Russian meat company Cherkizovo saw its earnings fall in the third quarter after the high cost of feed grain hit profits.
In the three months to the end of September, earnings plunged 77% to US$14.1m. Adjusted EBITDA slumped 48% to $46.8m.
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The company blamed “historically high” grain prices and “historically low” pork prices for the declines.
Revenue, however, increased 6% to $415.4m.
Despite the declines, CEO Sergei Mikhailov said it saw the market environment “improving” in the third quarter, after a “very challenging” first and second quarters.
“While poultry prices remain flat, pork prices rebounded by 40% between May and October, and the new harvest grain is trading at half the level of February. Market environment improvements are positively affecting the Company’s performance in the third quarter and going forward.”
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By GlobalDataClick here to view the full earnings release.
