IR-Center Handelsblatt
Unternehmenssuche:

Cherkizovo Group

News Detail

DGAP-UK-Regulatory News vom 27.07.2017

Cherkizovo Group announces operating results for the first half of 2017

Cherkizovo Group / Miscellaneous - High Priority

27-Jul-2017 / 09:00 CET/CEST
Dissemination of a Regulatory Announcement, transmitted by EquityStory.RS, LLC - a company of EQS Group AG.
The issuer is solely responsible for the content of this announcement.


Cherkizovo Group Announces Operating Results
for the First Half of 2016

 

Moscow, Russia - 27 July 2017 - PJSC Cherkizovo Group (LSE: CHE; MOEX: GCHE), the largest vertically integrated meat and feed producer in Russia, today announces operating results for the first half of 2017.

 

Key Operating Results

Sales volume by business segments, tonnes

Divisions

1H 2017

1H 2016

Y-o-Y change, %

Poultry

                 254,911

                 252,351

  1%

Pork

                  98,369

                  86,902

  13%

Meat Processing

                 107,314

                 102,898

  4%

 

Poultry Division

First half sales volumes increased by 1% year-on-year to 254,911 tonnes of sellable weight (1H 2016: 252,351). This modest uptick was due to growth in production, leading to increased output volumes. The average price during the first half of 2017 increased by 1% year-on-year to 91.15[1] RUB/kg as a result of an increase in brand name sales by 2% and HoReCa sales by 1% compared to the first half of 2016. The implementation of a new trade law limiting retroactive bonuses also had an impact on the first half average price. On a quarter-on-quarter basis, the average price decreased by 3% to 89.93 RUB/kg, due to the decrease in bonuses to retail chains, resulting in a negative impact on average prices.

 

 

1H
2017

1H
2016

Change
Y-o-Y, %

2Q
2017

1Q
2017

Change
Q-o-Q, %

Volume, tonnes

254,911

252,351

1%

129,361

125,550

3%

Average price, RUB/kg

91.15

90.06

1%

89.93

92.40

(3%)

 

Pork Division

Production volumes in the first half of the year increased by 13% year-on-year to 98,369 tonnes (1H 2016: 86,902 tonnes). This was due to higher production levels following the launch of two new wean-to-finish sites in Voronezh in 2016, as well as the ongoing genetics improvement strategy launched in 2014. The average price rose by 13% year-on-year to 94.02 RUB/kg (1H 2016: 83.20 RUB/kg). This increase was driven by growing consumption in Russia, which has been fuelled by increased promotional activity by Russian retail chains, along with a stabilisation in the purchasing power of consumers.

 

 

1H
2017

1H
2016

Change
Y-o-Y, %

2Q
2017

1Q
2017

Change
Q-o-Q, %

Volume, tonnes

98,369

86,902

13%

53,391

44,978

19%

Average price, RUB/kg

94.02

83.20

13%

97.22

90.23

8%

 

Meat Processing Division

Sales volumes increased by 4% year-on-year to 107,314 tonnes from 102,898 tonnes in the first half of 2016. This was due to the growth in product assortment in the modern retail channel and geographical diversification to the Ural and North West regions. During the reporting period, the average price fell by 7% year-on-year to 153.65 RUB/kg as a result of the new trade law limiting retroactive bonuses. The decrease in bonuses to retail chains had a negative effect on prices.

 

 

1H
2017

1H
2016

Change
Y-o-Y, %

2Q
2017

1Q
2017

Change
Q-o-Q, %

Volume, tonnes

107,314

102,898

4%

56,835

50,479

13%

Average price, RUB/kg

153.65

164.42

(7%)

152.51

154.94

(2%)

 

Grain Farming Division

Due to the seasonality of this business, results of this segment are reported annually to better reflect the business performance and provide an appropriate basis for comparison.

 

 

For more information please visit www.cherkizovo.com or contact

Cherkizovo Group

Dmitry Mironov

Head of Investor Relations

+7 (495) 660 24 40 ext. 15962

[email protected]

 

 

About Cherkizovo Group

Cherkizovo Group is the largest meat and feed producer in Russia. The Group is a top-3 producer in the poultry, pork and processed meat markets and is the largest feed manufacturer in the country.

 

Cherkizovo Group encompasses eight full cycle poultry production facilities, 15 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 2016, Cherkizovo Group produced 903,000 tonnes of meat products.

 

Thanks to its vertically integrated structure, which includes grain growing and storage, feed production, livestock breeding, fattening and slaughtering, and meat processing, alongside a distribution system, the Group has consistently delivered stable, long-term sales growth and profitability. The Group's consolidated revenue reached RUB 82.4 billion in 2016.

 

Cherkizovo Group shares are traded on the London Stock Exchange (LSE) and on the Moscow Exchange (MOEX).


[1] Here and below, all average prices exclude VAT 



The EquityStory.RS, LLC Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
Archive at www.dgap.de/ukreg



show this