Cherkizovo Annual Sales Up 17%
For the full year of 2010, the company posted a gross profit of $323.87m, compared to $281.64m for the same period in 2009. Operating income was $166.97m, compared to $139.74m for the same period in 2009. Net income attributable to Group Cherkizovo was $144.45m, compared to $119.44m for the same period in 2009.
Net debt at the end of 2010 was $580.2m. Total debt was at $648.4m. Of total debt, long-term debt was approximately $465.9m or 72 percent of the debt portfolio.
In 2010 the group received interest reimbursement of $42.7m which offset interest expense. In 2009 the interest reimbursement was $31.9m.
Sergey Mikhailov, CEO of the company, said: â€œDuring 2010 we have delivered a solid performance, with a 17 percent increase in revenue and growth in Adjusted EBITDA of 20 percent. This has resulted in a healthy 18 percent Group Adjusted EBITDA margin. However, our results were affected by a soft pricing environment in the poultry and pork divisions, as well as rising input costs, particularly towards the end of the year.
â€œThe outlook for 2011 is challenging. The operational impact of steep rises in grain and other feedstock input costs will largely be felt in the coming months, and we anticipate that these will only be partially offset by higher pricing. This reflects an unusually weak pricing environment in the last quarter of 2010, despite commodity inflation, partly as a result of short-term oversupply of meat in the market due to destocking by less efficient producers and individual households in response to rising feed costs.â€
Will the firm further improve sales in 2011?
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