Russian meat and poultry company Cherkizovo reported that net profits for the company more than tripled during 2017, as did the net profits for its poultry division.

According to a press release from the company, Cherkizovo achieved a net profit of RUB5.8 billion (US$100 million) for 2017, improving from the RUB1.9 billion (US$34 million) recorded in 2016.

Cherkizovo’s poultry division’s net profit for 2017 was reported at RUB 4 billion, up from the RUB 1.2 billion reported one year ago.

Sergei Mikhailov, CEO of Cherkizovo, attributed the company’s strong performance to “strict cost control, focus on efficiency and benefits from our vertically integrated business model.”

“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 favorable medium-term outlook,” Mikhailov stated.

Cherkizovo reported that sales volumes for its poultry division increased by 4 percent on a year-over-year basis, with those volumes reaching 522,500 metric tons. The average selling price declined by about 4 percent, the company stated, but profits were helped from a higher share of Petelinka products in the sales mix, lower costs for feed inputs and Cherkizovo’s ongoing efforts to improve feed composition.

The company also reported that Tambov Turkey, a joint venture between Russian and Spanish business interests, reached its target capacity and is quickly gaining consumer appreciation for the quality of the turkey products.

Cherkizovo’s other business division performances

Cherkizovo Group’s pork division achieved a meaningful gain in net profits for 2017, but its net profits for the meat processing division experienced a decline.