Russian meat processor Cherkizovo today (14 September) booked a jump in first-half profits on the back of rising revenues and “strong” organic volume growth.
Cherkizovo, which owns the Petelinka, Chicken Kingdom, Cherkizovsky and Five Stars brands, posted net income of US$71.4m for the six months to 30 June, a jump of 42% or 29% on a rouble-currency basis.
Revenues reached $579.9m, a rise of 26% or 15% when measured in roubles.
CEO Sergey Mikhailov said: “In the first half of 2010 we were able to deliver a strong performance, with a 26% increase in revenue and growth in adjusted EBITDA of 36%, resulting in a healthy 19% adjusted EBITDA margin. While our results were somewhat affected by the tighter pricing environment with poultry and pork prices coming off from the unusually high levels of last year, prices are now recovering and we expect a positive pricing environment throughout the remainder of the year.”