Russian meat processor Cherkizovo booked an increase in profits for 2009 but said it remains cautious about the effects of continuing pressure on domestic consumption.
The company earned US$120.2m, an increase of 54% on 2008. On a rouble currency basis, net income increased 96%.
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Adjusted EBITDA rose 19% to reach $181.5m and on a rouble currency basis increased 52%.
Sergey Mikhailov, CEO of Cherkizovo, said: “Our outstanding performance makes 2009 Cherkizovo’s most profitable year to date, despite the particularly challenging macroeconomic environment.”
The firm said that successes in it poultry division contributed “significantly” to the company’s overall adjusted EBITDA margin improvement.
During 2009, Cherkizovo started two investment projects at its Bryansk and Penza clusters, which are expected to increase the group’s poultry capacity by 40% once the sites are fully operational in 2012.
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By GlobalDataThe firm’s pork division experienced 38% growth in production volumes, while in the firm’s meat processing division, Cherkizovo lowered its operating expenses by focusing efforts on operational restructuring.
“For the current year, we remain cautious about the effects of continuing pressure on Russian consumption, however, we expect the pricing environment to remain broadly favorable for Cherkizovo’s products throughout the year. Russia still remains the biggest importer of meat in the world and the Russian government is targeting a substantial reduction in imports by 2012, which presents significant opportunities for Cherkizovo as the leading domestic producer,” Mikhailov said.
