|By Marketwired .||
|March 6, 2014 03:40 AM EST||
MOSCOW, RUSSIA -- (Marketwired) -- 03/06/14 --
6 March 2014 Cherkizovo Group OJSC ("Cherkizovo" or "the Group" or "the Company") Financial results for the Year Ending December 31, 2013 Moscow, March 6, 2014 - Cherkizovo Group (LSE: CHE), Russia's largest integrated and diversified meat producer, today announces full-year audited financial results for the period ending 31 December 2013. Financial Highlights * Revenues increased by 8% in roubles, and increased by 5% on a US Dollar basis to $1,654.9 million in 2013 from $1,570.3 million in 2012. Revenues increased by 6% to $460.0 million in the fourth quarter of 2013 from $433.0 million for the fourth quarter of 2012, and increased by 11% on a rouble currency basis. * EBITDA* decreased by 41% in roubles, and declined by 43% on a US Dollar basis to $180.6 million in 2013 from $314.6 million in 2012. EBITDA* in the fourth quarter of 2013 decreased by 14% to $65.1 million from $75.4 million in the fourth quarter of 2012, and decreased by 10% on a rouble currency basis. * EBITDA* margin was at 11% in 2013, down from 20% in 2012. EBITDA* margin in the fourth quarter of 2013 decreased to 14% from 17% in 2012. * Gross profit decreased by 19% in roubles, and decreased by 21% on a US Dollar basis to $358.4 million in 2013 from $452.8 million for 2012. Gross profit in the fourth quarter of 2013 decreased by 1% to $118.2 million from $119.3 million in the fourth quarter of 2012, and increased by 4% on a rouble currency basis. * Group gross margin was at 22% in 2013 and 26% for the fourth quarter. * Net income decreased by 70% in roubles and declined by 71% on a US Dollar basis to $64.5 million from $225.2 million in 2012. Net income in the fourth quarter of 2013 decreased by 38% to $41.4 million from $ 66.5 million in fourth quarter of 2012, and declined by 35% on a rouble currency basis. * As of 31 December 2013 Net debt** was RUR 24,746.5 million ($756.1 million). * The effective cost of debt increased to 3% from 2% for 2012 * Net income per share decreased by 72% to $1.47 * Cash conversion rate (CCR)*** was 277%(103% for 2012) Business Developments * Large scale projects aimed to double capacity at the Bryansk and Penza clusters were completed. As a result of these 7.5 billion RUR investments, Bryansk cluster capacity increased from 35 000 to 85 000 tonnes p.a., Penza cluster capacity increased from 60 000 to 125 000 tonnes p.a. (liveweight) * Construction is underway of new broiler farms in the Moscow and Lipetsk regions. These farms will become operational in 2014 * Construction is underway of feed plant in the Bryansk region, hatchery for 240 million eggs p.a. and grain storage facility of 215 000 tonnes in the Lipetsk region * Petelinka brand recognized as "The Product of the Year"; new marketing campaigns and branding initiatives helped to increase the share of branded poultry products in sales * All new pork complexes are fully stocked with sows and fully operational. The company had increased number of piglets born by 500 000 with the same number of sows as in 2012 * Cherkizovo became Russia's second largest pork producer, increasing its sales of live hogs by 50% * The company installed a new semi-cooked products line"Cherkizovo Express" worth $20 million on its Moscow CHMPZ plant * The company reconstructed the slaughtering facility at Penza plant, increasing its meat storage capacity threefold and its livestock storing capacity twofold. * Cherkizovo acquired Dankov meat processing plant and slaughter house in the Lipetsk region * 2013 grain harvest increased by 50% as compared to 2012; the Company demonstrated very strong yields. Commenting on the financial performance, Cherkizovo Group CEO Sergei Mikhailov said: The year 2013 was challenging for the entire Russian meat industry, including Cherkizovo Group. In the first half of the year, the pricing environment for the pork and grain markets was unfavourable. Live pigs prices reached record lows, while in contrast, prices on grain reached a historic high for the last decade. Under these conditions, even the most efficient manufacturers, such as our company, experienced constant losses. However, starting from the second quarter, the situation began to improve. The first and most important event was the grain price drop to the level of longstanding trends. Due to the decrease of imports and to production at private farms, the pork supply declined, and by the middle of the third quarter, pig prices returned to acceptable figures. In addition, the government allocated one-time compensatory subsidies to producers, and this partly mitigated the consequences of the price shock. During this difficult period, Cherkizovo Group once again demonstrated that its business model, which combines vertical integration and diversification, enables the company to operate confidently, even in the most unfavourable conditions. Cherkizovo Group's revenues rose, surpassing 50 billion roubles for the first time in the company's history, and we increased production and sales in all divisions. In 2013, the company produced approximately 640,000 tonnes of meat products and around 1.5 million tonnes of feed, confirming its status as the country's largest meat and fodder manufacturer. Despite the fact that profitability indexes dropped substantially due to the unfavourable market environment, we are satisfied with the results of the work done in 2013. In the poultry division, we completed projects to double production capacity in Penza and Bryansk poultry clusters, achieving the specified capacity of 450,000 tonnes live weight per year. The company focused on marketing and sales in order to achieve sufficient profitability on the stagnating market. We increased the share of our branded products by 7 percentage points, to almost 60 per cent, and Petelinka, our top brand, was recognized as The Product of