Russian Cherkizovo Group annouced 2017 results

Russian Cherkizovo Group annouced 2017 results

Cherkizovo Group is the largest meat producer in Russia. The Group is a top-3 producer in each of the Russian poultry, pork and processed meat markets, reports operating results for 12 months to December of 2017, with the poultrymeat and pork sector proving most productive. The positive results of the group are over all business segments around plus 9%, the chicken segment rose 4%, the pork segment 15% and the processed meat segment 9%.

Poultry Division
Sales volumes in 2017 increased by 4% y-o-y to 522,500 tonnes from 500,321 tonnes in 2016, with similar growth dynamics in 4Q17 vs. 3Q17 – up 5% q-o-q to 137,123 tonnes. The growth was driven by improvement in a number of operational metrics across core assets of the division.

Pork Division
Production volumes in 2017 increased by 15% y-o-y to 211,750 tonnes (2016: 184,766 tonnes), while 4Q17 production volumes were up 25% q-o-q and amounted to 63,028 tonnes vs. 50,353 tonnes in 3Q17. Positive dynamics both on the y-o-y and q-o-q basis is attributed to the launch of new wean-to-finish facilities that the Group completed and populated over the course of the last two years, and constant enhancement in our production metrics driven by our long term genetics improvement and animal health programs launched in prior years.

Meat Processing Division
Sales volumes in 2017 increased by 9% y-o-y to 236,638 tonnes from 218,085 tonnes in 2016, in 4Q17 volumes increased by 15% q-o-q to 69,293 tonnes. Main drivers of growth are Group’s increase of the market share in modern retail chains and further growth of our branded offering of sausages and pork meat products.

Cherkizovo Group encompasses eight full cycle poultry production facilities, 16 modern pork production facilities, six meat processing plants, eight feed mills and more than 287,000 hectares of agricultural land. The Group also includes Tambov Turkey facility, a joint Russian-Spanish venture. In 2017, Cherkizovo Group produced 1 million tonnes of meat and meat products.

Source: Cherkizovo Group