Cherkizovo Group (LSE: CHE), Russia’s leading integrated meat and fodder producer, announces its operational results for the first quarter of 2014.
Poultry Division
Sales volume in the Poultry division for the first quarter of 2014 increased by 13% to 90 506 tonnes of sellable weight (1Q 2013: 80 370 tonnes) including 1 651 tonnes of sellable weight produced by LISCO Broiler since the day of the acquisition of this company by Cherkizovo (March 24).
The average price in ruble terms increased by 1% to 77.90 RUR/kg from 76.92 RUR/kg in the first quarter of 2013. Compared to the price in the fourth quarter of 2013 of 78.05 RUR/kg, the price in the first quarter of 2014 was almost flat.
The average price for the poultry in dollar terms decreased by 12% to $2.23/kg in the first quarter of 2014 from $2.53/kg in the first quarter of 2013*. Compared to the price in the fourth quarter of 2013 of $2.40/kg, the price in the first quarter of 2014 decreased by 7% due mostly to the weakening of the ruble against the U.S. dollar.
USD/RUR exchange rate | 30,41 | 34,96 | 32,53 | ||
1Q2013 | 1Q2014 | 4Q2013 | chg y-o-y | chg q-o-q | |
Volume, tonnes | 80 370 | 90 506 | 91 208 | 13% | −1% |
Average price, RUR/kg | 76,92 | 77,90 | 78,05 | 1% | 0% |
Average price, USD/kg | 2,53 | 2,23 | 2,40 | −12% | −7% |
Pork Division**
Sales volume in the Pork division in the first quarter of 2014 increased by 17% to 40 352 tonnes of live weight, compared to 34 429 tonnes in the first quarter of 2013.
The average price in ruble terms increased by 28% to 73.55 RUR/kg in the first quarter of 2014 from 57.36 RUR/kg in the first quarter of 2013. Compared to the price in the fourth quarter of 2013 of 71.32 RUR/kg, the price in the first quarter of 2014 increased by 3%.
The average price in dollar terms increased by 12% to $2.10/kg in the first quarter of 2014 from $1.89/kg in the first quarter of 2013. Compared to the price in the fourth quarter of 2013 of $2.19/kg, the price in the first quarter of 2014 decreased by 4%.
USD/RUR exchange rate | 30,41 | 34,96 | 32,53 | ||
1Q2013 | 1Q2014 | 4Q2013 | chg y-o-y | chg q-o-q | |
Volume, tonnes | 34 429 | 40 352 | 45 876 | 17% | −12% |
Average price, RUR/kg | 57,36 | 73,55 | 71,32 | 28% | 3% |
Average price, USD/kg | 1,89 | 2,10 | 2,19 | 12% | −4% |
Meat Processing Division
Sales volume in the Meat Processing division was almost flat at 29 670 tonnes in the first quarter 2014 (1Q 2013: 29 442 tonnes).
The average price in ruble terms increased by 4% to 152.52 RUR/kg in the first quarter of 2014 from 147.16 RUR/kg in the first quarter of 2013. Compared to the price in the fourth quarter of 2013 of 156.32 RUR/kg, the price in the first quarter of 2014 decreased by 2%.
The average price in dollar terms decreased by 10% to $4.36/kg in the first quarter of 2014 from $4.84/kg in the first quarter of 2013. Compared to the price in the fourth quarter of 2013 of $4.80/kg, the price in the first quarter of 2014 decreased by 9% due mostly to the weakening of the ruble against the U.S. dollar.
USD/RUR exchange rate | 30,41 | 34,96 | 32,53 | ||
1Q2013 | 1Q2014 | 4Q2013 | chg y-o-y | chg q-o-q | |
Volume, tonnes | 29 442 | 29 670 | 35 099 | 1% | −15% |
Average price, RUR/kg | 147,16 | 152,52 | 156,32 | 4% | −2% |
Average price, USD/kg | 4,84 | 4,36 | 4,80 | −10% | −9% |
Grain Division
Sales volume in the Grain division increased by 136% to 20 453 tonnes from 8 668 tonnes for the first quarter of 2013.
The average price decreased by 28% to 6,10 RUR/kg in the first quarter of 2014 from 8.46 RUR/kg in the first quarter of 2013. Compared to the price in the fourth quarter of 2013 of 6.37 RUR/kg, the price in the first quarter of 2014 decreased by 4%.
The average price in dollar terms decreased by 37% to $0.17/kg in the first quarter of 2014 from $0.28/kg in the first quarter of 2013. Compared to the price in the fourth quarter of 2013 of 0.20 $/kg, the price in the first quarter decreased by 11%.
USD/RUR exchange rate | 30,41 | 34,96 | 32,53 | ||
1Q2013 | 1Q2014 | 4Q2013 | chg y-o-y | chg q-o-q | |
Volume, tonnes | 8 668 | 20 453 | 68 548 | 136% | −70% |
Average price, RUR/kg | 8,46 | 6,10 | 6,37 | −28% | −4% |
Average price, USD/kg | 0,28 | 0,17 | 0,20 | −37% | −11% |
* All prices in this press-release exclude VAT. $ symbol stands for US Dollar. All percentage figures in tables are rounded to decimal places, absolute numbers are rounded to two decimal places.
** The data for the first quarter of 2013 was retrospectively changed in accordance with the new accounting policy.
About Cherkizovo Group
Cherkizovo Group (LSE:CHE) is the largest meat and fodder producer in Russia and one of the top three companies serving Russia’s poultry, pork and sausages markets. The Company’s brands include Cherkizovsky, Petelinka, Kurinoe Tsarstvo and Mosselprom. CEO Sergei Mikhailov and his family control 63% of Cherkizovo Group, and free float amounts to 37%. Cherkizovo shares are quoted on LSE and MICEX.
Due to its vertically integrated structure, which includes agricultural land, grain storage facilities, feed production, livestock breeding, growing and slaughtering as well as meat processing and distribution, Cherkizovo has consistently delivered sustainable revenue and profit growth. In 2013, Cherkizovo’s US GAAP consolidated revenue exceeded $1.6 billion, and the Group produced more than half a million tonnes of meat and processed meat products.
Cherkizovo’s strategy includes both organic growth and consolidation of the Russian meat market. Within the last five years alone, Cherkizovo has invested more than $1 billion into the development of Russia’s agriculture sector.
For further information:
Alexander Kostikov | Tel. +7 495 788 3232 ext. 15019 |
Head of IR/Communications |