CEO of Cherkizovo Group Sergei Mikhailov Spoke at the “Russian Agricultural Holdings. Summer 2014” Conference

June 2, 2014

CEO of Cherkizovo Group Sergei Mikhailov Spoke at the “Russian Agricultural Holdings. Summer 2014” conference held by Agroinvestor magazine (Sanoma Independent Media Publishing House). In his speech, he talked about the company’s plans to produce about 480,000 tonnes of poultry meat (including production at Lisko Broiler), about 170,000 tonnes of pork live weight, and close to 140,000 tonnes of processed meat products in 2014.

CEO of Cherkizovo Group Sergei Mikhailov Spoke at the “Russian Agricultural Holdings. Summer 2014” Conference

According to Mr. Mikhailov, market conditions were favourable, giving the company an EBITDA margin of 15% in Q1 2013. The Group CEO also noted that given the current high prices for pork this year, the company expects to achieve an EBITDA margin of about 20% at the year end.

He added that, recently the investment attractiveness of poultry was low, but the situation is changing, and consumption is increasing due to growing demand from meat processors, so the company expects an upward trend in the sector and fairly favourable prices. In 2014, Cherkizovo plans to build 56 bird houses in Lipetsk Region (Eletsprom project) and Moscow Region (Mosselprom).

The company’s capital investments in 2014 will be about 5 billion roubles. The main investments will be made in the poultry division, primarily within the Eletsprom project. “We have completed our major investment program in the pork division, and no new construction is planned at present,” Mr. Mikhailov said. “Capital investments in pork production will be about a billion roubles, mostly in construction.”

Reference

The 13th (summer) federal business conference of Agroinvestor magazine, Agroholdings of Russia, one of the last meetings of agribusiness leaders in the 2013/14 season, summed up the agricultural year and outlined growth scenarios for the agricultural complex by the end of this year.

Conference participants included heads of the Ministry of Agriculture of Russia, owners and senior executives of the largest federal agricultural holdings, agricultural manufacturers from 33 regions and seven federal districts in the country, bankers and investors, insurance and leasing companies, industry experts and international auditing groups.