General Director of Cherkizovo allowed a decrease in prices for chicken

The Cherkizovo Group in the fourth quarter of 2021 can increase the production of poultry MEAT by about 20%, Sergey Mikhailov, CEO of the group, added that he even allows prices to fall.

“On our part, this is the maximum contribution to making it possible, at least, to stabilize prices. I even admit that there will be a fall in prices,” he said.

According to him, in the fourth quarter the situation will change for the better, including due to the restoration of the Altai Broiler, which was damaged by a fire in the summer, when the company lost "about 5,000 tons of meat per month" at once.

“We are launching Altaisky Broiler at 70% so far, but, as we said earlier, we will not only fully restore, but also expand production at this site. And next year, in general, for the group, we plan to increase by 5-6% compared to this year’s indicators,” Mikhailov said.

In 2020, Cherkizovo sold 695,100 tons of chicken meat, which is 5% more than in 2019 (663,000 tons).

The Cherkizovo Group unites seven complexes for the production of chicken meat (as well as the production complex of Belaya Ptitsa, used on a lease basis), 16 pig farms, five meat processing enterprises (including Samson Foodstuffs), two slaughter lines, nine feed mills factories, 12 elevators, a land bank with an area of ​​300,000 hectares and a full-cycle turkey production complex in Tambov.

The group's revenue in 2020 grew by 7.2% to RUB 128.8 billion, while net profit more than doubled to RUB 15.2 billion from RUB 6.8 billion in 2019. Adjusted EBITDA increased by 28.8% to RUB 26.6 billion. Profitability improved by 350 basis points to 20.6%.

In the first half of the year, revenue grew by 20.6%, to 73.1 billion rubles, adjusted EBITDA by 6.8%, to 11 billion rubles, the profitability on this indicator decreased to 15.1% from 17.1%. Net profit amounted to 13.4 billion rubles, an increase of 62.3% compared to the same period in 2020.