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All news / Cherkizovo Group announces operating results for the June and second quarter of 2018

  • 10 Jul 2018, 10:22

Cherkizovo Group (MOEX: GCHE), the largest vertically integrated meat producer in Russia, today announces operating results for the June and second quarter of 2018.

 

Second Quarter 2018 Highlights

Chicken: Sales volumes of 130.98 thousand tonnes declined 5% compared to the previous quarter and were flat compared to 2Q17. Significant average sales price growth, compared to the previous quarter and year-on-year results, is attributed to the chicken market being undersupplied with lower deliveries from some domestic producers, and the positive effect from our Petelinka and Chicken Kingdom branded products quickly gaining market share on key markets.

Turkey: JV Tambov Turkey increased volumes in 2Q18, both compared to the previous quarter and 2Q17 results. A higher share of branded value-added products in the sales mix resulted in an average price rising 16% compared to the previous quarter, however, down 13% compared to 2Q17.

Pork: Production and sales volumes remained on par with the previous quarter, while up 8% compared to 2Q17 results, as we further ramped up production at newly built facilities. Prices were up 21% compared to the previous quarter, as the pork market finally cleared accumulated inventory of the Brazilian meat, banned for import at the end of 2017; and remained flat compared to 2Q17.

Meat Processing: Sales volumes were up compared both to the previous quarter and 2Q17 results due to a higher level of pork production that in turn led to an increase in carcass sales. Higher sales volumes of dry and semi-smoked sausages are responsible for average sausages prices growth, while cuts and carcass prices dynamics were in line with live pork prices.

Grain: Due to the seasonal nature of the business, results of this segment are reported annually to better reflect business performance.

Monthly performance

 

June 18

June 17

Change % y-o-y

May 18

Change % m-o-m

 
 

 

 

 

 

 

 

 

Chicken

 

 

 

 

 

 

Volume sold, thousand tonnes

    42.55  

    41.97  

1%

    44.81  

(5%)

 

Average price, RUB/kg

    98.85  

    89.63  

10%

    91.80  

8%

 

 

 

 

 

 

 

 

Turkey*

 

 

 

 

 

 

Volume sold, thousand tonnes

      3.70  

      2.33  

59%

      3.65  

1%

 

Average price, RUB/kg

  137.39  

  152.44  

(10%)

  132.51  

4%

 

 

 

 

 

 

 

 

Pork**

 

 

 

 

 

 

Volume produced, thousand tonnes

    17.60  

    17.85  

(1%)

    21.65  

(19%)

 

Volume sold, thousand tonnes

    16.85  

    17.14  

(2%)

    20.54  

(18%)

 

Average price, RUB/kg

  100.11  

    95.50  

5%

    99.17  

1%

 

 

June 18

June 17

Change % y-o-y

May 18

Change % m-o-m

 
 

 

 

 

 

 

 

 

Meat Processing

 

 

 

 

 

 

Volume, thousand tonnes

    19.49  

    15.84  

23%

    19.70  

(1%)

 

Sausages

      8.88  

      9.33  

(5%)

      9.17  

(3%)

 

Cuts

      3.06  

      4.22  

 (27%)

      3.46  

(12%)

 

Carcass

      6.61  

      1.69  

291%

      6.34  

4%

 

By-products

      0.94  

      0.61  

54%

      0.73  

29%

 

Average price, RUB/kg

  165.72  

  169.46  

(2%)

  166.31  

(0%)

 

Sausages

  182.37  

  170.61  

7%

  176.87  

3%

 

Cuts

  196.87  

  195.02  

1%

  199.15  

(1%)

 

Carcass

  145.58  

  140.85  

3%

  145.38  

0%

 

By-products

    47.83  

    53.96  

(11%)

    59.34  

(19%)

 

 

Quarterly performance

 

2Q 18

2Q 17

Change % y-o-y

1Q 18

Change % q-o-q

 
 

 

 

 

 

 

 

 

Chicken

 

 

 

 

 

 

Volume sold, thousand tonnes

  130.98  

  129.36  

1%

  137.55  

(5%)

 

Average price, RUB/kg

    93.12  

    89.93  

4%

    82.07  

13%

 

 

 

 

 

 

 

 

Turkey*

 

 

 

 

 

 

Volume sold, thousand tonnes

    10.56  

      6.10  

73%

      9.74  

8%

 

Average price, RUB/kg

  134.36  

  154.50  

(13%)

  116.02  

16%

 

 

 

 

 

 

 

 

Pork**

 

 

 

 

 

 

Volume produced, thousand tonnes

    57.65  

    53.40  

8%

    57.52  

0%

 

Volume sold, thousand tonnes

    54.99  

    50.70  

8%

    54.84  

0%

 

Average price, RUB/kg

    98.46  

    98.70  

(0%)

    81.59  

21%

 

 

 

 

 

 

 

 

Meat Processing

 

 

 

 

 

 

Volume, thousand tonnes

    57.47  

    48.85  

18%

    53.06  

8%

 

Sausages

    26.79  

    27.86  

(4%)

    25.02  

7%

 

Cuts

    10.22  

    13.04  

(22%)

    11.41  

(10%)

 

Carcass

    17.76  

      5.81  

206%

    13.51  

31%

 

By-products

      2.69  

      2.14  

26%

      3.11  

(13%)

 

Average price, RUB/kg

  165.46  

  172.23  

(4%)

  155.29  

7%

 

Sausages

  178.07  

  171.73  

4%

  175.52  

1%

 

Cuts

  198.86  

  204.08  

(3%)

  179.27  

11%

 

Carcass

  144.23  

  146.06  

(1%)

  120.21  

20%

 

By-products

    53.41  

    55.59  

(4%)

    57.00  

(6%)

 

* Volume and prices reported in turkey section represent sales of the Trading Company “Cherkizovo”.

** Difference in the volume produced and volume sold in the pork segment is attributable to retained gilts replacement. Volumes sold include both intercompany and 3rd party sales.

Volume data is presented before intersegment eliminations and denotes to sales volumes except noted (**).

All prices in the release are net of sales volume discounts and VAT.