Cherkizovo will not pay 2011 dividends

July 3, 2012

OJSC Cherkizovo Group will not pay dividends for 2011, the company announced after its Annual General Meeting held on June 29.

The shareholders approved the company’s financial and economic results for the 2011 fiscal year. Igor Babayev, Musheg Mamikonyan, Yevgeny Mikhailov, Sergey Mikhailov, Marcus James Rhodes, Vitaly Podolskiy, Samuel B. Lipman were elected members of the Board of Directors.

Cherkizovo Group (tax number: 7718560636) is a leading Russian manufacturer of meat and meat goods. The company’s operations are structured into three operating divisions: poultry (four integrated poultry-farming complexes), pork (seven large integrated pig-breeding complexes) and meat processing (seven meat processing plants). In addition to meat, the Group produces feed-stuffs (3 mixed feed factories) and sells its goods through its own three trading houses. The company is among the leaders in the Russian market and the brand portfolio includes goods with leading trade marks such as Petelinka, Kurinoye Tsarstvo, Cherkizovskiy, Pyat' Zvezd.

US GAAP net profit of Cherkizovo for Q1 2012 rose 2.1-fold to $39.3 million from $18.4 million for Q1 2011. Consolidated revenue increased by 16% to $357.8 million against $308.2 million for Q1 2011. Adjusted EBITDA increased by 74% to $60.8 million against $34.9 million for Q1 2011. Adjusted EBITDA margin increased to 17% from 11% in Q1 2011. In Q1 2011, net debt amounted to $775 million.