Russian meat producer Cherkizovo has said that it recorded sales volumes of 1.45 million tonnes in 2017, representing an increase of 16.5% compared to the previous year.
Although the company's poultry division continued to perform well, annual results were boosted by a significant increase in the group's grain unit, as well as its new turkey business.
Overall, growth was seen across all existing business segments, including chicken (+4%), pork (+15%), meat processing (+9%), and grain farming (+33%).
Annual Performance
Poultry sales volumes increased by 4% to 522,500 tonnes in 2017, driven by improvements in a number of operational metrics across core assets, according to Cherkizovo.
Meanwhile, pork production volumes were up by 15% to 211,750 tonnes, boosted by a fourth-quarter increase, and the launch of new facilities over the last two years.
Sales volumes from the group's meat processing division grew 9% to 236,638 tonnes, driven by the group's increase of market share in retail chains, and its expanded offering of branded sausages and pork-meat products.
The highest increase was seen in Cherkizovo's grain farming division, positively impacted by its acquisition of grain producer NAPKO last year. However, average sales price declined by 21% in 2017, reflecting elevated levels of supply on the domestic market.
In 2016, Cherkizovo's consolidated revenue was RUB 82.4 billion, but that figure is set to rise this year.
The group operates eight poultry production facilities, 16 pork production plants, six meat processing plants, eight feed mills, and over 287,000 hectares of agricultural land.
© 2018 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.
