Russian protein group Cherkizovo reported higher earnings today (20 August) as a rise in sales and improved poultry and meat processing margins offset lower margins in the group's pork business.
First-half adjusted EBITDA increased by 5% to RUB6.5bn (US$95.4m) versus RUB6.1bn in the comparable period of last year. Adjusted EBITDA margin decreased to 18% from 20% last year. The company noted higher operating expenses as a percent of sales in the pork division, up from 3% to 6%.
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Net income totaled RUB4.1bn, representing a 3% increase year-on-year. Revenue increased by 19% to RUB36.2bn.
Looking to the full-year, the devaluation of the rouble may "significantly" impact the cost of grain, the company warned. This would pressure margins further because, while pork prices remain high but there is "some saturation" in the poultry sector in Russia, the company continued.
