Cherkizovo Group, the largest vertically integrated meat producer in Russia, has announced its unaudited consolidated IFRS results for the first half of 2021.
The producer and processor of poultry and pork reported 20.6% year-on-year growth in revenue to RUB 39.8 billion (€460 million) in the period.
Included in the results is a breakdown of gross profit, which reached RUB 23.8 billion (€270 million), an increase of 27.4% compared to the previous year.
Adjusted EBITDA increased by 6.8% year-on-year to RUB 11.0 billion (€130 million). Adjusted EBITDA margin contracted to 15.1%, from 17.1% in 1H20.
Cherkizovo Group posted a net profit of RUB 13.4 billion, increased by 62.3% compared to 1H20. Adjusted net profit totalled RUB 5.4 billion, up 48.1% compared to the first half of 2020.
In the chicken segment, sales volumes in the first half of the year increased by 4.9% to 359,700 tonnes.
The average selling price increased by 23.9% year-on-year to RUB129.7 RUB per kilogram.
For pork, sales volumes declined by 35.0% year-on-year, to 64,300 tonnes, as the group withdrew volumes of live pigs and cut external sales of carcass in favour of further processing by RTE Meat processing segment.
Commenting on the results, CEO of Cherkizovo, Sergei Mikhailov, said, "In the first half of 2021, all of Cherkizovo Group's key financial indicators showed impressive growth, which is attributable primarily to a strong operating performance by the company and its Chicken segment in particular.
"This was partly thanks to stabilised poultry prices in the second quarter following the pressure from a sharp increase in prices for feed components (grain, soybean meal, other feed components, and packaging) seen in the first few months of the year. The majority of incremental sales were derived from products bearing company-owned brands in the retail, and customers in foodservice and export."
The company believes that exports will remain a key growth area for the business, which is growing across the globe despite the current public health concerns.
Mikhailov added, "In addition to already established sales in Asia, we've developed a steady supply of poultry to Saudi Arabia and broadened our geography with selected markets in Africa. Beyond this, we have been expanding supplies of sausage and consumer-packaged chicken products across the CIS."
The group recently made changes to its board of directors, with Olga Buryak and Alexei Skorobogatov both leaving the company.