Cherkizovo reports slide in profits after mixed year

摘要

Russian meat processor Cherkizovo reported a steep fall in profits in 2013 as margins were squeezed by lower pig prices and high feed costs in the first half of the year.Net income fell 71% to $64.5 million from $225.2 million in 2012, while earnings before interest (EBITDA) declined by 43% to $ 180.6m.Despite the tough conditions however, Cherkizovo's annual revenues surpassed RUB50 billion for the first time ever as new facilities came onstream. In dollar terms, revenues were up 5% on year at $ 1.65 billion."In the first half of the year, the pricing environment for the pork and grain markets was unfavourable," said Cherkizovo Group chief executive Sergei Mikhailov."Live pigs prices reached record lows, while in contrast, prices on grain reached a historic high for the last decade," he noted.Under these conditions, Mikhailov said even the most efficient manufacturers experienced constant losses.