Cherkizovo Group Announces Operating Results for 3Q and 9M 2017
Moscow, Russia - 26 October 2017 - Cherkizovo Group (LSE: CHE; MOEX: GCHE), the largest vertically integrated meat and feed producer in Russia, today announces operating results for the nine months ended 30 September 2017.
Key Operating Results
|
Sales volumes by business segments, tonnes
|
|
Divisions
|
9M 2017
|
9M 2016
|
Y-o-Y change, %
|
|
Poultry
|
385,373
|
372,070
|
4%
|
|
Pork
|
148,722
|
131,581
|
13%
|
|
Meat Processing
|
167,346
|
158,647
|
5%
|
Poultry Division
Sales volumes during 9M 2017 increased by 4% y-o-y to 385,373 tonnes of sellable weight (9M 2016: 372,070), due to growth in production, as a result of improved operating performance. The average price during the reporting period increased by 1% y-o-y to 90.13[1] RUB/kg as a result of an increase in value-added products and brand name sales by 18% and HoReCa sales by 1%. On a quarterly basis, 3Q 2017 sales increased by 1% to 130,462 compared to 2Q 2017, due to growth in production. However, the average price during the corresponding period decreased by 2% to 88.14 RUB/kg.
|
Poultry
|
9M
2017
|
9M
2016
|
Change
Y-o-Y, %
|
3Q
2017
|
2Q
2017
|
Change
Q-o-Q, %
|
|
Volume, tonnes
|
385,373
|
372,070
|
4%
|
130,462
|
129,361
|
1%
|
|
Average price, RUB/kg
|
90.13
|
89.66
|
1%
|
88.14
|
89.93
|
(2%)
|
Pork Division
Sales volumes in 9M 2017 increased by 13% y-o-y to 148,722 tonnes (9M 2016: 131,581 tonnes). This was due to higher production levels following the launch of two new wean-to-finish sites in Voronezh in 2016, one in 2017 and two new wean-to-finish sites in Lipetsk this year, supported by the ongoing genetics improvement programme launched in 2014. The average price rose by 8% y-o-y to 93.74 RUB/kg (9M 2016: 86.59 RUB/kg). Average price growth during the period was attributable to the ongoing recovery in consumer purchasing power as well as promotional activity by large retailers. During 3Q 2017, sales volumes decreased by 6% to 50,353 tonnes compared to the previous quarter, due to exceptional growth in production volumes in the absence of free space at the sites. At the same time, the average sales price decreased by 4% q-o-q to 93.20 RUB/kg.
|
Pork
|
9M
2017
|
9M
2016
|
Change
Y-o-Y, %
|
3Q
2017
|
2Q
2017
|
Change
Q-o-Q, %
|
|
Volume, tonnes
|
148,722
|
131,581
|
13%
|
50,353
|
53,391
|
(6%)
|
|
Average price, RUB/kg
|
93.74
|
86.59
|
8%
|
93.20
|
97.22
|
(4%)
|
Meat Processing Division
Sales volumes increased by 5% y-o-y to 167,346 tonnes from 158,647 tonnes during 9M 2017. Growth was associated with a further increase in the share of sales of Cherkizovo Group products in the modern food retail format, in particular in the categories of sausage products and meat semi-finished products. During the reporting period, the average net price increased by 3% y-o-y to 150.19 RUB/kg resulting from an improvement in the product mix and an increase in the share of premium segment sales. On a q-o-q basis, sales volumes increased by 6% in the 3Q 2017 to 60,032 tonnes. Nevertheless, the average net price increased by 1% q-o-q to 150.34 RUB/kg due to a more balanced product mix.
|
Meat Processing
|
9M
2017
|
9M
2016
|
Change
Y-o-Y, %
|
3Q
2017
|
2Q
2017
|
Change
Q-o-Q, %
|
|
Volume, tonnes
|
167,346
|
158,647
|
5%
|
60,032
|
56,835
|
6%
|
|
Average price, RUB/kg
|
150.19
|
145.16
|
3%
|
150.34
|
148.92
|
1%
|
Grain Farming Division
Due to the seasonality of this business, the results of this segment are reported annually to better reflect the business performance and provide an appropriate basis for comparison.
For more information please visit http://www.cherkizovo.com or contact
Cherkizovo Group
Irina Kravets,
PR Manager,
+7 (495) 660 2440 ext. 15171,
i.kravets@cherkizovo.com
About Cherkizovo Group
Cherkizovo Group is the largest meat and feed producer in Russia. The Group is a top-3 producer in each of the Russian poultry, pork and processed meat markets and is the largest feed manufacturer in the country.
Cherkizovo Group encompasses eight full cycle poultry production facilities, 15 modern pork production facilities, six meat processing plants, eight feed mills and more than 287,000 hectares of agricultural land. The Group also includes Tambov Turkey facility, a joint Russian-Spanish venture. In 2016, Cherkizovo Group produced 903,000 tonnes of meat and meat products.
Thanks to its vertically integrated structure, which includes grain growing and storage, feed production, livestock breeding, fattening and slaughtering, and meat processing, alongside a distribution system, the Group has delivered long-term sales growth and profitability. The Group's consolidated revenue was RUB 82.4 billion in 2016.
Cherkizovo Group shares and GDRs are traded on the Moscow Exchange (MOEX) and the London Stock Exchange (LSE).
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