Russia meat producer Cherkizovo has booked an increase in nine-months earnings but warned of a “risk of pressure on pork prices” going into the fourth quarter.
In the nine months to the end of September, net income grew 51% to US$158.7m, while operating profit climbed 42% to $180.1m. The group said it improved profitability in its poultry and meat processing segments in the period and invested in its pork segment to provide “long-term, sustainable growth beyond 2013”.
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Revenues amounted to $1.14bn in the nine months, a 6% increase on the prior year.
CEO Sergey Mikhailov said grain prices “increased significantly” in 2011, and therefore there is “a risk of pressure on pork prices, which makes operating environment for Q4 and early 2013 more challenging”.
Nonetheless, Cherkizovo said it “remains focused on delivering sustainable improvements in profitability through operational efficiency gains, better procurement, effective inventory management and increasing demand for our products”.
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