Cherkizovo Group increased poultry sales by 22% and pork sales by 8% according to the company’s operating results for 2014 published today. The sizable increase in the company’s production is due to the purchase of Lisko Broiler in March 2014 (production after the merger was 58,000 t). At the same time, the price in rubles for the year increased by 18% to 90.7 RUB/kg (VAT exclusive). However, the price rose by only 2% to 100.86 RUB/kg in the fourth quarter compared to the third quarter.
Average annual ruble prices for pork also increased significantly — by 47% to 96.25 RUB/kg; however, the price decreased by 13% to 96.9 RUB/kg in the fourth quarter compared to the third quarter. The dollar price for pork increased by 22% to $2.51 in 2014, although it fell by 34% to $2.04 in the fourth quarter.
Sales in the company’s meat processing division rose by 7% to 144,189 t. The average selling price in rubles increased by 12% to 167.29 RUB/kg in 2014, and by 2% to 174.15 RUB/kg in the fourth quarter compared to the previous quarter.
In the grain division, the 2014 harvest was more than 242,000 t, or almost 40% higher than in 2013; sales rose by 70%, and the selling price increased by 20% to 7.21 RUB/kg. The price rose by 35% to 8 RUB/kg in the fourth quarter.
“Cherkizovo’s results were slightly above our expectations,” analysts at Rye, Man & Gor Securities said. They are forecasting net earnings of RUB 66 billion and EBITDA of RUB 15.4 billion after adjustment for Cherkizovo in 2014.