Cherkizovo Group, a leading poultry, animal feed and pork producer in Russia, is selling more than US$300 million worth of company shares on the Moscow Exchange.
The company, according to a Reuter’s report, intends to use the proceeds of the share sale for general corporate purposes, which include debt repayment and potential acquisitions.
“Having substantially completed our latest investment cycle, we believe we are now well positioned to capitalize on our investments and deliver strong financial results and cash flow in the years ahead,” Cherkizovo Chief Executive Sergei Mikhailov stated.
Recent business highlights of Cherkizovo
Cherkizovo Group, in February, announced that it achieved a net profit of RUB5.8 billion (US$100 million) for the 2017 fiscal year, essentially tripling the net profit of RUB1.9 billion (US$34 million) it recorded during the 2016 fiscal year. It’s poultry division and its pork division saw its net profits increase, while its meat processing division saw a decline.
The company also reported volume gains in each of its business segments, with the biggest gains in the grain farming division.
According to the WATTAgNet Top Poultry Companies Database, Cherkizovo Group is Russia’s second largest broiler producer, trailing only Priskolye. It has a 10 percent market share and operates eight poultry production facilities with a total capacity of 580,000 metric tons of live weight. It is also involved in turkey production with the addition of the Tambov Turkey plant, a joint venture with Spanish Company Grupo Fuertes. Cherkizovo, in 2017, announced that it ranked among the top three pork producers in Russia, basing that assessment on data provided by the National Union of Pork Producers.
Russian Minister of Economic Development Alexey Ulyukaev, while speaking at the St. Petersburg International Economic Forum in 2016, praised Cherkizovo as the “champion of the Russian meat processing industry’s push for exports.