Russian meat producer Cherkizovo Group has posted a 1H 2011 net income of $66 million under US GAAP.
The bottom line is up 11 per cent year-on-year from the 1H 2010 of $74.1 million, with 1H adjusted EBITDA decreased 6 per cent year-on-year to $105.7 million from $113.0 million in the 1H of 2010 falling, despite 1H revenues rising 20 per cent year-on-year to $689.1 million from $572.8 million in the 1H 2010.
The 1H results included a 2Q 2011 net profit of $48.3 million which is 15 per cent up to from $42.1 million posted for 2Q 2010, with Adjusted EBITDA also up 12 per cent to $71.6 million from $63.4 million in 2Q 2010 on the back of 2Q 2010 strong revenue growth of 24 per cent to $382.5 million from $307.6 million in the 2Q of 2010.
Cherkizovo CEO, Sergey Mikhailov, said that graduate organic volume growth and solid financial performance supported by increasing demand will continue supporting the group’s operational efficiency.
“Despite the challenging operating environment at the beginning of this year, we have delivered a strong set of results across all segments in the first half of 2011, significantly improving our performance in the second quarter driven by an improving pricing environment, rising demand and continued cost efficiencies. Moreover, we have confirmed our status as the most active player on the Russian meat market through the acquisition of Mosselprom, one of Russia’s best-known poultry producers. Furthermore, we have started construction of the country’s largest poultry production complex in the Lipetsk region.”
Mikhailov added that government support and extensive production expansion has helped to meet growing demand and maintain high-quality production.
“Already this year, we opened two large poultry production facilities in our Bryansk and Penza clusters and an incubation site in Bryansk, while we plan to launch a processing facility and another incubation facility in Penza which will be amongst the largest not just in Russia, but across Europe. We also welcome the government’s recent decision to offer direct subsidies to offset sharp cost increases, and allow domestic producers to continue developing quality local products, despite the difficult trading conditions.”
Petelinka, one of Cherkizovo Group’s flagship brands and the best-selling chicken product, has entered into partnership with the iconic GUM Ice Rink, which opens annually on Red Square. This year, visitors will have an opportunity to take a break in the cozy Petelinka cottage and take photos next to a Christmas tree standing on chicken legs.
Cherkizovo Group employees have held a volunteer event supported by the Ray Foundation for Helping Homeless Animals. They brought food, medicines and other useful supplies to two Moscow shelters and helped with dog walking.
Cherkizovo Group’s chicken and turkey products have once again been awarded the annual Product of the Year title, with flagship brands Petelinka and Pava-Pava winning two categories of the award.
Cherkizovo Group, Russia's largest meat producer, is taking part in Our Brand, an international food festival in Ufa. The Company showcased its products during a tasting session at its stand.