December 2, 2013

 
Cherkizovo Group posts financial results for Jan-Sep 2013

Russia's Cherkizovo Group announced financial results for the period January-September 2013 with a 5% rise in revenue to US$1 195.0 million from US$1 137.3 million in the same period of 2012.

The Group's gross profit decreased by 28% to US$240.2 million for nine months of 2013 from US$333.6 million in the same period of 2012. Gross profit decreased by 26% to US$89.6 million in the third quarter of 2013 from US$120.6 million for third quarter 2012.

Adjusted earnings before interests, taxes, depreciation and amortisations (EBITDA) decreased by 51% to US$116.1 million for nine months of 2013 from US$239.1 million in nine months of 2012. Adjusted EBITDA decreased by 48% to US$46.8 million in third quarter of 2013 from US$90.2 million for the same period of 2012.

Net profit decreased by 86% to US$23.1 million for January-September 2013 compared to US$158.7 million in the same period of 2012. Net profit decreased by 77% to US$14.1 million in the third quarter of 2013 from US$62.8 million for third quarter of 2012.

The Group has launched in 2012 three new pork complexes in the Lipetsk, Tambov and Voronezh regions, which are fully operational and working at full capacity, resulting in a significant increase in pork production volumes and higher production efficiency.

Cherkizovo Group also reported its second harvest as a grain producer. In 2013, the grain harvest increased by half while wheat yield doubled. It also acquired Dankov meat processing plant in the Lipetsk region.

Cherkizovo Group is the largest meat manufacturer in Russia and one of the top three companies serving Russia's poultry, pork and meat processing markets.  The company is also Russia's largest producer of fodder.