Cherkizovo Group ups poultry sales 34% to 260,200 tonnes in 2011 (Part 2)

February 1, 2012

OJSC Cherkizovo Group, one of Russia's leading integrated and diversified meat producers, increased poultry sales 34% to 260,200 tonnes (in slaughter weight) in 2011, the company said in its trading update for 2011.

This growth reflects "organic volumes added in the Bryansk and Penza clusters and the inclusion of sales by Mosselprom, acquired in May 2011," the update said.

Cherkizovo boosted meat product sales 3% to approximately 145,270 (live weight) tonnes last year, and pork production was up 4% to about 91,400 tonnes.

The average poultry meat sales price (in ruble equivalent) rose 1% from 71.89 rubles per kilo in 2010 to 72.79 rubles in 2011 (not counting VAT). The sales price in the fourth quarter of last year was virtually flat with Q3 at 73.74 rubles.

The sales price (in dollar equivalent) increased 5% from $2.37 per kilo in 2010 to $2.48 in 2011 (not counting VAT). The price decreased 7% in Q4 from Q3 to $2.36 per kilo.

Pork production increased 4% last year to 91,400 (live weight) tonnes (87,650 tonnes in 2010).

The average pork sales price increased 11% from 71.95 rubles per kilo in 2010 to 80.04 rubles last year (not counting VAT). The Q4 sales price in Q4 last year was up 2% from the previous quarter at 82.97 rubles per kilo. In dollar equivalent, the price increased 15% from $2.37 per kilo (live weight) of pork in 2010 to $2.72 in 2011 (not counting VAT). In Q4 last year, the price decreased 5% from Q3 to $2.66 per kilo.

The company said that in 2011 "demand for product of meat-processing returned to the pre-crisis level, and sales volume in the segment rose 3% to 145,270 tonnes compared with 141,550 tonnes in 2010."

The meat-product sales price increased 13% (in ruble equivalent) from 118.21 rubles per kilo in 2010 to 133.65 rubles in 2011 (not counting VAT). In the fourth quarter of last year, the price increased 6% from the previous quarter to 142.74 rubles per kilo. In dollar equivalent, the sales price was up 17% from $3.89 per kilo in 2010 to $4.55 in 2011 (not counting VAT). Quarter-on-quarter, the price decreased 2% in Q4 to $4.57 per kilo.

The company will be releasing its financial report for 2011 next month.

Cherkizovo Group includes seven meat processing plants (in the Moscow, Penza, Ulyanovsk and Rostov Regions and Krasnodar Territory), four hog and two poultry complexes and a feed plant. It raised $251 million in an IPO on the London Stock Exchange in May 2006. The group is controlled by Igor Babayev and members of his family.