RUSSIA: Cherkizovo books "solid" FY results

By Michelle Russell | 13 March 2013

Net profit soars 75%
EBITDA up 29%
Net sales climb 7%

Cherkizovo said management is “optimistic” about the group's business prospects

Cherkizovo Group said it delivered a "very solid performance" in 2012, with sales and profits up in the period.

Net income in the 12 month period soared 75% to reach US$225.2m, the Russian meat giant reported today (13 March). EBITDA increased 29% to $314m.

The company said it delivered impressive results in its poultry division where sales increased by 22%, supplying half of group revenue and more than half of profits. Group sales were up 7% to $1.58bn.

CEO Sergey Mikhailov said management is "optimistic" about the group's business prospects, despite a "challenging" 2013 outlook for grain and pork prices, which he said is expected to negatively impact its 2013 performance.

Show the press release

Financial results for the Year Ending 31 December 2012

Financial Highlights

Revenues increased by 14% in roubles, and increased by 7% on a US Dollar basis to $1,581.7 million in 2012 from $1,472.6 million for 2011. Revenues increased by 11% to $436.3 million in the fourth quarter of 2012 from $393.3 million for the fourth quarter of 2011, and increased by 11% on a rouble currency basis.

· EBITDA* increased by 37 % in roubles, and increased by 29% on a US Dollar basis to $314.6 million from $243.4 million for 2011. EBITDA* in the fourth quarter of 2012 increased 17% to $75.4 million from $64.6 million in the fourth quarter of 2011, and increased 17% on a rouble currency basis.

· EBITDA* margin was at a record 20% in 2012, up from 17% for 2011. EBITDA* margin in the fourth quarter of 2012 increased slightly to 17%.

· Gross profit increased by 30% in roubles, and increased by 23% on a US Dollar basis to $452.1 million from $367.0 million for 2011. Gross profit in the fourth quarter increased 24% to $118.6 million from $95.7 million in the fourth quarter of 2011, and increased 24% on a rouble currency basis.

Group gross margin was 29% for 2012 and 27% for the fourth quarter.

Net income increased by 75% in roubles and increased by 66% on a US Dollar basis to $225.2 million from $135.9 million for 2011. Net income in the fourth quarter more than doubled (+115%) to $66.5 million from $ 31.0 million, and more than doubled (+112%) on a rouble currency basis.

As of 31 December 2012 Net debt** was RUR 26,077.1 million ($858.6 million).

· The effective cost of debt was almost flat at 2%.

· Net income per share increased 64% to $5.19

· Cash conversion rate (CCR)*** was 108% (177% for 2011)

Original source: Cherkizovo Group

Sectors: Emerging markets, Financials, Meat & poultry

Companies: Cherkizovo

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