Cherkizovo Group announces operating results for December, the fourth quarter and full 2019

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Cherkizovo Group announces operating results for December, the fourth quarter and full 2019

16 янв 2019, 09:07 1017

Cherkizovo Group (MOEX: GCHE), the largest vertically integrated meat producer in Russia, today announces operating results for December, the fourth quarter and full 2018.

Fourth quarter 2018 highlights:

Chicken: Sales volume growth in 4Q18 was supported by the consolidation of Altai Broiler results, which added 5 thousand tonnes in December. Average sales price increased by 32% y-o-y and 13% q-o-q on the back of better sales mix with more products under Petelinka and Chicken Kingdom brand, as well as the further shift to the deboned and high value-added products, as well as supply cuts by other chicken producers.

Turkey: JV Tambov Turkey sales volume of 9.6 thousand tonnes remained unchanged compared to 4Q17 and was up 3% compared to the previous quarter. Average sales price improved by 46% y-o-y and 21% q-o-q due to the ongoing expansion of Pava-Pava branded offering and supported by supply dislocations on the market.

Pork: Production and sales volume were higher, compared to both 4Q17 results and the previous quarter as we ramped up output at newly built facilities. Prices gained 19% compared to 4Q18, but declined 9% compared to the previous quarter, on seasonally rising supply and in anticipation of the Brazilian pork imports ban lift.

Meat Processing: Sales volume remained in line with 4Q17 and previous quarter, with cuts declining further, offset by growth of carcass. In sausages category, a shift towards dry, semi-smoked sausages and hams in the sales mix contributed to a higher average sales price.

Grain (2018 results): Sales volume of 696 thousand tonnes was up 54% mainly due to the sales of grains inventory accumulated from 2017 harvest. The total harvest of 2018 amounted to 480 thousand tonnes, down 24% compared to 2017, as we scaled down corn and wheat acreage. The average sales price was driven by higher amounts of wheat and sunflower, as well as average market prices for wheat and corn rising by 56% and 17% respectively.

Monthly performance

	December 2018	December 2017	Change % y-o-y	November 2018	Change % m-o-m
	December 2018	December 2017	Change % y-o-y	November 2018	Change % m-o-m

Chicken
Volume sold, thousand tonnes	51.50	44.94	15%	47.51	8%
Average price, RUB/kg	116.54	86.26	35%	112.35	4%

Turkey*
Volume sold, thousand tonnes	3.38	3.31	2%	3.16	7%
Average price, RUB/kg	204.30	134.30	52%	182.32	12%

Pork**
Volume produced, thousand tonnes	27.32	21.52	27%	23.71	15%
Volume sold, thousand tonnes	26.42	20.54	29%	22.97	15%
Average price, RUB/kg	96.86	83.68	16%	105.00	(8%)

Meat Processing
Volume, thousand tonnes	20.72	20.13	3%	19.05	9%
Sausages	9.63	9.39	3%	8.57	12%
Cuts	3.02	4.86	(38%)	2.88	5%
Carcass	6.96	4.90	42%	6.50	7%
By-products	1.11	0.98	13%	1.11	0%
Average price, RUB/kg	185.79	164.66	13%	180.48	3%
Sausages	215.03	184.11	17%	197.30	9%
Cuts	231.96	189.06	23%	225.86	3%
Carcass	148.12	125.06	18%	158.53	(7%)
By-products	42.80	55.40	(23%)	61.07	(30%)

Quarterly performance

	4Q 2018	4Q 2017	Change % y-o-y	3Q 2018	Change % q-o-q
	4Q 2018	4Q 2017	Change % y-o-y	3Q 2018	Change % q-o-q

Chicken
Volume sold, thousand tonnes	144.35	137.12	5%	131.27	10%
Average price, RUB/kg	112.39	85.20	32%	99.14	13%

Turkey*
Volume sold, thousand tonnes	9.61	9.66	(1%)	9.34	3%
Average price, RUB/kg	188.05	128.97	46%	155.34	21%

Pork**
Volume produced, thousand tonnes	72.72	63.03	15%	59.37	22%
Volume sold, thousand tonnes	70.20	59.96	17%	56.85	23%
Average price, RUB/kg	100.61	84.75	19%	110.98	(9%)

Meat Processing
Volume, thousand tonnes	59.64	59.51	0%	59.35	0%
Sausages	27.69	28.65	(3%)	27.23	2%
Cuts	9.02	13.83	(35%)	9.67	(7%)
Carcass	19.90	14.07	41%	19.10	4%
By-products	3.04	2.95	3%	3.33	(9%)
Average price, RUB/kg	180.86	163.61	11%	175.22	3%
Sausages	201.11	176.98	14%	182.00	10%
Cuts	226.08	196.00	15%	223.44	1%
Carcass	151.69	126.41	20%	162.68	(7%)
By-products	53.23	59.40	(10%)	51.84	3%

Annual performance

	2018	2017	Change % y-o-y
	2018	2017	Change % y-o-y

Chicken
Volume sold, thousand tonnes	544.15	522.50	4%
Average price, RUB/kg	96.89	88.84	9%

Turkey*
Volume sold, thousand tonnes	39.25	26.32	49%
Average price, RUB/kg	147.95	145.29	2%

Pork**
Volume produced, thousand tonnes	247.27	211.75	17%
Volume sold, thousand tonnes	236.87	200.31	18%
Average price, RUB/kg	98.20	92.12	7%

Meat Processing
Volume, thousand tonnes	229.52	204.24	12%
Sausages	106.73	110.78	(4%)
Cuts	40.33	52.97	(24%)
Carcass	70.28	30.84	128%
By-products	12.18	9.65	26%
Average price, RUB/kg	169.64	170.07	(0%)
Sausages	184.45	174.61	6%
Cuts	205.29	200.51	2%
Carcass	146.74	136.18	8%
By-products	53.86	59.25	(9%)

Grain***
Volume harvested, thousand tonnes	479.73	631.90	(24%)
Volume sold, thousand tonnes	696.09	453.27	54%
Wheat	349.73	228.44	53%
Corn	172.85	127.77	35%
Sunflower	85.96	9.49	806%
Barley	31.18	32.70	(5%)
Soybean	25.11	25.12	(0%)
Other	31.26	29.76	5%
Average price, RUB/kg	9.92	7.02	41%
Wheat	8.94	5.74	56%
Corn	6.32	5.42	17%
Sunflower	17.43	17.89	(3%)
Barley	9.31	5.76	61%
Soybean	23.27	21.78	7%
Other	10.00	9.18	9%

* Volume and prices reported in turkey section represent sales of the Trading Company “Cherkizovo”.

** Difference in the volume produced and volume sold in the pork segment is attributable to retained gilts replacement. Volumes sold include both intercompany and 3rd party sales.

*** All volumes are in dry weight.

Источник: ОАО «Группа Черкизово»