RUSSIA: Low pig prices, high grain costs hit Cherkizovo
Cherkizovo said 2013 was a challenging year for the meat industry
Russian meat processor Cherkizovo today (6 March) booked a drop in profits for 2013 as lower pig prices and high grain costs in the first half of the year weighed on earnings.
CEO Sergei Mikhailov admitted 2013 was "challenging" as the group posted a net profit decline of 71% to US$64.5m. Operating profit was down 62% at US$88.7m.
The top line improved, with sales growing 5% to US$1.6bn.
However, Mikhailov said an easing in grain prices, a fall in the pork supply and government subsidies meant the situation improved in the back half of 2013. He added: "Despite the fact that profitability indexes dropped substantially due to the unfavourable market environment, we are satisfied with the results of the work done in 2013."
Mikhailov insisted facilities operating at full capacity in 2014 made it possible to sell higher volumes of meat. With a "favourable pricing environment", he believed Cherkizovo would be able "to regain our business profitability longstanding trend."
Click here for the full results.
Meat, Fish & Poultry in Europe industry profile provides top-line qualitative and quantitative summary information including: market size (value 2009-13, and forecast to 2018). The profile also contai...
Synopsis The report provides a review of the mergers and acquisitions (M&As), partnering deals, and agreements entered into by companies active in the global meat market during March 2014. Summary Us...
- Focus: ConAgra own-label exit plan is about growth
- How the CGF plans to halve global food waste
- IRI – The opportunity of range optimisation
- Focus: Mexican dairies focus on adding value
- just-food's pick: Top trends at Fancy Food Show
- ConAgra confirms private-label exit
- Kraft Heinz unveils management structure
- Kellogg eyes trends with product launches
- Kraft faces lawsuit over 'natural' claims
- US performance weighs on General Mills