May 8, 2018
Cherkizovo Group announces operating results for first quarter of 2018
In late April, Cherkizovo Group announced operating results for the first quarter of 2018.
For the company's chicken segment, sales volumes were up 10% year-on-year, but they remained on a par with the previous quarter. The 11% year-on-year decline in average sales prices was due to the higher base effect of the previous year. The seasonal slowdown effect was a main driver of price decline compared to the previous quarter.
For Cherkizovo's turkey segment, JV Tambov Turkey ran at full capacity in 1Q18, with a robust increase in output against 1Q17 results, and in line with the previous quarter. Sales prices, however, came under pressure with the return of a major competitor to the market at the end of 2017.
For Cherkizovo's pork segment, 1Q18's 28% increase year-on-year in production and sales volumes are due to the launch of its newly constructed facilities. In contrast, the 9% drop in output from the previous quarter stems from the seasonal nature of live pork production. Average sales prices were lower compared to both the previous quarter and 1Q17 results.
For Cherkizovo's grain segment, results are reported annually to better reflect business performance, due to the seasonal nature of the business.
