Cherkizovo Group announces operating results for December, the fourth quarter and full 2020

January 13, 2021

Cherkizovo Group announces operating results for December, the fourth quarter, and full 2020

Moscow, Russia – January 13, 2021– Cherkizovo Group (MOEX: GCHE), the largest vertically integrated meat producer in Russia, announces operating results for December, the fourth quarter, and full 2020.[1]  

Fourth quarter 2020 highlights:

Chicken: Sales volume of 176.2 thousand tonnes was in line with the 4Q19 and previous quarter results. Average sales price increased by 4% y-o-y and 5% q-o-q.

Turkey: JV Tambov Turkey sales volume of 11.3 thousand tonnes increased by 1% y-o-y and 11% compared to the previous quarter. Average sales price declined 3% y-o-y and increased by 1% q-o-q.

Pork: Sales volume declined by 5% y-o-y and increased by 11% q-o-q. Average sales price increased by 19% y-o-y and fell by 8% q-o-q, as domestic pork crept higher, imports declining to negligible levels, and demand from local and export customers supporting the prices which increased by 19% y-o-y.

Meat Processing: Sales volume growth of 5% y-o-y and 6% q-o-q was driven by the broadened distribution of the sausage products. Average sales price increase of 7% y-o-y is attributed to the higher prices of the sausages and carcasses.

Grain (annual results): Harvest of 797 thousand tonnes increased by 34% y-o-y with sales adding 27% y-o-y. Optimized crop rotation focusing on wheat, corn, and soybeans, coupled with higher yields achieved, are the significant drivers for better results than last year.

        

Monthly performance 

 

December 2020

December 2019

Change % y-o-y

November 2020

Change % m-o-m

 

 

 

 

 

 

Chicken

 

 

 

 

 

Volume sold, thousand tonnes

    57.59  

    59.77  

(4%)

    60.94  

(5%)

Average price, RUB/kg

  117.67  

  110.91  

6%

  111.41  

6%

 

 

 

 

 

 

Turkey*

 

 

 

 

 

Volume sold, thousand tonnes

      3.95  

      4.06  

(3%)

      3.55  

11%

Average price, RUB/kg

  180.62  

  179.25  

1%

  171.63  

5%

 

 

 

 

 

 

Pork**

 

 

 

 

 

Volume produced, thousand tonnes

    27.39  

    25.55  

7%

    25.83  

6%

Volume sold, thousand tonnes

    26.26  

    24.63  

7%

    25.40  

3%

Average price, RUB/kg

    98.22  

    73.27  

34%

    87.26  

13%

 

December 2020

December 2019

Change % y-o-y

November 2020

Change % m-o-m

Meat Processing

 

 

 

 

 

Volume, thousand tonnes

    24.60  

    22.40  

10%

    22.70  

8%

Sausages

    11.85  

    10.83  

9%

    10.14  

17%

Cuts

      2.78  

      2.61  

6%

      2.72  

2%

Carcass

      8.27  

      7.95  

4%

      8.45  

(2%)

By-products

      1.71  

      1.01  

70%

      1.39  

23%

Average price, RUB/kg

  179.04  

  164.74  

9%

  164.83  

9%

Sausages

  208.29  

  202.51  

3%

  196.42  

6%

Cuts

  220.38  

  208.88  

6%

  207.71  

6%

Carcass

  143.16  

  113.81  

26%

  128.12  

12%

By-products

    82.73  

    46.18  

79%

    74.02  

12%

 

 

 

 

 

 

Samson***

 

 

 

 

 

Volume sold, thousand tonnes

      3.21  

      2.39  

34%

      2.96  

9%

Average price, RUB/kg

  202.68  

  204.55  

(1%)

  193.23  

5%

 

Quarterly performance

 

4Q 2020

4Q 2019

Change % y-o-y

3Q 2020

Change % q-o-q

 

 

 

 

 

 

Chicken

 

 

 

 

 

Volume sold, thousand tonnes

  176.20  

  175.40  

0%

  175.88  

0%

Average price, RUB/kg

  113.08  

  109.05  

4%

  108.02  

5%

 

 

 

 

 

 

Turkey*

 

 

 

 

 

Volume sold, thousand tonnes

    11.29  

    11.23  

1%

    10.19  

11%

Average price, RUB/kg

  170.51  

  176.00  

(3%)

