FDBusiness.com

Cherkizovo Group Delivers Solid Sales Growth and Improved Profitability For 2017

 Breaking News
  • Irish Distillers to Invest €150 Million in Sites in Cork and Dublin Irish Distillers has announced investment of over €150 million in its sites in Cork and Dublin to meet demand for its products as the Irish whiskey renaissance continues apace. This is accelerated by the continued growth of the company’s flagship Jameson brand, which is now in double or triple-digit growth in more than 80 markets [...]...
  • Kepak Sweeps Up Seven Awards at Blas na hEireann Irish meat processor Kepak Group has picked up seven awards at this year’s prestigious Blas na hEireann Irish Food Awards, including a Gold award for its newly launched Centra Irish Angus Sirloin Steaks with Pink Peppercorn Butter. As one of Europe’s leading food innovators, Kepak was up against the top Irish producers in a range of distinct [...]...
  • Chr. Hansen Acquires Dairy Ingredient Supplier Through the acquisition of Austrian-based ingredient supplier Österreichische Laberzeugung Hundsbichler, Chr. Hansen will further expand its enzyme production and presence into the traditional segments of specialty cheeses. Hundsbichler products are widely recognized for high quality, and this acquisition will enable Chr. Hansen to offer cheesemakers a second-to-none product portfolio in the animal rennet space. The acquisition [...]...
  • Croxsons Pulls Out All the Stops For HMS Spirits Company Leading glass packaging company, Croxsons, recently came to the aid of start-up artisan gin distiller, the HMS Spirits Company, to fulfil an urgent packaging requirement. The distiller had found itself without a closure for its latest release, Mary Rose Gin, a small batch London Dry Gin produced to celebrate Henry VIII’s famous warship. The distiller, who [...]...
  • Mains Overtaking Bottled Water Coolers in West Europe 102,500 more water coolers were installed across West Europe in 2017, marking a 3.4% increase and taking the total to 3.1 million, according to a new report from the sector’s leading specialist consultancy Zenith Global. The number of mains water, point of use coolers rose by 6.2% to reach 46.9% of the total, up from [...]...

Cherkizovo Group Delivers Solid Sales Growth and Improved Profitability For 2017

Cherkizovo Group Delivers Solid Sales Growth and Improved Profitability For 2017
February 26
10:23 2018

Cherkizovo Group, the largest vertically integrated meat producer in Russia, has reported a 10% year-on-year (y-o-y) increase in revenue to RUB90.5 billion (€1.3 billion) for 2017 with Adjusted EBITDA up to RUB15.3 billion, compared to RUB10.3 billion in 2016. Adjusted EBITDA margin jumped to 17.0% compared to 12.5% in 2016 and Net profit for 2017 grew 202% y-o-y to RUB5.8 billion, versus RUB1.9 billion in 2016.

Cherkizovo Group’s pork and meat processing segments all delivered significant growth, with respective y-o-y rises in revenue during the year of 17% and 7% respectively. Poultry segment sales slightly decreased by 1% during the year.

The group also advanced its development strategy during the year. In April 2017, Cherkizovo Group acquired NAPKO, one of Russia’s leading grain producers with 147,000 hectares of land located in Lipetsk, Tambov and Penza regions, which are strategically important areas for Cherkizovo Group. Following the acquisition, in July, the group launched new pork fattening sites in Lipetsk and Voronezh regions, with total production capacity of more than 126,000 live market hogs annually.

In August, the controlling shareholder of Cherkizovo Group, together with its affiliates, completed the acquisition of 21.05% of the group’s ordinary shares and GDRs from funds and portfolios under the management of Prosperity Capital Management, for a total consideration of RUB12.0 billion.

In October, the Tambov Turkey project, a 50-50 joint venture between Cherkizovo Group and Grupo Fuertes, Spain’s leading agricultural producer, reached total installed capacity of 45,000 tonnes per annum and its Pava-Pava brand is already visible on the shelves of the federal modern retail trade.

Sergei Mikhailov, chief executive of Cherkizovo Group, comments: “We are pleased to report the company’s solid sales growth and improved profitability for 2017, as our focus on implementing strategic initiatives delivered value to shareholders and positioned us for a favourable medium-term outlook. In 2017 our revenues rose by 10% and reached RUB 90.5 billion. Strict cost control, focus on efficiency, and benefits from our vertically integrated business model lifted our adjusted EBITDA to RUB 15.3 billion, a growth of 49% y-o-y, while adjusted EBITDA margin improved to 17%.”

Sergei Mikhailov, chief executive of Cherkizovo Group.

He continues:  “Our overall strong operational performance during 2017 was offset in part by softening of domestic prices for pork and poultry in 4Q 2017; however, prices stabilized in December 2017. In order to sustain and extend our leadership positions in the Russian meat sector, we ramped up production across all segments, bringing overall production to c.1 million tons of meat products, and moving us up to #2 in the ranking of domestic pork producers.

“Tambov Turkey, Russia-Spanish joint venture facility reached its target capacity, which is quickly gaining consumer appreciation for the quality of turkey product. In the pork division, the newest addition of the fattening capacity coupled with genetics improvements allowed us to expand production by 15% to 212 thousand tons. Both initiatives allowed us to further diversify our sales mix across meat types. The only major investment project left, to complete our current investment cycle, is our state- of-the-art processed sausage meat factory in Kashira, Moscow region, which will be the largest of its kind in Europe, and which is expected to be launched by the middle of 2018.

“With heightened attention to our customers, and to better serve evolving consumer preferences, we focused on expanding our branded, value-added offering, including fresh processed poultry, pork and ready-to-eat products. We also broadened our distribution network to new regions, and our poultry products are now available in St Petersburg, and our processed meat products have entered the Urals and North-West Federal regions.”

About Author

mike

mike

Related Articles



Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • October 18, 2018Future Food-Tech London - Marketing Partnership
  • October 21, 2018Int'l Food Products Exhibition (Sial)
  • October 25, 2018Italian Espresso Coffee Show (TriestEspresso Expo)
  • October 25, 2018Finnish Food Fair
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber





Subscribe Here



Advertisements