Company update: Cherkizovo 2012 trading results
Russia's leading integrated and diversified meat producer, issues a trading update for the year ending 31 December 2012. The following is an update on the pork, poultry and grain divisions.
Sales volumes in the Pork division in 2012 increased by 14% to approximately 103,877 tonnes of live weight, compared to 91,400 tonnes in 2011.
Prices in rouble terms decreased by 4% from 80.04 RUR/kg in 2011 to 76.52 RUR/kg in 2012 (excluding VAT). Compared to the price in the third quarter of 2012, the price in the fourth quarter sharply decreased by 21% to 65.44 RUR/kg, reflecting an increased supply of live hogs to the market, and the influence of seasonal factors.
In dollar terms, prices for pork sales decreased by 10% from $2.72/kg of live weight in 2011 to $2.46/kg of live weight in 2012 (excluding VAT)*. Compared to the third quarter of 2012, the price in the fourth quarter decreased by 19% to $2.11/kg.
Sales volumes in the Poultry division in 2012 increased by 23% to approximately 319,210 tonnes of slaughter weight compared to 260,200 tonnes in 2011, reflecting organic volumes added in the Penza and Bryansk clusters and sales by Mosselprom, which was acquired in May 2011 and now is fully integrated.
Prices in rouble terms increased by 8% from 72.79 RUR/kg in 2011 to 78.62 RUR/kg in 2012 (excluding VAT). Compared to the third quarter of 2012, the price in the fourth quarter increased by 3% to 84.81 RUR/kg.
In 2012, Cherkizovo Group’s Grain division became a strong contributor to the results for the first time. Cherkizovo Group’s Grain division has reported a 2012 crop harvest of approximately 115,000 tonnes of agricultural products. The approximate current yields per hectare are: wheat: 3.4 tonnes; barley: 3.3 tonnes; sunflower: 2.6 tonnes; and corn: 6.1 tonnes.
Sales in the Grain division in 2012 amounted to 112,414 tonnes of agricultural products, including 51,254 tonnes of wheat, 24,594 tonnes of barley, 11,990 tonnes of corn, 12,000 tonnes of sunflower.
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