Cherkizovo Group (MOEX: GCHE), the largest vertically integrated meat producer in Russia, today announces operating results for September and the third quarter of 2019.[1]
Third quarter 2019 highlights:
Chicken: Sales volume of 164.5 thousand tonnes increased by 25% y-o-y, driven by volumes growth from the assets acquired in late 2018. Average sales price increase of 12% y-o-y is attributed to limited supply, lower base effect of the previous year, and further shift of the sales mix towards value-added products.
Turkey: JV Tambov Turkey sales volume of 11.0 thousand tonnes up 18% y-o-y, on inventory release accumulated in the first half of the year, and stronger demand for turkey products. Average sales price increased by 3% y-o-y as we further expanded Pava-Pava branded offering.
Pork: Production and sales volume increased by 12% and 13%, respectively, compared to 3Q18 as production facilities completed in 2018 have started harvesting market hogs. Prices declined by 16% y-o-y due to higher pork supply coming from domestic producers, while imports fell to negligible volumes, as Latin American producers re-routed shipments to Asia.
Meat Processing: Sales volume increased by 7% y-o-y, on the acceleration of sausages and carcass sales, up 8% and 28% respectively. Average sales price of the segment declined by 7%: sausages and cuts prices were unchanged compared to 3Q18, while carcass price eased by 14% y-o-y, in line with live pork prices.
Grain: Due to the seasonal nature of the business, the results of this segment are reported annually to better reflect business performance.
Monthly performance
|
|
September |
September |
Change % |
August 2019 |
Change % |
|
|
Chicken |
|
|
|
|
|
|
|
Volume sold, thousand tonnes |
52,86 |
41,54 |
27% |
51,41 |
3% |
|
|
Average price, RUB/kg |
110,79 |
103,21 |
7% |
114,04 |
(3%) |
|
|
Turkey* |
|
|
|
|
|
|
|
Volume sold, thousand tonnes |
3,54 |
2,86 |
24% |
3,64 |
(3%) |
|
|
Average price, RUB/kg |
167,27 |
161,19 |
4% |
165,53 |
1% |
|
|
Pork** |
|
|
|
|
|
|
|
Volume produced, thousand tonnes |
24,14 |
20,10 |
20% |
22,01 |
10% |
|
|
Volume sold, thousand tonnes |
23,14 |
19,48 |
19% |
21,45 |
8% |
|
|
Average price, RUB/kg |
85,62 |
115,42 |
(26%) |
92,95 |
(8%) |
|
|
Meat Processing |
|
|
|
|
|
|
|
Volume, thousand tonnes |
21,24 |
19,91 |
7% |
21,94 |
(3%) |
|
|
Sausages |
10,01 |
8,93 |
12% |
9,62 |
4% |
|
|
Cuts |
2,20 |
3,25 |
(32%) |
2,25 |
(2%) |
|
|
Carcass |
7,99 |
6,59 |
21% |
8,74 |
(9%) |
|
|
By-products |
1,03 |
1,14 |
(9%) |
1,33 |
(22%) |
|
|
Average price, RUB/kg |
157,99 |
180,87 |
(13%) |
160,38 |
(1%) |
|
|
Sausages |
180,41 |
188,91 |
(4%) |
181,35 |
(1%) |
|
|
Cuts |
218,17 |
228,53 |
(5%) |
221,12 |
(1%) |
|
|
Carcass |
127,77 |
168,01 |
(24%) |
139,82 |
(9%) |
|
|
By-products |
46,34 |
55,87 |
(17%) |
40,51 |
14% |
|
|
Samson*** |
|
|
|
|
|
|
|
Volume sold, thousand tonnes |
1,97 |
N/A |
- |
2,01 |
(2%) |
|
|
Average price, RUB/kg |
204,51 |
N/A |
- |
208,99 |
(2%) |
Quarterly performance
|
|
3Q 2019 |
3Q 2018 |
Change % |
2Q 2019 |
Change % |
|
|
Chicken |
|
|
|
|
|
|
|
Volume sold, thousand tonnes |
164,51 |
131,27 |
25% |
171,52 |
(4%) |
|
|
Average price, RUB/kg |
110,81 |
99,14 |
12% |
100,34 |
10% |
|
|
Turkey* |
|
|
|
|
|
|
|
Volume sold, thousand tonnes |
11,03 |
9,34 |
18% |
8,93 |
24% |
|
|
Average price, RUB/kg |
160,71 |
155,34 |
3% |
164,01 |
(2%) |
|
|
Pork** |
|
|
|
|
|
|
|
Volume produced, thousand tonnes |
66,76 |
59,37 |
12% |
67,04 |
(0%) |
|
|
Volume sold, thousand tonnes |
64,47 |
56,85 |
13% |
64,76 |
(0%) |
|
|
Average price, RUB/kg |
93,52 |
110,98 |
(16%) |
95,88 |
(2%) |
|
|
Meat Processing |
|
|
|
|
|
|
|
Volume, thousand tonnes |
63,70 |
59,35 |
7% |
61,47 |
4% |
|
|
Sausages |
29,30 |
27,23 |
8% |
25,38 |
15% |
|
|
Cuts |
6,73 |
9,67 |
(30%) |
9,49 |
(29%) |
|
|
Carcass |
24,46 |
19,10 |
28% |
23,24 |
5% |
|
|
By-products |
3,21 |
3,33 |
(4%) |
3,36 |
(5%) |
|
|
Average price, RUB/kg |
162,56 |
175,22 |
(7%) |
165,96 |
(2%) |
|
|
Sausages |
180,12 |
182,00 |
(1%) |
187,21 |
(4%) |
|
|
Cuts |
223,11 |
223,44 |
(0%) |
211,15 |
6% |
|
|
Carcass |
140,18 |
162,68 |
(14%) |
141,63 |
(1%) |
|
|
By-products |
45,75 |
51,84 |
(12%) |
46,10 |
(1%) |
|
|
Samson*** |
|
|
|
|
|
|
|
Volume sold, thousand tonnes |
5,74 |
N/A |
- |
4,80 |
20% |
|
|
Average price, RUB/kg |
207,73 |
N/A |
- |
211,87 |
(2%) |
* 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.
*** Volumes and prices reflecttotal sales of Samson – Food products, an associate company where the Company has 75% interest.
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