  172.25  

(1%)

 

 

 

 

 

 

Pork**

 

 

 

 

 

Volume produced, thousand tonnes

    78.28  

    82.24  

(5%)

    69.80  

12%

Volume sold, thousand tonnes

    75.83  

    79.41  

(5%)

    68.40  

11%

Average price, RUB/kg

    95.03  

    80.08  

19%

  102.74  

(8%)

 

 

 

 

 

 

Meat Processing

 

 

 

 

 

Volume, thousand tonnes

    70.37  

    66.87  

5%

    66.25  

6%

Sausages

    32.30  

    30.45  

6%

    29.09  

11%

Cuts

      8.28  

      7.91  

5%

      9.21  

(10%)

Carcass

    24.94  

    25.24  

(1%)

    23.99  

4%

By-products

      4.84  

      3.27  

48%

      3.97  

22%

 

4Q 2020

4Q 2019

Change % y-o-y

3Q 2020

Change % q-o-q

Average price, RUB/kg

  171.73  

  160.66  

7%

  171.90  

(0%)

Sausages

  199.49  

  191.48  

4%

  188.96  

6%

Cuts

  215.58  

  210.71  

2%

  223.24  

(3%)

Carcass

  139.67  

  122.37  

14%

  151.17  

(8%)

By-products

    76.66  

    48.37  

58%

    53.04  

45%

 

 

 

 

 

 

Samson***

 

 

 

 

 

Volume sold, thousand tonnes

      9.02  

      7.10  

27%

      8.22  

10%

Average price, RUB/kg

  197.78  

  200.77  

(1%)

  207.85  

(5%)

 

Annual performance

 

2020

2019

Change % y-o-y

 

 

 

 

Chicken

 

 

 

Volume sold, thousand tonnes

    695.1  

    663.0  

5%

Average price, RUB/kg

    107.7  

    106.0  

2%

 

 

 

 

Turkey*

 

 

 

Volume sold, thousand tonnes

      41.0  

      39.4  

4%

Average price, RUB/kg

    174.0  

    169.2  

3%

 

 

 

 

Pork**

 

 

 

Volume produced, thousand tonnes

    301.5  

    284.2  

6%

Volume sold, thousand tonnes

    292.8  

    274.6  

7%

Average price, RUB/kg

      90.6  

      89.1  

2%

 

 

 

 

Meat Processing

 

 

 

Volume, thousand tonnes

    260.3  

    245.6  

6%

Sausages

    113.6  

    107.7  

6%

Cuts

      31.3  

      31.8  

(2%)

Carcass

      99.8  

      93.0  

7%

By-products

      15.6  

      13.2  

19%

Average price, RUB/kg

    164.7  

    163.0  

1%

Sausages

    192.0  

    187.9  

2%

Cuts

    214.9  

    211.7  

2%

Carcass

    134.5  

    134.1  

0%

By-products

      59.2  

      45.5  

30%

 

2020

2019

Change % y-o-y

 

 

 

 

Samson***

 

 

 

Volume sold, thousand tonnes

    31.08  

    22.67  

37%

Average price, RUB/kg

  199.08  

  204.94  

(3%)

 

 

 

 

Grain****

 

 

 

Volume harvested, thousand tonnes

  796.64  

  592.97  

34%

Wheat

  507.78  

  320.60  

58%

Corn

  109.77  

    99.31  

11%

Barley

    18.13  

    38.99  

(54%)

Sunflower

    71.41  

    84.42  

(15%)

Soybean

    58.82  

    38.48  

53%

Other

    30.73  

    11.17  

175%

Volume sold, thousand tonnes

  662.97  

  523.98  

27%

Wheat

  410.44  

  277.12  

48%

Corn

    96.54  

    94.58  

2%

Barley

    10.56  

    37.93  

(72%)

Sunflower

    71.41  

    83.41  

(14%)

Soybean

    45.40  

      6.88  

560%

Other

    28.62  

    24.06  

19%

Average price, RUB/kg

    16.72  

    11.02  

52%

Wheat

    12.34  

      9.02  

37%

Corn

    11.72  

      8.76  

34%

Barley

    11.31  

      8.62  

31%

Sunflower

    40.46  

    17.09  

137%

Soybean

    34.80  

    21.58  

61%

* 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.

**** Volumes are in dry weight



[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.