Cherkizovo Group OJSC reports 2013 results

by Editor
Friday, March 14, 2014
Photo: Cherkizovo Group

Cherkizovo Group, Russia's largest integrated and diversified meat producer, had reported the full-year audited financial results for the period ending 31 December 2013.

These are the highlights of the report:

● Revenues increased by 8% in roubles, and increased by 5% on a US-Dollar basis to $1,654.9 mill. in 2013 from $1,570.3 mill. in 2012. Revenues increased by 6% to $460.0 mill. in the fourth quarter of 2013 from $433.0 mill. for the fourth quarter of 2012, and increased by 11% on a rouble currency basis.

● Gross profit decreased by 19% in roubles, and decreased by 21% on a US-Dollar basis to $358.4 mill. in 2013 from $452.8 mill. for 2012. Gross profit in the fourth quarter of 2013 decreased by 1% to $118.2 mill. from $119.3 mill. in the fourth quarter of 2012, and increased by 4% on a rouble currency basis.

● Large scale projects aimed to double capacity at the Bryansk and Penza clusters were completed. As a result of these RUR7.5 bill. investments, Bryansk cluster capacity increased from 35 000 to 85 000 t p.a., Penza cluster capacity increased from 60 000 to 125 000 t p.a. (liveweight).

● Construction is underway of new broiler farms in the Moscow and Lipetsk regions. These farms will become operational in 2014.

● Petelinka brand recognized as "The Product of the Year"; new marketing campaigns and branding initiatives helped to increase the share of branded poultry products in sales.

● All new pork complexes are fully stocked with sows and fully operational. The company had increased number of piglets born by 500000 with the same number of sows as in 2012.

● Cherkizovo became Russia's second largest pork producer, increasing its sales of live hogs by 50%.

● The company installed a new semi-cooked products line"Cherkizovo Express" worth $20 mill. on its Moscow CHMPZ plant.

● The company reconstructed the slaughtering facility at Penza plant, increasing its meat storage capacity threefold and its livestock storing capacity twofold.

● Cherkizovo acquired Dankov meat processing plant and slaughter house in the Lipetsk region