Dow Jones received a payment from EQS/DGAP to publish this press release.
Cherkizovo Group (CHE)
Cherkizovo Group Announces 2017 Operating Results
29-Jan-2018 / 16:00 CET/CEST
Dissemination of a Regulatory Announcement that contains inside information
according to REGULATION (EU) No 596/2014 (MAR), transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.
Cherkizovo Group Announces 2017 Operating Results
Moscow, Russia -January 29, 2018- Cherkizovo Group (LSE: CHE; MOEX: GCHE),
the largest vertically integrated meat producer in Russia, today announces
operating results for the twelve months ended 31 December 2017.
Key Operating Results
Volumes by business segments, tonnes
Divisions 2017 2016 Y-o-Y change, %
Poultry
Chicken 522,500 500,321 4%
Turkey 26,835
Pork 211,750 184,766 15%
Meat Processing 236,638 218,085 9%
Grain Farming 449,215 338,808 33%
Poultry Division
Sales volumes in 2017 increased by 4% y-o-y to 522,500 tonnes from 500,321
tonnes in 2016, with similar growth dynamics in 4Q17 vs. 3Q17 - up 5% q-o-q
to 137,123 tonnes. The growth was driven by improvement in a number of
operational metrics across core assets of the division.
In 2017 the average selling price declined by 4% y-o-y to 88.84 RUB/kg
mostly due to the higher base effect of 2016 and low summer season. In the
4Q17 average selling price declined by 3% q-o-q to 85.20 RUB/kg.
Our turkey facility in Tambov reached full capacity of 45,000 tonnes/year in
October 2017 with sales of 10,009 tonnes in 4Q17. The average sales price
for turkey products amounted to 145.24 RUB/kg in 2017 and 129.03 RUB/kg in
4Q17 respectively.
Poultry 2017 2016 Change 4Q 3Q Change
Y-o-Y, % 2017 2017 Q-o-Q, %
Chicken
Volume, tonnes 522,500 500,321 4% 137,123 130,462 5%
Average price, 88.84 92.22 (4%) 85.20 88.14 (3%)
RUB/kg*
Turkey
Volume, tonnes 26,835 10,009
Average price, 145.24 129.03
RUB/kg
* All prices in the release are ex VAT
Pork Division
Production volumes in 2017 increased by 15% y-o-y to 211,750 tonnes (2016:
184,766 tonnes), while 4Q17 production volumes were up 25% q-o-q and
amounted to 63,028 tonnes vs. 50,353 tonnes in 3Q17. Positive dynamics both
on the y-o-y and q-o-q basis is attributed to the launch of new
wean-to-finish facilities that the Group completed and populated over the
course of the last two years, and constant enhancement in our production
metrics driven by our long term genetics improvement and animal health
programs launched in prior years.
In 2017 the average selling price increased by 3% y-o-y to 90.77RUB/kg
mostly due to the increased purchasing power of domestic consumer. In 4Q17
average selling price declined by 10% q-o-q to 83.75 RUB/kg.
Pork 2017 2016 Change 4Q 3Q Change
Y-o-Y, % 2017 2017 Q-o-Q,
%
Volume, tonnes 211,750 184,766 15% 63,02 50,353 25%
8
Average price, 90.77 88.28 3% 83.75 93.2 (10%)
RUB/kg
Meat Processing Division
Sales volumes in 2017 increased by 9% y-o-y to 236,638 tonnes from 218,085
tonnes in 2016, in 4Q17 volumes increased by 15% q-o-q to 69,293 tonnes.
Main drivers of growth are Group's increase of the market share in modern
retail chains and further growth of our branded offering of sausages and
pork meat products.
In 2017 the average selling price remained flat compared to previous year
and amounted to to 147.65 RUB/kg. Average price was supported by our efforts
in increasing value added products in the sales mix. In the 4Q17 average
selling price declined by 6% q-o-q to 141.51RUB/kg.
Meat Processing 2017 2016 Change 4Q 3Q Change
Y-o-Y, % 2017 2017 Q-o-Q,
%
Volume, tonnes 236,638 218,085 9% 69,293 60,032 15%
Average price, 147.65 147.00 0% 141.51 150.34 (6%)
RUB/kg
Grain Farming Division
In 2017 sales volumes in the segment were positively impacted by NAPKO
consolidation. Average sales price in 2017 declined by 21% y-o-y to
7.01RUB/kg reflecting elevated levels of supply on the domestic market.
Grain Farming 2017 2016 Change
Y-o-Y, %
Volume, tonnes 449,215 338,808 33%
Average price, RUB/kg 7.01 8.83 (21%)
For more information please visit http://www.cherkizovo.com [1] or contact
Anatoliy Vereschagin
Managing Partner
Progress Communications Agency
+7 965 334 34 34
av@progresspr.ru
About Cherkizovo Group
Cherkizovo Group is the largest meat producer in Russia. The Group is a
top-3 producer in each of the Russian poultry, pork and processed meat
markets.
Cherkizovo Group encompasses eight full cycle poultry production facilities,
16 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 2017,
Cherkizovo Group produced c.1 million 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).
ISIN: US1641452032
Category Code: FR
TIDM: CHE
LEI Code: 2534005AEG6WJ1WNUF73
Sequence No.: 5148
End of Announcement EQS News Service
649353 29-Jan-2018
1: http://public-cockpit.eqs.com/cgi-bin/fncls.ssp?fn=redirect&url=4b23a144f425936dbdec548cd907e59a&application_id=649353&site_id=vwd&application_name=news
(END) Dow Jones Newswires
January 29, 2018 10:00 ET (15:00 GMT)
