Cherkizovo Group saw its revenues increase by 9 percent during the second quarter of fiscal year 2016 and 7 percent for the first half of the year when compared to the same periods of its 2015 fiscal year.

The Russian meat, poultry and feed producer’s revenues were RUB20.3 billion (US$313 million) for the quarter and RUB38.8 billion (US$598 million) for the six-month period.

Broken down by business segment, Cherizovo’s poultry segment saw in 8 percent improvement in revenues, the meat processing segment experienced a 16 percent increase in revenues, while the pork segment’s revenues declined 9 percent during the first half.

“Performance in the second quarter was in line with our expectations. Following a challenging first quarter, we saw strong operational performance across all segments in the second quarter, which fueled double- digit growth in volumes. The uptick came as a result of higher production levels and improvements in efficiency. The meat processing segment in particular continues to deliver solid performance in a stagnating market and the value of our Petelinka brand is growing, despite the lower year-on-year performance of the poultry segment. We are also starting to see signs of price recovery, particularly in poultry and pork. To sustain and leverage our key competitive advantages, we have been focusing on enhancing our business model to add even more emphasis on quality and value-added products, and we are already seeing the results of our efforts,” said Sergie Mikhailov, Cherkizovo CEO.

“Although the Russian ruble has started to stabilize, the average real exchange rate is still lower year-on- year and Russian consumers continue to face downward pressure on their purchasing power. Despite the challenging macroeconomic environment, we believe our strong domestic market position, aided by our expansion into selected international markets, will deliver strong financial and operational results in the coming quarters and years.”

Both periods ended on June 30.