bool(true)
Ru

RUSSIA: Cherkizovo Q1 net income slumps on input cost hikes

24 may 2011
alt image

Russian meat processor Cherkizovo saw net income decline during the first quarter of 2011 as it was hit by low selling prices and a sharp increase in input costs.

The group today (24 May) posted a 44% decline in net income to RUB537.2m (US$18.9m), despite sales increasing 14% to RUB9.02bn.

CEO Sergey Mikhailov insisted the first quarter was "a very challenging period for all domestic producers" in Russia.

"This was due to a combination of especially low prices for our products caused by an increased level of imports late last year, and sharply rising input costs, as the full effect of increased grain costs impacted our poultry segment."

However, he added that towards the end of the first quarter and going into the second quarter, "poultry prices recovered and this trend is continuing".

Mikhailov said the group is making "solid progress" in its projects to increse poultry capacity. "This is already reflected in our sales volumes for the poultry division, and we are on track to provide significantly higher output from 2011, which is also supported by our recent launch of the poultry sites in Bryansk and Penza."

He said Cherkizovo's pork operations were delivering volume growth including operations at acquired farms, "while demand for our meat processing products has also remained strong".

Mikhailov expects profitability to "return to normalised levels" in the second half as cost pressures decrease and that the company will meet expectations for the full-year.

Back to the news list

Other news

image
Cherkizovo notches 21 gold medals at Prodexpo 2024
alt
16 february 2024

Cherkizovo notches 21 gold medals at Prodexpo 2024

Cherkizovo Group, Russia’s largest meat producer, took part in the Prodexpo 2024 international exhibition where its Petelinka, Cherkizovo, Cherkizovo Premium and Latifa brands won 21 gold medals.
Cherkizovo Group to establish an industry department at Skryabin Moscow State Academy of Veterinary Medicine and Biotechnology
alt
12 february 2024

Cherkizovo Group to establish an industry department at Skryabin Moscow State Academy of Veterinary Medicine and Biotechnology

Cherkizovo Group, Russia’s largest meat producer, has agreed to establish an industry department at Skryabin Moscow State Academy of Veterinary Medicine and Biotechnology.
HeadHunter rates Cherkizovo Group as best employer in agricultural sector
alt
06 february 2024

HeadHunter rates Cherkizovo Group as best employer in agricultural sector

Cherkizovo Group, Russia’s leading meat producer, has been recognized as one of the country’s top employers in the 2023 annual ranking by HeadHunter. The Company earned the 28th spot on the list. Over the past year, the Group has made significant strides in the rating, moving up 14 positions to become No. 1 employer in the agricultural sector.
Cherkizovo participates in the Made in Russia festival in China
alt
31 january 2024

Cherkizovo participates in the Made in Russia festival in China

Cherkizovo Group, Russia’s largest meat producer, is taking part in the first Made in Russia festival organized by the Russian Export Center. On the festival’s first days, the Company held a series of meetings with potential partners – Chinese importers of poultry and pork meat. 

We use cookies to make our website work better.

By staying on this website, you agree to our use of cookies.