Cherkizovo Group announces operating results for March and the first quarter of 2019

April 11, 2019

Moscow, Russia – April 11, 2019– Cherkizovo Group (MOEX: GCHE), the largest vertically integrated meat producer in Russia, today announces operating results for March and the first quarter of 2019.1


First quarter 2019 highlights:

Monthly performance

March 2019

March 2018

Change % y-o-y

February 2019

Change % m-o-m

 

 

Chicken

Volume sold, thousand tonnes

    56.72   

    48.02   

18%

    45.22   

25%

Average price, RUB/kg

    97.92   

    83.23   

18%

105.05   

(7%)

 

Turkey*

Volume sold, thousand tonnes

      2.95   

      3.66   

(19%)

      2.80   

5%

Average price, RUB/kg

175.03   

117.45   

49%

176.47   

(1%)

Pork**

Volume produced, thousand tonnes

    25.12   

    21.80   

15%

    23.12   

9%

Volume sold, thousand tonnes

    24.42   

    21.10   

16%

    22.51   

8%

Average price, RUB/kg

    89.98   

    80.52   

12%

    87.86   

2%

 

Meat Processing

Volume, thousand tonnes

    18.99   

    19.97   

(5%)

    17.38   

9%

Sausages

      7.64   

      9.18   

(17%)

      6.85   

12%

Cuts

      2.81   

      4.20   

(33%)

      2.52   

12%

Carcass

      7.48   

      5.38   

39%

      6.75   

11%

By-products

      1.07   

      1.21   

(12%)

      1.27   

(16%)

Average price, RUB/kg

166.17   

154.96   

7%

159.30   

4%

Sausages

199.00   

177.58   

12%

194.27   

2%

Cuts

203.93   

178.49   

14%

205.11   

(1%)

Carcass

135.95   

119.90   

13%

128.85   

6%

By-products

    43.40   

    57.10   

(24%)

    41.43   

5%

Samson***

Volume sold, thousand tonnes

      1.75   

N/A

-

      1.65   

6%

Average price, RUB/kg

202.71   

N/A

-

197.70   

3%


Quarterly performance

1Q 2019

1Q 2018

Change % y-o-y

4Q 2018

Change % q-o-q

 

 

Chicken

Volume sold, thousand tonnes

151.60   

137.55   

10%

144.35   

5%

Average price, RUB/kg

103.56   

    82.07   

26%

112.39   

(8%)

 

Turkey*

Volume sold, thousand tonnes

      8.22   

      9.74   

(16%)

      9.61   

(15%)

Average price, RUB/kg

177.10   

116.00   

53%

188.05   

(6%)

Pork**

Volume produced, thousand tonnes

    68.13   

    57.52   

18%

    72.72   

(6%)

Volume sold, thousand tonnes

    65.94   

    54.84   

20%

    70.20   

(6%)

Average price, RUB/kg

    89.17   

    81.59   

9%

100.61   

(11%)

 

Meat Processing

Volume, thousand tonnes

    53.56   

    53.06   

1%

    59.64   

(10%)

Sausages

    22.53   

    25.02   

(10%)

    27.69   

(19%)

Cuts

      7.70   

    11.42   

(33%)

      9.02   

(15%)

Carcass

    20.01   

    13.51   

48%

    19.90   

1%

By-products

      3.32   

      3.11   

7%

      3.04   

9%

Average price, RUB/kg

162.85   

155.29   

5%

180.86   

(10%)

Sausages

193.82   

175.52   

10%

201.11   

(4%)

Cuts

203.30   

179.26   

13%

226.08   

(10%)

Carcass

132.50   

120.21   

10%

151.69   

(13%)

By-products

    41.74   

    57.00   

(27%)

    53.23   

(22%)

Samson***

Volume sold, thousand tonnes

      5.03   

N/A

-

N/A

-

Average price, RUB/kg

201.04   

N/A

-

N/A

-


1 Volume data is presented before intersegment eliminations and denotes to sales volumes except noted (**). All prices in the release are net of sales volume discounts and VAT.

*Volume and prices reported in turkey section represent sales of the Trading Company “Cherkizovo”.

** Difference in the volume produced and volume sold in the pork segment is attributable to retained gilts replacement. Volumes sold include both intercompany and 3rd party sales.

*** Volumes and prices reflect total sales of Samson – Food products, an associate company where the Company has 75% interest.


For more information please visit http://www.cherkizovo.com or contact:


Investor Relations

Andrei Novikov

Phone: 7 495 6602440 ext 15430

Email: a.novikov@cherkizovo.com


Media contacts

Phone: 7 495 6602440

Email: pr@cherkizovo.com


About Cherkizovo Group

Cherkizovo is the largest diversified meat producer in Russia. The Group is a top-3 producer in each of the Russian poultry, pork and processed meat markets.

Cherkizovo encompasses seven chicken manufacturing complexes (as well as the Belaya Ptitsa production complex which we currently operate pursuant to a lease agreement), sixteen pork farms, five meat processing plants (and an additional meat processing plant operated by an equity associate Samson – Food Products) and two slaughter facilities, nine animal feed plants, twelve grain elevators, a land bank of c. 290,000 ha. and a full-cycle turkey production plant in Tambov, owned and operated as a joint venture with Grupo Fuertes, a leading Spanish agriculture and food company.

Due to its vertically-integrated structure, which includes grain growing and storage, feed production, livestock breeding, fattening and slaughtering, and meat processing, alongside a distribution network across Russia, the Group has delivered long-term sales growth and profitability. The Group’s consolidated revenue was RUB 102.6 billion in 2018.

Cherkizovo Group shares are traded on the Moscow Exchange (MOEX).