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Cherkizovo Group (CHE)
Cherkizovo Group Announces Operating Results for 3Q and 9M 2017
26-Oct-2017 / 09:59 CET/CEST
Dissemination of a Regulatory Announcement that contains inside information
according to REGULATION (EU) No 596/2014 (MAR), transmitted by EQS Group.
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Cherkizovo Group Announces Operating Results for 3Q and 9M 2017
Moscow, Russia - 26 October 2017 - Cherkizovo Group (LSE: CHE; MOEX: GCHE),
the largest vertically integrated meat and feed producer in Russia, today
announces operating results for the nine months ended 30 September 2017.
Key Operating Results
Sales volumes by business segments, tonnes
Divisions 9M 2017 9M 2016 Y-o-Y change, %
Poultry 385,373 372,070 4%
Pork 148,722 131,581 13%
Meat Processing 167,346 158,647 5%
Poultry Division
Sales volumes during 9M 2017 increased by 4% y-o-y to 385,373 tonnes of
sellable weight (9M 2016: 372,070), due to growth in production, as a result
of improved operating performance. The average price during the reporting
period increased by 1% y-o-y to 90.13[1] RUB/kg as a result of an increase
in value-added products and brand name sales by 18% and HoReCa sales by 1%.
On a quarterly basis, 3Q 2017 sales increased by 1% to 130,462 compared to
2Q 2017, due to growth in production. However, the average price during the
corresponding period decreased by 2% to 88.14 RUB/kg.
Poultry 9M 9M Change 3Q 2Q Change
2017 2016 Y-o-Y, % 2017 2017 Q-o-Q, %
Volume, 385,373 372,070 4% 130,462 129,361 1%
tonnes
Average 90.13 89.66 1% 88.14 89.93 (2%)
price,
RUB/kg
Pork Division
Sales volumes in 9M 2017 increased by 13% y-o-y to 148,722 tonnes (9M 2016:
131,581 tonnes). This was due to higher production levels following the
launch of two new wean-to-finish sites in Voronezh in 2016, one in 2017 and
two new wean-to-finish sites in Lipetsk this year, supported by the ongoing
genetics improvement programme launched in 2014. The average price rose by
8% y-o-y to 93.74 RUB/kg (9M 2016: 86.59 RUB/kg). Average price growth
during the period was attributable to the ongoing recovery in consumer
purchasing power as well as promotional activity by large retailers. During
3Q 2017, sales volumes decreased by 6% to 50,353 tonnes compared to the
previous quarter, due to exceptional growth in production volumes in the
absence of free space at the sites. At the same time, the average sales
price decreased by 4% q-o-q to 93.20 RUB/kg.
Pork 9M 9M Change 3Q 2Q Change
2017 2016 Y-o-Y, % 2017 2017 Q-o-Q, %
Volume, 148,722 131,581 13% 50,353 53,391 (6%)
tonnes
Average 93.74 86.59 8% 93.20 97.22 (4%)
price,
RUB/kg
Meat Processing Division
Sales volumes increased by 5% y-o-y to 167,346 tonnes from 158,647 tonnes
during 9M 2017. Growth was associated with a further increase in the share
of sales of Cherkizovo Group products in the modern food retail format, in
particular in the categories of sausage products and meat semi-finished
products. During the reporting period, the average net price increased by 3%
y-o-y to 150.19 RUB/kg resulting from an improvement in the product mix and
an increase in the share of premium segment sales. On a q-o-q basis, sales
volumes increased by 6% in the 3Q 2017 to 60,032 tonnes. Nevertheless, the
average net price increased by 1% q-o-q to 150.34 RUB/kg due to a more
balanced product mix.
Meat 9M 9M Change 3Q 2Q Change
Processi 2017 2016 Y-o-Y, % 2017 2017 Q-o-Q, %
ng
Volume, 167,346 158,647 5% 60,032 56,835 6%
tonnes
Average 150.19 145.16 3% 150.34 148.92 1%
price,
RUB/kg
Grain Farming Division
Due to the seasonality of this business, the 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 http://www.cherkizovo.com [1] or contact
Cherkizovo Group
Irina Kravets,
PR Manager,
+7 (495) 660 2440 ext. 15171,
i.kravets@cherkizovo.com [2]
About Cherkizovo Group
Cherkizovo Group is the largest meat and feed producer in Russia. The Group
is a top-3 producer in each of the Russian 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 and 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 delivered long-term sales growth and profitability. The Group's
consolidated revenue was RUB 82.4 billion in 2016.
Cherkizovo Group shares and GDRs are traded on the Moscow Exchange (MOEX)
and the London Stock Exchange (LSE).
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[1] Here and below, all average prices exclude VAT
ISIN: US1641452032
Category Code: MSCH
TIDM: CHE
LEI Code: 2534005AEG6WJ1WNUF73
Sequence No.: 4785
End of Announcement EQS News Service
622823 26-Oct-2017
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(END) Dow Jones Newswires
October 26, 2017 03:59 ET (07:59 GMT)
