Cherkizovo Meat 4Q Net Profit Rises 13% to $39.3 Mln

March 14, 2012

Cherkizovo Group, one of Russia's leading meat producers, saw its fourth quarter net profit increased 13 percent year-on-year to $39.3 million to US GAAP, the company said in a statement on Wednesday.

The company's revenues grew 22 percent to $392.5 million. Adjusted Earnings before Interest, Taxation, Depreciation and Amortization (EBITDA) rose 30 percent to $65.5 million, while the EBITDA margin went up to 17 percent from 16 percent.

Gross profit increased 23 percent in October-December 2011 to $98.8 million.

Cherkizovo's net profit for 2011 went up two percent to $147.8 million, while its revenue rose 24 percent to $1.473 billion.

"These results have been achieved despite a very challenging operating environment at the start of the year, where extreme weather conditions had resulted in lost harvests and a steep increase in grain prices. The company benefited from important and timely government measures in 2011 to support poultry and pork producers through subsidies and action in the grain market," Cherkizovo CEO Sergei Mikhailov was quoted in the statement as saying.

Company's net debt amounted to $719.2 million as of December 31, 2011, while the effective cost of the debt decreased to 2.0 percent from 2.5 percent in 2010.