The chief executive of Russian meat firm Cherkizovo today (1 February) predicted that that the company would report “strong” results for 2010 after seeing sales volumes rise across its three main divisions.
Cherkizovo CEO Sergei Mikhailov said the company was “satisfied with its overall performance” and expects “strong” figures for 2010, which will be published in March.
Mikhailov said the results would come despite the impact of rising input costs and “less favourable” pricing trends.
“Despite the tough operating environment in 2010, we have continued investing in production growth. These investments have focused on large-scale projects to increase poultry capacity, and provide significantly higher output from 2011,” Mikhailov said.
In 2010, Cherkizovo’s poultry sales volumes rose 5%. Pork volumes jumped 63% – which Mikhailov said was “in line with management expectations” – while meat-processing volumes were up 9%.
“In 2011 we anticipate solid volume growth across our pork and poultry divisions, as the pork operations begin to operate at full capacity and we start increasing poultry volumes at our Bryansk and Penza poultry clusters. Continued growth in the Meat Processing division will be supported by consumption growth,” Mikhailov said.
“The group expects the pricing environment for our products to recover towards the second half of the year supported by reduced imports and rising costs resulting from grain price increases, as well as by a shortage of supply driven by the reduction of stock.”
Shares in Cherkizovo were down 0.3% at 19.5p at 15:42 GMT this afternoon.