Cherkizovo ups poultry sales 6%, pork 58% in Q1

April 25, 2013

The Cherkizovo Group boosted poultry sales 6% and pork sales 58% year-on-year in Q1 2013, the company said in a statement. 

Poultry segment sales came to 80,370 tonnes, up from 75,866 tonnes a year previously. 

Prices for poultry in dollar terms increased by 5% from $2.40/kg in the first quarter of 2012 to $2.53/kg in the first quarter of 2013. Compared to the price in the fourth quarter of 2012 of $2.73/kg, the price in the first quarter of 2013 decreased by 7%. 

Prices in ruble terms increased by 6% from 72.50 rubles/kg in the first quarter of 2012 to 76.92 rubles/kg in the first quarter of 2013. Compared to the price in the fourth quarter of 2012 of 84.81 rubles/kg, the price in the first quarter of 2013 decreased by 9%. 

Sales volumes in the Pork division in the first quarter of 2013 increased by 58% to approximately 35 887 tonnes of live weight, compared to 22 660 tonnes in the first quarter of 2012. 

In dollar terms, price for pork decreased by 29% from $2.66/kg in the first quarter of 2012 to $1.89/kg in the first quarter of 2013 (live weight). Compared to the price in the fourth quarter of 2012 of $2.11/kg, the price in the first quarter of 2013 decreased by 10%. 

Prices in ruble terms decreased by 28% from 80.53 rubles/kg in the first quarter of 2012 to 57.59 rubles /kg in the first quarter of 2013. Compared to the price in the fourth quarter of 2012 of 65.44 rubles/kg, the price in the first quarter of 2013 decreased by 12%. 

Sales volumes in the Meat Processing division increased by 1% to approximately 29,442 tonnes in the first quarter of 2013 from 29,115 tonnes for the first quarter of 2012. 

Prices in dollar terms increased by 2% from $4.75/kg in the first quarter of 2012 to $4.84/kg in the first quarter of 2013. Compared to the price in the fourth quarter of 2012 of $4.95/kg, the price in the first quarter of 2013 decreased by 2%. 

Prices in ruble terms increased by 2% from 143.82 rubles/kg in the first quarter of 2012 to 147.16 rubles /kg in the first quarter of 2013. Compared to the price in the fourth quarter of 2012 of 153.76 rubles/kg, the price in the first quarter of 2013 decreased by 4%. 

Sales volumes in the Grain division increased by 43% to 8,438 tonnes in the first quarter of 2013 from 5,905 tonnes for the first quarter of 2012. 

Prices in dollar terms increased by 47% from $0.19/kg in the first quarter of 2012 to $0.28/kg in the first quarter of 2013. Compared to the price in the fourth quarter of 2012 of $0.28/kg, the price in the first quarter of 2013 was flat. 

Prices in ruble terms increased by 49% from 5.65 rubles/kg in the first quarter of 2012 to 8.45 rubles/kg in the first quarter of 2013. Compared to the price in the fourth quarter of 2012 of 8.71 rubles/kg, the price in the first quarter of 2013 decreased by 3%. 

In April, the Grain division started to prepare for the season and plans to complete sowing until May. The Company plans to sow about 40,000 hectares of arable land in current agricultural season, including 25,000 hectares under spring crops (wheat, barley, corn, and oats) and about 15,000 hectares under the winter crops. 

Cherkizovo Group, a vertically integrated meat producer and processor, includes seven integrated poultry farming complexes, 14 pig farming complexes, six meat processing plants, six formula feed plants, elevators and more than 100,000 hectares of agricultural land. The group is controlled by Igor Babayev and members of his family. 

Cherkizovo Group closed 2012 with US GAAP net profit up 66% to $255.2 million on revenue up 7% to $1.582 billion. Adjusted EBITDA rose 29% to $314.6 million and the EBITDA margin increased to 20% from 17%.