Sales in the Poultry segment at Cherkizovo Group in the first half of 2012 increased by 34% and amounted to 158,345 tonnes of poultry meat in carcass weight compared to 117,990 tonnes in the first half of 2011. As a result of the weakening rouble, the average selling price in the Poultry segment decreased by 4% in dollar terms – from 2.51 dollars in the first half of 2011 to 2.4 dollars in the same period of the current year.
Production volumes in the Pork segment in the first half of the current year increased by 14% to 46, 764 tonnes of live weight pork, whereas in the first half of 2011 volumes were at the level of 41, 070 tonnes. The average selling price of pork decreased by 2% – from 2.70 dollars/kg in live weight in the first half of 2011 to 2.65 dollars/kg in the first half of 2012 as a result of the weakening of the rouble. Sales in the Meat Processing segment decreased by 11% in the reporting period to 62, 105 tonnes.
According to experts at FG BCS, poultry meat production appears to be at the level benchmarked by the company for 2012. The rate of average price growth for pork has exceeded the experts’ forecasts, thereby offsetting the weak production dynamics in this segment.
“Overall, we find the results mixed: growth in total revenue was slightly worse than the forecasted values for the year. However, higher average prices for pork and products in the Meat Processing segment should have a positive impact on gross margin rates and on EBITDA margin at Cherkizovo”, said the specialists.
Analysts at Troika Dialogue think that Cherkizovo Group announced good operating results for the first half of 2012. “The continued growth in pork prices implies the possibility of exceeding profitability forecasts in the first half of 2012. But the market is more interested in the second half of the current year, when implications of Russia's entry into the WTO and growth in food expenditure will feature. Given the sharp increase in world prices for pork and the weakening of the rouble, Russia's accession to the WTO should, in our opinion, not lead to a significant fall in prices on the domestic market. However, the 35% per annum rise in grain prices, may impact the company’s profitability in the fourth quarter of 2012. We still have a positive attitude towards Cherkizovo Group, but the continuing uncertainty about the dynamics of profitability may deprive the company's shares of growth in the medium-term”, concluded the experts.
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.