Cherkizovo Group announces operating results for September and the third quarter of 2020

October 12, 2020

Moscow, Russia – October 12, 2020– Cherkizovo Group (MOEX: GCHE), the largest vertically integrated meat producer in Russia, today announces operating results for September and the third quarter of 2020.[1]  

Third quarter 2020 highlights:

Chicken: Sales volume of 175.9 thousand tonnes increased by 7% y-o-y. Sales volumes of our products under Petelinka and Chicken Kingdom brands increased by 4% y-o-y and 2% y-o-y respectively. In the third quarter export sales continued to perform strongly, while demand from foodservice clients gradually recovered and almost reached the level of the last year by the end of the quarter. Average sales price declined by 3% y-o-y.

Turkey: JV Tambov Turkey sales volume of 10.2 thousand tonnes down 8% y-o-y, with average sales price higher by 7% y-o-y.

Pork: Production volumes of 69.8 thousand tonnes increased by 5% y-o-y, and sales volume reached 68.4 thousand tonnes, up 6% y-o-y compared to 3Q19. Average sales price increased by 10% y-o-y, as the growth of domestic production slowed down and prolonged barbeque season on the back of good weather supported demand.

Meat Processing: Sales volume increased by 4% y-o-y, as sales of the cuts increased, and sales volumes of sausages and carcasses were stable. Average sales price of the segment increased by 6%, pushed by carcass and sausages price growth of 8% y-o-y and 5% y-o-y respectively.

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

Monthly performance

 

September 2020

September 2019

Change % y-o-y

August 2020

Change % m-o-m

 

 

 

 

 

 

Chicken

 

 

 

 

 

Volume sold, thousand tonnes

    57.94  

    52.86  

10%

    58.46  

(1%)

Average price, RUB/kg

  108.48  

  110.79  

(2%)

  108.17  

0%

 

 

 

 

 

 

Turkey*

 

 

 

 

 

Volume sold, thousand tonnes

      3.71  

      3.54  

5%

      3.35  

11%

Average price, RUB/kg

  165.59  

  167.27  

(1%)

  169.88  

(3%)

 

 

 

 

 

 

Pork**

 

 

 

 

 

Volume produced, thousand tonnes

    23.69  

    24.14  

(2%)

    23.02  

3%

Volume sold, thousand tonnes

    23.09  

    23.14  

(0%)

    22.74  

2%

Average price, RUB/kg

    99.01  

    85.62  

16%

  105.78  

(6%)

 

 

 

 

 

 

 

September 2020

September 2019

Change % y-o-y

August 2020

Change % m-o-m

Meat Processing

 

 

 

 

 

Volume, thousand tonnes

    22.65  

    21.24  

7%

    22.30  

2%

Sausages

    10.09  

    10.01  

1%

      9.89  

2%

Cuts

      2.86  

      2.20  

30%

      3.21  

(11%)

Carcass

      8.20  

      7.99  

3%

      7.91  

4%

By-products

      1.50  

      1.03  

45%

      1.29  

16%

Average price, RUB/kg

  169.65  

  157.99  

7%

  174.05  

(3%)

Sausages

  191.23  

  180.41  

6%

  188.50  

1%

Cuts

  219.99  

  218.17  

1%

  225.34  

(2%)

Carcass

  146.76  

  127.77  

15%

  155.28  

(5%)

By-products

    53.70  

    46.34  

16%

    51.09  

5%

 

 

 

 

 

 

Samson***

 

 

 

 

 

Volume sold, thousand tonnes

      2.47  

      1.97  

26%

      2.86  

(14%)

Average price, RUB/kg

  206.55  

  204.51  

1%

  215.00  

(4%)

 

Quarterly performance

 

3Q 2020

3Q 2019

Change % y-o-y

2Q 2020

Change % q-o-q


Chicken

 

 

 

 

 

Volume sold, thousand tonnes

  175.88  

  164.51  

7%

  168.31  

5%

Average price, RUB/kg

  108.02  

  110.81  

(3%)

  105.99  

2%

 

 

 

 

 

 

Turkey*

 

 

 

 

 

Volume sold, thousand tonnes

    10.19  

    11.03  

(8%)

      9.63  

6%

Average price, RUB/kg

  172.25  

  160.71  

7%

  180.85  

(5%)

 

 

 

 

 

 

Pork**

 

 

 

 

 

Volume produced, thousand tonnes

    69.80  

    66.76  

5%

    76.36  

(9%)

Volume sold, thousand tonnes

    68.40  

    64.48  

6%

    74.34  

(8%)

Average price, RUB/kg

  102.74  

    93.52  

10%

    85.71  

20%

 

 

 

 

 

 

Meat Processing

 

 

 

 

 

Volume, thousand tonnes

    66.25  

    63.70  

4%

    62.36  

6%

Sausages

    29.09  

    29.30  

(1%)

    26.78  

9%

Cuts

      9.21  

      6.73  

37%

      6.76  

36%

Carcass

    23.99  

    24.46  

(2%)

    25.90  

(7%)

By-products

      3.97  

      3.21  

24%

      2.91  

36%

 

 

 

 

 

 

 

3Q 2020

3Q 2019

Change % y-o-y

2Q 2020

Change % q-o-q

Average price, RUB/kg

  171.90  

  162.56  

6%

  158.50  

8%

Sausages

  188.96  

  180.12  

5%

  187.94  

1%

Cuts

  223.24  

  223.11  

0%

  209.19  

7%

Carcass

  151.17  

  140.18  

8%

  126.49  

20%

By-products

    53.04  

    45.75  

16%

    54.85  

(3%)

 

 

 

 

 

 

Samson***

 

 

 

 

 

Volume sold, thousand tonnes

      8.22  

      5.74  

43%

      7.90  

4%

Average price, RUB/kg

  207.85  

  207.74  

0%

  194.04  

7%

 

* 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.