Cherkizovo Group Posts 37% Increase In 9M Gross Profit
Cherkizovo Group, which is the largest vertically integrated meat and feed producer in Russia, has said that its gross profit rose by 37% in the first nine months of its financial year, to RUB 17.8 billion, while revenue increased 12% to RUB 66.1 billion.
The group recently announced an expansion strategy, with plans to construct turkey-fattening sites in the Lipetsk region and extend production at LISKO Broiler in Voronezh.
It also reported a record winter wheat harvest campaign in September, harvesting almost 270,000 tonnes of winter wheat, and nearly doubling the amount of last year’s harvest of 140,000 tonnes.
Strength Of Recovery
”The Group’s performance this year to date has demonstrated the strength of the recovery of our business and our domestic and export markets beginning in late 2016,” commented Sergei Mikhailov, CEO of Cherkizovo.
“We saw stable financial and operational results in the third quarter, and year-to-date, the Group delivered solid top-line and robust bottom-line growth, despite increased competition from higher levels of domestic production. For the first nine months of the year, net profit jumped 158% reflecting continued internal operating improvements, the ongoing recovery of the Russian consumer sector and currency gains.”
Mikhailov added that the group’s pork and poultry segments made ‘sizable contributions’ to its EBITDA growth in the first nine months of the year.
“In the third quarter, we started to observe some downward trends in the pork and poultry markets,” he said. “We expect weakening of prices will affect our profitability in the short run; however, this trend is due primarily to seasonal factors. Nevertheless, our overall outlook remains positive.”
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: The European Supermarket Magazine.