Cherkizovo Group OJSC (LSE: CHE), Russia's leading integrated and diversified meat producer, today issues a trading update for the first half of 2012.
Poultry Division
Sales volumes in the Poultry division in the first half of 2012 increased by a robust 34% to approximately 158,345 tonnes of sellable weight compared to approximately 117,990 tonnes for the first half of 2011.
Prices for poultry sales in dollar terms decreased by 4% from $2.51 per kg in the first half of 2011 to $2.40 per kg in the first half of 2012 (excluding VAT)*, due to rouble weakening. Compared to the first quarter of 2012, the price in the second quarter was flat.
Prices in rouble terms increased by 3% from 71.79 RUR/kg in the first half of 2012 to 73.61 RUR/kg in the first half of 2012 (excluding VAT). Compared to the first quarter of 2012, the price in the second quarter increased by 3% from 72.50 to 74.67 RUR/kg.
Pork Division
Sales volumes in the Pork division in the first half of 2012 increased by 14 % to 46,764 tonnes of live weight, compared to 41,070 tonnes in the first half of 2011.
In dollar terms, prices for pork sales decreased by 2% from $2.70 per kg of live weight in the first half of 2011 to $ 2.65 per kg of live weight in the first half of 2012 (excluding VAT)*, due to rouble weakening. Compared to the first quarter of 2012, the price in the second quarter was almost flat.
Prices in rouble terms increased by 5% from 77.41 RUR/kg in the first half of 2011 to 81.32 RUR/kg in the first half of 2012 (excluding VAT). Compared to the price in the first quarter of 2012 of 80.53 RUR/kg, the price in the second quarter increased by 2% to 82.06 RUR/kg.
Meat Processing Division
Sales volumes decreased by 11% to 62,105 tonnes from 70,097 tonnes for the first half of 2011. The decrease was predominantly due to the closure of an inefficient slaughtering facility in southern Russia.
Prices in dollar terms increased by 5 % from $4.47 per kg in the first half of 2011 to $4.70 per kg in the first half of 2012 (excluding VAT)*. Compared to the first quarter of 2012, the price in the second quarter decreased by 2% from $4.75 to $4.66 per kg, due to rouble weakening.
Prices in rouble terms increased by 13% from 127.98 RUR/kg in the first half of 2011 to 144.11 RUR/kg in the first half of 2012 (excluding VAT). Compared to the price in the first quarter of 143.82 RUR/kg, the price in the second quarter of 2012 was almost flat.
Cherkizovo Group (LSE:CHE) is the largest meat manufacturer in Russia, with 2011 revenues of circa USD 1.5 billion. It is also one of the top three companies serving Russia’s poultry, pork and meat processing markets. Due to its vertically integrated structure that includes grain storage facilities, feed production, livestock breeding, growing and slaughtering as well as meat processing and integrated distribution, Cherkizovo has consistently delivered sustainable revenue and profit growth. Cherkizovo’s strategy includes both organic growth and investment in new projects, driving the consolidation of the Russian meat market. Cherkizovo shares are quoted on the LSE and RTS/MICEX.
* For price calculation in dollar terms the Company used the average exchange rate for 1H2012 of 30.64 roubles per 1 US Dollar, and 31.01 roubles per 1 US Dollar in the second quarter of 2012; for 1H2011 the average rate was 28.62 roubles per 1 US Dollar.
Source: newsroom - meattradenewsdaily.co.uk
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