RUSSIA: Volumes up, prices pressured at meat group Cherkizovo

By Dean Best | 31 January 2014

Each of Cherkizovos four divisions sold more in 2013 but prices were under pressure

Each of Cherkizovo's four divisions sold more in 2013 but prices were under pressure

Russian meat group Cherkizovo saw sales volumes from each its four divisions rise in 2013, although prices were lower year-on-year.

Cherkizovo sold more from each of its pork, poultry, meat processing and grain businesses last year.

The London-listed company's largest division, poultry, saw volumes increase 7% compared to 2012.

Pork volumes jumped 52%, meat processing volumes were up 6% and grain volumes grew by 24%.

However, each division saw prices fall. Grain prices were down 27%, Cherkizovo said.

Show the press release

30.01.2014 

TRADING UPDATE FOR THE FOURTH QUARTER OF 2013 AND FULL YEAR 2013

 

Cherkizovo Group (LSE:CHE), Russia's leading integrated meat and fodder manufacturer, announces its operating results for the fourth quarter of 2013 and full year 2013.

 

Poultry Division

 

Sales volume in the Poultry division in 2013 increased by 7% y-o-y to 342 637 tonnes of sellable weight compared to 319 210 tonnes in 2012.

 

Prices in ruble terms decreased by 2% y-o-y from 78.62 RUR/kg* in 2012 to 77.12 RUR/kg in 2013. Compared to the price of 77.09 RUR/kg in the third quarter of 2013, the price in the fourth quarter of 2013 increased by 1% to 78.05 RUR/kg.

 

Prices in dollar terms decreased by 4% y-o-y from $2.53/kg in 2012 to $2.42/kg in 2013. Compared to the price of $2.35/kg in the third quarter of 2013, the price in the fourth quarter of 2013 increased by 2% to $ 2.40/kg.

 

USDRUR exchange rate

30.41

31.61

32.80

32.53

31.85

31.09




1Q13

2Q 13

3Q13

4Q13

2013

2012

chg y-o-y

chg q-o-q

Price, RURB/kg

76.92

76.34

77.09

78.05

77.12

78.62

-1.9%

1.2%

Price, USD/kg

2.53

2.41

2.35

2.40

2.42

2.53

-4.2%

2.1%

Volumes, tonnes

80 370

84 744

86 315

91 208

342 637

319 210

7.3%

5.7%

 

 

Pork Division

 

Sales volume in the Pork division in 2013 increased by 52% y-o-y to 157 565 tonnes of live weight, compared to 103 877 tonnes in 2012.

 

Prices in ruble terms decreased by 14% y-o-y from 76.52 RUR/kg in 2012 to 65.68 RUR/kg in 2013. Compared to the price of 70.31 RUR/kg in the third quarter of 2013, the price in the fourth quarter of 2013 increased by 1% to 71.32 RUR/kg.

 

Prices in dollar terms decreased by 16% y-o-y from $2.46/kg in 2012 to $2.06/kg in 2013 (live weight). Compared to the price of $2.14/kg in the third quarter of 2013, the price in the fourth quarter of 2013 increased by 2% to $2.19/kg.    

 

USDRUR exchange rate

30.41

31.61

32.80

32.53

31.85

31.09




1Q13

2Q 13

3Q13

4Q13

2013

2012

chg y-o-y

chg q-o-q

Price, RUR/kg

57.36

61.06

70.31

71.32

65.68

76.52

-14.2%

1.4%

Price, USD/kg

1.89

1.93

2.14

2.19

2.06

2.46

-16.3%

2.3%

Volumes, tonnes

34 429

35 649

41 612

45 876

157 565

103 877

51.7%

10.2%

 

 

Meat Processing Division

 

Sales volume in the Meat Processing division increased by 6% y-o-y to 134 530 tonnes in 2013 from 127 403 tonnes in 2012.

 

Prices in ruble terms were almost flat at 148.39 RUR/kg in 2012 vs. 148.78 RUR/kg in 2013. Compared to the price of 146.18 RUR/kg in the third quarter of 2013, the price in the fourth quarter of 2013 increased by 7% to 156.32 RUR/kg.

 

Prices in dollar terms decreased by 2% y-o-y to $4.67/kg in 2013 compared to $4.77/kg in 2012. Compared to the price of $4.46/kg in the third quarter of 2013, the price in the fourth quarter of 2013 increased by 8% to $4.80/kg.

 

USDRUR exchange rate

30.41

31.61

32.80

32.53

31.85

31.09




1Q13

2Q 13

3Q13

4Q13

2013

2012

chg y-o-y

chg q-o-q

Price, RUR/kg

147.20

145.10

146.18

156.32

148.78

148.39

0.3%

6.9%

Price, USD/kg

4.84

4.59

4.46

4.80

4.67

4.77

-2.1%

7.8%

Volumes, tonnes

29 442

33 784

36 205

35 099

134 530

127 403

5.6%

-3.1%

 

 

Grain Division

 

In 2013 Cherkizovo harvested more than 175 000 of grain (bunker weight), which is 51% higher than in 2012, stated at about 116 000 tonnes. Harvest in net weight was at about 163 000 tonnes in 2013, which is 48% higher than 110 000 tonnes in 2012. In 2013 agricultural season the Company sowed approximately 40 thousand hectares in the Orel and Voronezh regions.

 

Sales volume in the Grain division increased by 24% y-o-y to 139 565 tonnes in 2013 from 112 414 tonnes in 2012. Wheat, barley and corn accounted for 80% of sales (in tonnes) in 2013.

 

Prices in ruble terms decreased by 27% y-o-y from 8.28 RUR/kg in 2012 to 6.01 RUR/kg in 2013. Compared to the price of 5.08 RUR/kg in the third quarter of 2013, the price in the fourth quarter of 2013 increased by 25% to 6.37 RUR/kg.

 

Prices in dollar terms decreased by 29% y-o-y from $0.27/kg in 2012 to $0.19/kg in 2013. Compared to the price of $0.15/kg in the third quarter of 2013, the price in the fourth quarter of 2013 increased by 26% to $0.20/kg.

 

USDRUR exchange rate

30.41

31.61

32.80

32.53

31.85

31.09




1Q13

2Q 13

3Q13

4Q13

2013

2012

chg y-o-y

chg q-o-q

Price, RUR/kg

8.46

8.59

5.08

6.37

6.01

8.28

-27.4%

25.4%

Price, USD/kg

0.28

0.27

0.15

0.20

0.19

0.27

-29.1%

26.4%

Volumes, tonnes

8 668

3 481

58 868

68 548

139 565

112 414

24.2%

16.4%

 

 

*      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.

Original source: Cherkizovo

Sectors: Emerging markets, Financials, Meat & poultry

Companies: Cherkizovo

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