Printer Friendly

Russia: Meat Producer Cherkizovo Group Issues Q3 Trading Results.

October 29, 2009 -- Cherkizovo sold more chicken and pork but less processed meat in the first nine months of 2009 than in the same period last year, it was announced today.

The company's poultry division gained 1 per cent total sales volumes for the first nine months of 2009, the company announced today. Poultry sales rose to approximately 138,920 tonnes compared to approximately 137,260 tonnes in the first nine months of 2008.

Prices for Cherkizovo poultry sales increased by 19% from 62.03 roubles per kg in the first nine months of 2008 to 73.88 roubles per kg in the same period of 2009 (excluding VAT).

As a result of the 35% depreciation of the rouble over this period, prices in dollar terms decreased by 12% from $2.58 per kg in the first nine months of 2008 to $2.27 per kg in the same period of 2009 (excluding vat).

Sales volumes in the London Stock Exchange listed company's pork division in the first nine months of 2009 increased 23% to approximately 35,570 tonnes compared to approximately 28,870 tonnes for the same period of 2008, reflecting the growing production of the new farms at Lipetsk and Tambov.

In the first nine months of 2009, prices in the pork division increased in rouble terms by 14% from 66.10 roubles per kg in the first nine months of 2008 to 75.38 roubles per kg in the same period of 2009 (excluding VAT). In dollar terms, prices decreased by 16% from $2.75 per kg of live weight in the first nine months of 2008 to $2.32 per kg of live weight in the same period of 2009.

However, in the meat processing division, Cherkizovo continued to see decreased sales volumes of lower-priced products, and this, together with lower consumption in the regions of Russia due to the challenging economic environment, affected the performance of the division. Sales volumes decreased by 13% to approximately 95,370 tonnes in the first nine months of 2009 from approximately 110,200 tonnes in the first nine months of 2008.

Average prices increased by 13% from 99.65 roubles in the first nine months of 2008 to 112.75 roubles in the same period of 2009 (excluding VAT). Segment prices in dollar terms decreased 16% from $4.14 in the first nine months of 2008 to $3.47 in the same period of 2009 (excluding VAT).

Sergey Mikhailov, CEO of Cherkizovo Group said: "While the current economic environment continues to exert a somewhat negative influence on consumption patterns, our performance reflects the impact of favorable rouble pricing and continued sales momentum."

He added: "The Group continues to invest in operational capacity and efficiency improvements and expects further volume gains in its pork segment.

"The management remains optimistic about the outlook for the final quarter of the year."
COPYRIGHT 2009 Global Data Systems
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2009 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:Feedinfo News Service
Article Type:Financial report
Date:Oct 29, 2009
Words:479
Previous Article:Czech Chicken and Pork Output Drops in Q3.
Next Article:The Netherlands: De-Heus Confident Environmental Licence Will Be Granted.
Topics:

Terms of use | Copyright © 2018 Farlex, Inc. | Feedback | For webmasters