Cherkizovo increases pork sales 12% in Q1, poultry sales up 42% (Part 2)

April 25, 2012

Cherkizovo Group increased poultry sales by 42% year-on-year in the first quarter of 2012, the company said in a statement.

Pork sales increased by 12%, the statement said.

Sales volumes in the Poultry Division for the first quarter of 2012 increased by 42% to approximately 75 860 tonnes of sellable weight compared to approximately 53 570 tonnes for the first quarter of 2011, reflecting the contribution from the newly launched sites at Bryansk and sales by Mosselprom, acquired in May 2011.

Prices for poultry in dollar terms decreased by 1% from $2.43 per kg in the first quarter of 2011 to $2.40 per kg in the first quarter of 2012 (excluding VAT)*. Compared to the price in the fourth quarter of 2011 of $2.36, prices in the first quarter of 2012 were almost flat.

Prices in ruble terms increased by 2% from 71.07 rubles per kg in the first quarter of 2011 to 72.50 rubles per kg in the first quarter of 2012 (excluding VAT). Compared to the price in the fourth quarter of 2011 of 73.74 rubles per kg, the price in the first quarter of 2012 decreased by 2%.

Sales volumes in the Pork Division in the first quarter of 2012 increased by 12% to approximately 22 660 tonnes of live weight, compared to approximately 20 220 tonnes in the first quarter of 2011.

In dollar terms, prices for pork sales increased by 4% from $2.57 per kg of live weight in the first quarter of 2011 to $2.66 per kg of live weight in the first quarter of 2012 (excluding VAT). Compared to the price in the fourth quarter of 2011 of $2.66 per kg, the price in the first quarter of 2012 was flat.

Prices in ruble terms increased by 7% from 75.27 rubles per kg in the first quarter of 2011 to 80.53 rubles per kg in the first quarter of 2012 (excluding VAT). Compared to the price in the fourth quarter of 2011 of 82.97 rubles per kg, the price in the first quarter of 2012 decreased by 3%.

Sales volumes decreased by 12% to approximately 29 115 tonnes from 33 200 tonnes for the first quarter of 2011. The decrease was predominantly due to the closure of an inefficient slaughtering facility in southern Russia (Labinsk).

Prices in dollar terms increased by 10% from $4.30 per kg in the first quarter of 2011 to $4.75 per kg in the first quarter of 2012 (excluding VAT). Compared to the price in the fourth quarter of 2011 of $4.57, the price in the first quarter of 2012 increased by 4%.

Prices in ruble terms increased by 14% from 125.75 rubles per kg in the first quarter of 2011 to 143.82 rubles per kg in the first quarter of 2012 (excluding VAT). Compared to the price in the fourth quarter of 2011 of 142.74 rubles per kg, the price in the first quarter of 2012 stayed almost flat.

For price calculation in dollar terms the Company used the average exchange rate for 1Q2012 of 30.26 rubles per 1 US Dollar, for 1Q2011 the average rate was 29.27 rubles per 1 US dollar.