Cherkizovo earnings climb on efficiency, sales

Russian poultry company Cherkizovo Group booked an increase in earnings for the first nine months of the year thanks to efficiency gains, higher sales and an improved performance from its poultry and pork segments.

The company said adjusted EBITDA climbed 178% in the nine months, rising to US$322.9m. Gains accelerated in the third quarter, when adjusted EBITDA increased 214%. Net profit for the year-to-date amounted to $228.1m.

Revenue increased by 15% to $1.4bn, Cherkizovo revealed in a regulatory filing. The company said higher meat prices benefited its pork and poultry operating units – however, this also led to an increase in input costs at its prepared meats division.

Cherkizovo’s performance was lifted by organic growth and M&A, CEO Sergei Mikhailov suggested. “The company continues to develop through the combination of organic growth, investing into new projects and improving the efficiency of existing ones, and strategic acquisitions, such as acquisition of Lisko-Broiler in 1Q.”