RUSSIA: Cherkizovo sees 9M sales gain

By Katy Askew | 1 November 2012

  •  Poultry volumes up 27%
  •  Pork volumes up 7%, gains accelerating
  •  Processed volumes down on mix, factory closure
Cherkizovo volumes, pricing up for poultry and pork

Cherkizovo volumes, pricing up for poultry and pork

Russia meat producer Cherkizovo has reported higher sales from both its poultry and pork divisions in the first nine months of the year.

In a regulatory filing yesterday (31 October), the company said poultry sales volumes increased by 27%. Gains were driven by organic volumes added in the Penza and Bryansk facilities as well as sales by Mosselprom, which is now fully integrated following its acquisition in May 2011.

Poultry prices in rouble terms increased by 6% in the nine-month period, the company said. Third quarter prices rose 10% on the second-quarter, Cherkizovo added.

Sales volumes in the pork division increased by 7% for the first nine months of 2011. Prices in rouble terms were up 4%.

However, Cherkizovo revealed that sales volumes in the meat processing division decreased by 13% in the nine months. This decline was attributed to the closure of an inefficient slaughtering facility in southern Russia and a change in the product mix towards higher margin processed products.

Processed meat prices in rouble terms increased by 12%, again reflecting product mix adjustments.

Show the press release

OJSC CHERKIZOVO GROUP ("the Company" or "the Group")

TRADING UPDATE FOR THE NINE MONTHS 2012

Moscow, Russia - October 31, 2012 - Cherkizovo OJSC (LSE: CHE), Russia's leading integrated and diversified meat producer, today issues a trading update for the first nine months of 2012.

Poultry Division

Sales volumes in the Poultry division for the first nine months of 2012 increased by a robust 27% to approximately 236,080 tonnes of sellable weight compared to 185,620 tonnes for the first nine months of 2011, reflecting organic volumes added in the Penza and Bryansk clusters and sales by Mosselprom, which was acquired in May 2011 and is now fully integrated.

Prices in rouble terms increased by 6% from 72.40 RUR/kg for the first nine months of 2011 to 76.43 RUR/kg in the first nine months of 2012 (excluding VAT). Compared to the second quarter of 2012, the price in the third quarter increased 10% to 82.19 RUR/kg.

Prices for poultry sales in dollar terms decreased by 2% from $2.52/kg for the first nine months of 2011 to $2.46/kg for the first nine months of 2012 (excluding VAT), due to rouble weakening. Compared to the second quarter of 2012, the price in the third quarter increased by 7% to $2.57/kg.

Pork Division

Sales volumes in the Pork division for the first nine months of 2012 increased by 7% to approximately 70,131 tonnes of live weight, compared to 65,800 tonnes for the first nine months of 2011.

Prices in rouble terms increased by 4% from 78.90 RUR/kg for the first nine months of 2011 to 81.85 RUR/kg for the first nine months of 2012 (excluding VAT). Compared to the price in the second quarter of 2012, the price in the third quarter increased by 1% to 82.91 RUR/kg.

In dollar terms, prices for pork sales decreased by 4% from $2.74/kg of live weight for the first nine months of 2011 to $2.63/kg of live weight for the same period of 2012 (excluding VAT)*, due to rouble weakening. Compared to the second quarter of 2012, the price in the third quarter decreased by 2% to $2.59/kg.

Meat Processing Division

Sales volumes in the Meat Processing Division decreased by 13% to approximately 94,049 tonnes for the first nine months of 2012 from 108,420 tonnes for the first nine months of 2011, due to the closure of an inefficient slaughtering facility in southern Russia and a change in the product mix towards higher margin processed products.

Prices in rouble terms increased by 12% from 130.56 RUR/kg for the first nine months of 2011 to 146.49 RUR/kg for the first nine months of 2012 (excluding VAT). Compared to the price in the second quarter, the price in the third quarter of 2012 increased by 5% to 151.11 RUR/kg.

Prices in dollar terms increased by 4% from $4.54/kg for the first nine months of 2011 to $4.71/kg for the first nine months of 2012 (excluding VAT)*. Compared to the second quarter of 2012, the price in the third quarter increased by 1% to $4.72/kg.

2012 Crop Harvest

Cherkizovo Group's farming division reported a 2012 crop harvest of approximately 103,000 tonnes of agricultural products, to date. The Company cultivated approximately 35,000 hectares in Voronezh and Orel regions. The 2012 harvest includes wheat (approx. 54,000 tonnes), barley (approx. 18,000 tonnes), sunflower (approx. 12,500 tonnes) and others (peas, corn, soya).

Original source: Cherkizovo

Sectors: Financials, Meat & poultry

Companies: Cherkizovo

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