Cherkizovos Q3 profits are up, but 9M stayed fairly flat

Cherkizovo's Q3 profits are up, but 9M stayed fairly flat

Russian meat producer Cherkizovo has booked a rise in third-quarter profits on the back of higher sales.

In the three-month period to the end of September, Cherkizovo saw EBITDA rise to US$42.6m, compared to $35.9m in the same period last year, it said today (1 December). Operating income increased 26% to $52.7m.

Sales rose from $294.7m in last year's third quarter to $389.2m.

The nine-month results show operating income was flat at $128.1m, although EBITDA rose 6% to $177.9m. Sales were up to $389.2m, compared to $294.7m in the same period in 2010.

The company heralded its acquisition of poultry producer Mosselprom at the start of 2011 and the beginning of construction of a new production complex in Lipetsk, which it says will be Russia's largest such facility.

Cherkizovo CEO Sergey Mikhailov said: "Despite the challenging operating environment at the beginning of this year, we have delivered a solid performance across all segments in the first nine months of 2011, in line with our targets.

"We have completed the integration of Mosselprom within the group's production structure. As a result of the synergy benefits we have received, operational efficiency is increasing in our poultry segment, where we continue to deliver against our large scale capacity increase projects."

He added that management is "optimistic" that the company will produce a strong financial performance for the full year.

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