July 15, 2020

Cherkizovo announces operating results for June, Q2

Cherkizovo Group, the largest vertically integrated meat producer in Russia, has announced this month its operating results for June and the second quarter of 2020. 

The group's second quarter 2020 highlights are as followed:

Chicken - Sales volume of 168.3 thousand tonnes declined by 2% year-on-year. Sales volumes of Cherkizovo's premium brand Petelinka was in line with the results of the previous year, while volumes of its Chicken Kingdom products added 3% year-on-year. Cherkizovo also significantly increased export volumes, as foodservice demand remained well below the levels of the last year due to COVID-19 restrictions. Average sales price increased by 6% year-on-year.

Turkey - JV Tambov Turkey saw sales volume of 9.6 thousand tonnes, up 8% year-on-year. Sales of the Pava-Pava products increased 23% year-on-year and boosted average sales prices by 10% year-on-year.

Pork - Production volumes of 76.4 thousand tonnes increased by 14% year-on-year and sales volume reached 74.3 thousand tonnes, up 14% year-on-year compared to second quarter of 2019. Cherkizovo gradually reached its targeted production levels on the back of facilities ramping up and operational efficiencies gains. Prices declined by 11% year-on-year as the domestic market remains oversupplied with limited export possibilities.

Meat Processing - Sales volume increased by 1% year-on-year, as Cherkizovo was pushing more sausages and carcass sales, up 6% and 11% respectively. Average sales price of the segment declined by 4%: as carcass price eased by 11% year-on-year, in line with live pork prices. Prices for sausages and cuts remain stable.

Grain - Due to the seasonal nature of business, the results of this segment are reported annually to better reflect business performance.

- Cherkizovo