Cherkizovo net income up 51 percent for nine months 2012

Cherkizovo's net income increased by 51 percent in the first nine months of 2012, to US$158.7 million from US$105 million for the nine months of 2011, according to the company's latest financial report.
"I am pleased to be announcing good nine months results, with a strong third-quarter performance," said Sergey Mikhailov, CEO of Cherkizovo. "It is pleasing to see our nine months' revenues pass the one billion dollar mark (US$1.145 billion, up 6 percent), as active management and a supportive trading environment combined to produce solid growth. We have improved profitability in the poultry and meat processing segments and invested in our pork segment to provide long-term, sustainable growth beyond 2013."

Profit in the company's poultry division increased by 86 percent, to US$101.7 million, in the nine months of 2012. Profit in the meat processing division increased by 87 percent, to US$22.9 million. "The strong poultry results reflect the infrastructure investments Cherkizovo has already made, with impressive volume and revenue growth reflecting strong organic growth and good incremental sales from Mosselprom," said Mikhailov. "Meanwhile, the segment’s substantial improvement in operational efficiency has produced better profitability."
Looking ahead, said the company, the operational environment in the medium term looks more challenging, but Cherkizovo is well prepared, with significantly increased grain storage capacity, enabling the group to benefit from flexible grain procurement. "The company’s diversified operations ensure that we are well placed to benefit from high meat prices at the poultry and pork segments, or low meat prices at the meat processing segment," said Mikhailov.