the Year. The previously implemented investment program in pig production enabled Cherkizovo Group to sharply expand production and performance and to become, based on the year's results, Russia's second largest pork producer. We increased sales by more than 50 per cent. Obviously, the low pork prices in the first half of the year did not make it possible to obtain in 2013 a full financial yield from growth in pig production, but after prices recover, we expect that this division will again become one of the most profitable business sectors. Meat processing emerged as a stabilising factor for the business. The price decline on meat, which hurt pig production, helped the meat processing division to increase its profitability to double digits. The higher profitability was also supported by improvement in sales structure and an increase in the share of high-margin products. During the year we reconstructed the Moscow and Penza facilities, raising their operating efficiency and preparing for the release of new lines of ready-to-cook products. The grain division returned outstanding results. Compared to 2012, yield was up by 50 per cent from practically the same cultivated area. Moreover, the grain yield at Cherkizovo Group facilities substantially exceeds the countrywide average. In order to make the grain division even more efficient, we are continuing to invest in modern agricultural machinery and grain storage. Cherkizovo Group has entered 2014 with facilities that are operating at full capacity, and this will make it possible to produce and sell considerable volumes of meat products this year, while the favourable pricing environment that we are currently observing on the markets will help to regain our business profitability longstanding trend. *** About Cherkizovo Group Cherkizovo Group (LSE: CHE) is the largest meat manufacturer in Russia and one of the top three companies serving Russia's poultry, pork and meat processing markets. The company is also Russia's largest producer of fodder. The Group includes 7 full cycle poultry production facilities, with a total capacity of 450,000 tonnes live weight p.a.; 14 modern pork production facilities with a total capacity of 180,000 tonnes live weight p.a.; 6 meat processing plants with a total capacity of 158,000 tonnes p.a.; 6 fodder plants with a total capacity of 1.4 million tonnes p.a.; grain storage facilities with a total storage capacity exceeding 500,000 tonnes; and a land bank exceeding 100,000 hectares. In 2013, Cherkizovo produced more than half a million tonnes of meat and processed meat products. Due to its vertically integrated structure, which includes agricultural land, grain storage facilities, feed production, livestock breeding, growing and slaughtering as well as meat processing and integrated distribution, Cherkizovo has consistently delivered sustainable revenue and profit growth. In 2013, Cherkizovo's US GAAP consolidated revenue exceeded $1,6 billion. Cherkizovo's strategy includes both organic growth and investment in new projects, driving the consolidation of the Russian meat market. Within the last five years alone, Cherkizovo has invested more than $1 billion into the development of Russia's agriculture sector. Cherkizovo shares are quoted on LSE and MICEX. - Ends - For further information: Investors/Analysts/Media Alexander Kostikov Tel. +7 495 788 3232 ext. 15019 Head of Communications [email protected] Tatyana Elizarova Tel. +7 495 788 3232 ext. 15236 Senior IR Manager [email protected] *** Some of the information in this press release may contain projections or other forward-looking statements regarding future events or the future financial performance of the Group. You can identify forward looking statements by terms such as "expect,""believe,""anticipate,""estimate,""intend,""will,""could,""may" or "might" the negative of such terms or other similar expressions. We wish to caution you that these statements are only predictions and that actual events or results may differ materially. We do not intend to update these statements to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. Many factors could cause the actual results to differ materially from those contained in our projections or forward-looking statements, including, among others, general economic conditions, our competitive environment, risks associated with operating in Russia, rapid market change in our industry, as well as many other risks specifically related to the Group and its operations $ symbol in this press release stands for US Dollar Click on, or paste the following link into your web browser, to view the associated PDF document: http://www.rns-pdf.londonstockexchange.com/rns/6670B_1-2014-3-6.pdf This information is provided by RNS The company news service from the London Stock Exchange END
"We are an all-flash array storage provider but our focus has been on VM-aware storage specifically for virtualized applications," stated Dhiraj Sehgal of Tintri in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Dec. 11, 2016 05:00 AM EST Reads: 1,172
"We are a leader in the market space called network visibility solutions - it enables monitoring tools and Big Data analysis to access the data and be able to see the performance," explained Shay Morag, VP of Sales and Marketing at Niagara Networks, in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Dec. 11, 2016 04:45 AM EST Reads: 651
Whether your IoT service is connecting cars, homes, appliances, wearable, cameras or other devices, one question hangs in the balance – how do you actually make money from this service? The ability to turn your IoT service into profit requires the ability to create a monetization strategy that is flexible, scalable and working for you in real-time. It must be a transparent, smoothly implemented strategy that all stakeholders – from customers to the board – will be able to understand and comprehe...
