Russian meat producer Cherkizovo Group has reported that revenue increased by 12% to RUB 43.3 billion in the first half of 2017.
The company's gross profit increased by 58% year-on-year to RUB 12.9 billion, while net profit grew five-fold compared to the same period last year, reaching RUB 5.1 billion.
Adjusted EBITDA was RUB 8 billion, up from RUB 2.7 billion in the first half of 2016, and earnings per share grew to RUB 116.4.
Group Progress
"We were very pleased to see progress broadly across the whole business," said Sergei Mikhailov, CEO of Cherkizovo. "In the meat-processing segment, we continued to gain share, despite a shrinking market."
"The pork segment made a significant contribution to growth, delivering year-on-year EBITDA growth of 148%, driven by an increase in volumes and average price. We also made major progress in the poultry segment during the first half adding capacity and improving margins."
During the first half of the year, the group acquired grain producer Napko, and has been working on a joint venture with Spain's Grupo Fuertes to boost turkey production.
Outlook
Cherkizovo has announced its intention to expand in the Voronezh region, and has already begun construction on two pork plants. It has also outlined expansion plans for the Lipetsk and Penza regions.
The group remains optimistic about the second half of 2017, and prospects for 2018. It said that the stronger ruble compared to major foreign currencies continues to drive lower feed prices, keeping meat prices lower, while an on-going recovery in Russian consumer spending should support continued profitability.
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Sarah Harford. Click subscribe to sign up to ESM: The European Supermarket Magazine.
