One of Russia’s largest meat producers and processors Cherkizovo Group, increased its net profit by 30% in the second quarter of 2012/11, thanks to a good performance in the poultry industry.
Net income of Cherkizovo increased to 1.8 billion roubles, the Company reported at the unaudited US GAAP results on Wednesday. During the first half of 2012 it increased by 56% to 2.95 billion roubles a year on year.
EBITDA of the company increased by 31 percent to 2.6 billion for April-June 2012, the margin rate increased to 22 percent from 19 percent a year ago. Gross margin increased to 29 percent from 28 percent in Q2 2011.
"... We are optimistic about the Government’s support of the industry, - said Cherkizovo Chief Executive Officer Sergei Mikhailov about the agricultural sector. - After the introduction to the WTO, the Government is considering an extension of the zero rate of tax for an unlimited period for agricultural producers. At the same time subsidised interest rates will remain. Such measures will help to achieve long-term goals in agribusiness development ... “
This year, the company expects to increase poultry production by 19 percent and pig farming by 31 percent, Cherkizovo Chief Executive Officer Sergei Mikhailov told Reuters in early May.