Cherkizovo posts 114 percent first-quarter net income growth
Company expects uncertainties in second half of year due to World Trade Organization admission
Russian meat producer Cherkizovo Group has posted a net income of US$39.3 million in the first quarter of 2012, a 114 percent increase from 2011's US$18.4 million, according to the company's latest financial report.
Sales volumes in the company's poultry division for the first quarter of 2012 increased by 42 percent to approximately 75,860 metric tons of sellable weight compared to approximately 53,570 metric tons for the first quarter of 2011, reflecting the contribution from the newly launched sites at Bryansk and sales by Mosselprom, acquired in May 2011. Prices for poultry decreased by 1 percent, from $2.43 per kilogram in the first quarter of 2011 to $2.40 per kilogram in the first quarter of 2012. Compared to the price in the fourth quarter of 2011 of $2.36, prices in the first quarter of 2012 were nearly flat.
"In the second half of the year, we still expect many uncertainties related to Russia’s admission to the [World Trade Organization]," said the company. "Cherkizovo will continue to focus on both parts of its strategy, strong organic growth along with investing into production, asset development and considering possible acquisitions."