Cherkizovo Group announces operating results for March and the first quarter of 2020

April 10, 2020

Moscow, Russia – April 10, 2020– Cherkizovo Group (MOEX: GCHE), the largest vertically integrated meat producer in Russia, today announces operating results for March and the first quarter of 2020. [1]

First quarter 2020 highlights:

Chicken: Sales volume of 174.7 thousand tonnes increased by 15% y-o-y, as in 2019 we launched production at the Kursk facility only in March, but it was fully operational in 2020. Average sales price remained unchanged compared to a year ago.

Turkey: JV Tambov Turkey sales volume of 9.9 thousand tonnes up 20% y-o-y, due to the low base effect of 1Q19, when we accumulated inventory. Average sales price declined by 2% y-o-y.

Pork: Production and sales volume both increased by 13%, compared to 1Q19 as we were ramping up production facilities built last year. Prices declined by 10% y-o-y due to the additional supply of pork meat fr om domestic producers, while export opportunities remained limited.

Meat Processing: Sales volume increased by 15% y-o-y, on the acceleration of sausages and carcass sales, up 13% and 25% respectively. In the sausages category we broadened sales of hams, semi-smoked and boiled sausages, while growth of the carcass sales was in line with pork production increase. Average sales price of the segment declined by 5%, as carcass price eased by 8% y-o-y, in line with live pork prices, and prices for sausages and cuts were stable.

Grain: Due to the seasonal nature of the business, the results of this segment are reported annually to better reflect business performance.

Monthly performance

 

March 2020

March 2019

Change % y-o-y

February 2020

Change % m-o-m

 

 

 

 

 

 

Chicken

 

 

 

 

 

Volume sold, thousand tonnes

    61.30  

    56.72  

8% 

    56.56  

8% 

Average price, RUB/kg

  107.38  

    97.92  

10% 

    99.98  

7% 

 

 

 

 

 

 

Turkey*

 

 

 

 

 

Volume sold, thousand tonnes

      3.59  

      2.95  

22% 

      3.18  

13% 

Average price, RUB/kg

  175.81  

  175.03  

0% 

  170.66  

3% 

 

 

 

 

 

 

Pork**

 

 

 

 

 

Volume produced, thousand tonnes

    24.91  

    25.12  

(1%)

    24.83  

0% 

Volume sold, thousand tonnes

    23.83  

    24.42  

(2%)

    23.86  

(0%)

Average price, RUB/kg

    87.68  

    89.98  

(3%)

    76.75  

14% 

 

 

 

 

 

 

 

March 2020

March 2019

Change % y-o-y

February 2020

Change % m-o-m

Meat Processing

 

 

 

 

 

Volume, thousand tonnes

    22.05  

    18.99  

16% 

    21.16  

4% 

Sausages

      9.30  

      7.64  

22% 

      8.34  

11% 

Cuts

      2.59  

      2.81  

(8%)

      2.50  

3% 

Carcass

      8.57  

      7.48  

15% 

      8.97  

(4%)

By-products

      1.59  

      1.07  

49% 

      1.34  

18% 

Average price, RUB/kg

  159.34  

  166.17  

(4%)

  151.66  

5% 

Sausages

  191.05  

  199.00  

(4%)

  191.42  

(0%)

Cuts

  211.28  

  203.93  

4% 

  205.16  

3% 

Carcass

  130.09   

  135.95   

(4%)

  116.10   

12% 

By-products

    46.82   

    43.40   

8% 

    42.47   

10% 

 

 

 

 

 

 

Samson***

 

 

 

 

 

Volume sold, thousand tonnes

      2.13   

      1.75   

22% 

      1.92   

11% 

Average price, RUB/kg

  202.88   

  202.71   

0% 

  188.00   

8% 


Quarterly performance

 

1Q 2020

1Q 2019

Change % y-o-y

4Q 2019

Change % q-o-q

 

 

 

 

 

 

Chicken

 

 

 

 

 

Volume sold, thousand tonnes

  174.70  

  151.60  

15% 

  175.40  

(0%)

Average price, RUB/kg

  103.48  

  103.56  

(0%)

  109.05  

(5%)

 

 

 

 

 

 

Turkey*

 

 

 

 

 

Volume sold, thousand tonnes

      9.87  

      8.22  

20% 

    11.23  

(12%)

Average price, RUB/kg

  173.00  

  177.10  

(2%)

  176.00  

(2%)

 

 

 

 

 

 

Pork**

 

 

 

 

 

Volume produced, thousand tonnes

    77.11  

    68.13  

13% 

    82.24  

(6%)

Volume sold, thousand tonnes

    74.27  

    65.94  

13% 

    79.41  

(6%)

Average price, RUB/kg

    79.97  

    89.17  

(10%)

    80.08  

(0%)

 

 

 

 

 

 

Meat Processing

 

 

 

 

 

Volume, thousand tonnes

    61.36  

    53.56  

15% 

    66.87  

(8%)

Sausages

    25.43  

    22.53  

13% 

    30.45  

(17%)

Cuts

      7.03  

      7.70  

(9%)

      7.91  

(11%)

Carcass

    25.00  

    20.01  

25% 

    25.24  

(1%)

By-products

      3.91  

      3.32  

18% 

      3.27  

19% 

 

 

 

 

 

 

 

1Q 2020

1Q 2019

Change % y-o-y

4Q 2019

Change % q-o-q

Average price, RUB/kg

  155.34  

  162.85  

(5%)

  160.66  

(3%)

Sausages

  190.30  

  193.82  

(2%)

  191.48  

(1%)

Cuts

  208.46   

  203.30   

3% 

  210.71   

(1%)

Carcass

  121.81   

  132.50   

(8%)

  122.37   

(0%)

By-products

    46.96   

    41.74   

13% 

    48.37   

(3%)

 

 

 

 

 

 

Samson***

 

 

 

 

 

Volume sold, thousand tonnes

      5.94   

      5.03   

18% 

      7.10   

(16%)

Average price, RUB/kg

  195.63   

  201.04   

(3%)

  200.77   

(3%)

[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 wh ere the Company has 75% interest.