Cherkizovo Group announces operating results for June and the second quarter of 2020

July 10, 2020

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

Second quarter 2020 highlights:

Chicken: Sales volume of 168.3 thousand tonnes declined by 2% y-o-y. Sales volumes of our premium brand Petelinka was in line with the results of the previous year, while volumes of Chicken Kingdom branded produce added 3% y-o-y. We also significantly added export volumes, as foodservice demand remained well below the levels of the last year due to COVID-19 restrictions. Average sales price increased by 6% y-o-y.

Turkey: JV Tambov Turkey sales volume of 9.6 thousand tonnes up 8% y-o-y, with sales of Pava-Pava branded products adding 23% y-o-y and boosting average sales price by 10% y-o-y.

Pork: Production volumes of 76.4 thousand tonnes increased by 14% y-o-y, and sales volume reached 74.3 thousand tonnes, up 14% y-o-y compared to 2Q19. We gradually reach our targeted production levels on the back of facilities ramp up and operational efficiencies gains. Prices declined by 11% y-o-y as the domestic market remains oversupplied with limited export possibilities.

Meat Processing: Sales volume increased by 1% y-o-y, as we were pushing more sausages and carcass sales, up 6% and 11% respectively. Average sales price of the segment declined by 4%: as carcass price eased by 11% y-o-y, in line with live pork prices, and prices for sausages and cuts remaining 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

 

June 2020

June 2019

Change % y-o-y

May 2020

Change % m-o-m

 

 

 

 

 

 

Chicken

 

 

 

 

 

Volume sold, thousand tonnes

    52.08  

    56.09  

(7%)

    60.08  

(13%)

Average price, RUB/kg

107.57  

101.68  

6%

101.45  

6%

 

 

 

 

 

 

Turkey*

 

 

 

 

 

Volume sold, thousand tonnes

      3.25  

      2.95  

10%

      3.20  

2%

Average price, RUB/kg

176.64  

160.26  

10%

182.70  

(3%)

 

 

 

 

 

 

Pork**

 

 

 

 

 

Volume produced, thousand tonnes

    26.39  

    21.71  

22%

    25.79  

2%

Volume sold, thousand tonnes

    25.62  

    20.84  

23%

    25.26  

1%

Average price, RUB/kg

    89.18  

    92.44  

(4%)

    83.19  

7%

 

 

 

 

 

 

 

June 2020

June 2019

Change % y-o-y

May 2020

Change % m-o-m

Meat Processing

 

 

 

 

 

Volume, thousand tonnes

    21.94  

    19.55  

12%

    20.60  

6%

Sausages

      9.36  

      8.46  

11%

      9.09  

3%

Cuts

      3.11  

      2.78  

12%

      2.04  

53%

Carcass

      8.62  

      7.12  

21%

      8.64  

(0%)

By-products

      0.86  

      1.19  

(28%)

      0.84  

3%

Average price, RUB/kg

160.77  

163.51  

(2%)

157.02  

2%

Sausages

183.43  

186.23  

(2%)

186.39  

(2%)

Cuts

207.60  

214.13  

(3%)

207.14  

0%

Carcass

130.46  

137.25  

(5%)

123.44  

6%

By-products

    48.47  

    40.99  

18%

    62.66  

(23%)

 

 

 

 

 

 

Samson***

 

 

 

 

 

Volume sold, thousand tonnes

      2.97  

      1.55  

91%

      2.62  

13%

Average price, RUB/kg

194.00  

206.38  

(6%)

191.38  

1%

 

Quarterly performance

 

 

2Q 2020

2Q 2019

Change % y-o-y

1Q 2020

Change % q-o-q

 

 

 

 

 

 

Chicken

 

 

 

 

 

Volume sold, thousand tonnes

168.31  

171.52  

(2%)

174.70  

(4%)

Average price, RUB/kg

105.99  

100.34  

6%

103.48  

2%

 

 

 

 

 

 

Turkey*

 

 

 

 

 

Volume sold, thousand tonnes

      9.63  

      8.93  

8%

      9.87  

(2%)

Average price, RUB/kg

180.85  

164.01  

10%

173.00  

5%

 

 

 

 

 

 

Pork**

 

 

 

 

 

Volume produced, thousand tonnes

    76.36  

    67.04  

14%

    77.11  

(1%)

Volume sold, thousand tonnes

    74.34  

    64.76  

15%

    74.27  

0%

Average price, RUB/kg

    85.71  

    95.88  

(11%)

    79.97  

7%

 

 

 

 

 

 

Meat Processing

 

 

 

 

 

Volume, thousand tonnes

    62.36  

    61.47  

1%

    61.36  

2%

Sausages

    26.78  

    25.38  

6%

    25.43  

5%

Cuts

      6.76  

      9.49  

(29%)

      7.03  

(4%)

Carcass

    25.90  

    23.24  

11%

    25.00  

4%

By-products

      2.91  

      3.36  

(13%)

      3.91  

(25%)

 

 

 

 

 

 

 

2Q 2020

2Q 2019

Change % y-o-y

1Q 2020

Change % q-o-q

Average price, RUB/kg

158.50  

165.96  

(4%)

155.34  

2%

Sausages

187.94  

187.21  

0%

190.30  

(1%)

Cuts

209.19  

211.15  

(1%)

208.46  

0%

Carcass

126.49  

141.63  

(11%)

121.81  

4%

By-products

    54.85  

    46.10  

19%

    46.96  

17%

 

 

 

 

 

 

Samson***

 

 

 

 

 

Volume sold, thousand tonnes

      7.90  

      4.80  

65%

      5.94  

33%

Average price, RUB/kg

194.04  

211.87  

(8%)

195.63  

(1%)


* 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.




[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.