Cherkizovo Group has booked a jump in sales at its poultry and pork units, with volume growth and pricing driving the top line.

In an update released this morning (25 April), the Russian meat group said the average price for poultry increased 1% while volumes were up 13% during the first quarter to end-March. Pork selling prices rose 28% and volume sales rose 17%, the group added.

Sales volumes at its processed meat business, however, remained "almost flat" in the period. Average selling prices were up 4% year-on-year.

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OJSC Cherkizovo Group 1st quarter result

April 25, 2014

TRADING UPDATE FOR THE FIRST QUARTER OF 2014

Cherkizovo Group (LSE: CHE), Russia's leading integrated meat and fodder producer, announces its operational results for the first quarter of 2014. 

Poultry Division

Sales volume in the Poultry division for the first quarter of 2014increased by 13% to 90 506 tonnes of sellable weight (1Q 2013: 80 370tonnes) including 1 651 tonnes of sellable weight produced by LISCO Broiler since the day of the acquisition of this company by Cherkizovo (March 24).

The average price in ruble terms increased by 1% to 77.90 RUR/kg from 76.92 RUR/kg in the first quarter of 2013. Compared to the price in the fourth quarter of 2013 of 78.05 RUR/kg, the price in the first quarter of 2014was almost flat.

The average price for the poultry in dollar terms decreased by 12% to $2.23/kg in the first quarter of 2014 from $2.53/kg in the first quarter of 2013*. Compared to the price in the fourth quarter of 2013 of $2.40/kg, the price in the first quarter of 2014decreased by 7% due mostly to the weakening of the ruble against the U.S. dollar.

USD/RUR exchange rate

30,41

34,96

32,53




1Q2013

1Q2014

4Q2013

chg y-o-y

chg q-o-q

Volume, tonnes

80 370

90 506

91 208

13%

-1%

Average priceRUR/kg

76,92

77,90

78,05

1%

0%

Average price, USD/kg

2,53

2,23

2,40

-12%

-7%

 

Pork Division**

Sales volume in the Pork division in the first quarter of 2014increased by 17% to 40 352 tonnes of live weight, compared to 34 429tonnes in the first quarter of 2013.

The average price in ruble terms increased by 28% to 73.55 RUR/kg in the first quarter of 2014 from 57.36 RUR/kg in the first quarter of 2013. Compared to the price in the fourth quarter of 2013 of 71.32 RUR/kg, the price in the first quarter of 2014 increased by 3%.

The average price in dollar terms increased by 12% to $2.10/kg in the first quarter of 2014 from $1.89/kg in the first quarter of 2013. Compared to the price in the fourth quarter of 2013 of $2.19/kg, the price in the first quarter of 2014 decreased by 4%.

USD/RUR exchange rate

30,41

34,96

32,53




1Q2013

1Q2014

4Q2013

chg y-o-y

chg q-o-q

Volume, tonnes

34 429

40 352

45 876

17%

-12%

Average priceRUR/kg

57,36

73,55

71,32

28%

3%

Average price, USD/kg

1,89

2,10

2,19

12%

-4%

 

Meat Processing Division

Sales volume in the Meat Processing division was almost flat at 29 670 tonnes in the first quarter 2014 (1Q 2013: 29 442 tonnes).

The average price in ruble terms increased by 4% to 152.52RUR/kg in the first quarter of 2014 from 147.16 RUR/kg in the first quarter of 2013. Compared to the price in the fourth quarter of 2013 of 156.32 RUR/kg, the price in the first quarter of 2014decreased by 2%.

The average price in dollar terms decreased by 10% to $4.36/kg in the first quarter of 2014 from $4.84/kg in the first quarter of 2013. Compared to the price in the fourth quarter of 2013 of $4.80/kg, the price in the first quarter of 2014 decreased by 9% due mostly to the weakening of the ruble against the U.S. dollar.

 

USD/RUR exchange rate

30,41

34,96

32,53




1Q2013

1Q2014

4Q2013

chg y-o-y

chg q-o-q

Volume, tonnes

29 442

29 670

35 099

1%

-15%

Average priceRUR/kg

147,16

152,52

156,32

4%

-2%

Average price, USD/kg

4,84

4,36

4,80

-10%

-9%

 

Grain Division

Sales volume in the Grain division increased by 138% to 20 642 tonnes from 8 668 tonnes for the first quarter of 2013.

The average price decreased by 30% to 5.91 RUR/kg in the first quarter of 2014 from 8.46 RUR/kg in the first quarter of 2013. Compared to the price in the fourth quarter of 2013 of 6.37 RUR/kg, the price in the first quarter of 2014 decreased by 7%.

The average price in dollar terms decreased by 39% to $0.17/kg in the first quarter of 2014 from $0.28/kg in the first quarter of 2013. Compared to the price in the fourth quarter of 2013 of 0.20 $/kg, the price in the first quarter decreased by 14%.

USD/RUR exchange rate

30,41

34,96

32,53




1Q2013

1Q2014

4Q2013

chg y-o-y

chg q-o-q

Volume, tonnes

8 668

20 642

68 548

138%

-70%

Average price, RUR/kg

8,46

5,91

6,37

-30%

-7%

Average price, USD/kg

0,28

0,17

0,20

-39%

-14%

___________________________________________________________________________________

All prices in this press-release exclude VAT. $ symbol stands for US Dollar. All percentage figures in tables are rounded to decimal places, absolute numbers are rounded to two decimal places.

**The data for the first quarter of 2013 was retrospectively changed in accordance with the new accounting policy.

 

Original source: Cherkizovo Group