Dec. 11, 2016 04:30 AM EST Reads: 875
More and more brands have jumped on the IoT bandwagon. We have an excess of wearables – activity trackers, smartwatches, smart glasses and sneakers, and more that track seemingly endless datapoints. However, most consumers have no idea what “IoT” means. Creating more wearables that track data shouldn't be the aim of brands; delivering meaningful, tangible relevance to their users should be. We're in a period in which the IoT pendulum is still swinging. Initially, it swung toward "smart for smart...
Dec. 11, 2016 03:30 AM EST Reads: 1,147
Complete Internet of Things (IoT) embedded device security is not just about the device but involves the entire product’s identity, data and control integrity, and services traversing the cloud. A device can no longer be looked at as an island; it is a part of a system. In fact, given the cross-domain interactions enabled by IoT it could be a part of many systems. Also, depending on where the device is deployed, for example, in the office building versus a factory floor or oil field, security ha...
Dec. 11, 2016 03:00 AM EST Reads: 800
An IoT product’s log files speak volumes about what’s happening with your products in the field, pinpointing current and potential issues, and enabling you to predict failures and save millions of dollars in inventory. But until recently, no one knew how to listen. In his session at @ThingsExpo, Dan Gettens, Chief Research Officer at OnProcess, discussed recent research by Massachusetts Institute of Technology and OnProcess Technology, where MIT created a new, breakthrough analytics model for s...
Dec. 11, 2016 02:45 AM EST Reads: 915
In IT, we sometimes coin terms for things before we know exactly what they are and how they’ll be used. The resulting terms may capture a common set of aspirations and goals – as “cloud” did broadly for on-demand, self-service, and flexible computing. But such a term can also lump together diverse and even competing practices, technologies, and priorities to the point where important distinctions are glossed over and lost.
Dec. 11, 2016 02:45 AM EST Reads: 1,804
SYS-CON Events has announced today that Roger Strukhoff has been named conference chair of Cloud Expo and @ThingsExpo 2017 New York. The 20th Cloud Expo and 7th @ThingsExpo will take place on June 6-8, 2017, at the Javits Center in New York City, NY. "The Internet of Things brings trillions of dollars of opportunity to developers and enterprise IT, no matter how you measure it," stated Roger Strukhoff. "More importantly, it leverages the power of devices and the Internet to enable us all to im...
Dec. 11, 2016 02:30 AM EST Reads: 1,063
"We are the public cloud providers. We are currently providing 50% of the resources they need for doing e-commerce business in China and we are hosting about 60% of mobile gaming in China," explained Yi Zheng, CPO and VP of Engineering at CDS Global Cloud, in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Dec. 11, 2016 02:30 AM EST Reads: 1,300
"We are a custom software development, engineering firm. We specialize in cloud applications from helping customers that have on-premise applications migrating to the cloud, to helping customers design brand new apps in the cloud. And we specialize in mobile apps," explained Peter Di Stefano, Vice President of Marketing at Impiger Technologies, in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Dec. 11, 2016 01:45 AM EST Reads: 756
When it comes to cloud computing, the ability to turn massive amounts of compute cores on and off on demand sounds attractive to IT staff, who need to manage peaks and valleys in user activity. With cloud bursting, the majority of the data can stay on premises while tapping into compute from public cloud providers, reducing risk and minimizing need to move large files. In his session at 18th Cloud Expo, Scott Jeschonek, Director of Product Management at Avere Systems, discussed the IT and busin...
Dec. 11, 2016 01:45 AM EST Reads: 4,056
Data is the fuel that drives the machine learning algorithmic engines and ultimately provides the business value. In his session at 20th Cloud Expo, Ed Featherston, director/senior enterprise architect at Collaborative Consulting, will discuss the key considerations around quality, volume, timeliness, and pedigree that must be dealt with in order to properly fuel that engine.
Dec. 11, 2016 01:30 AM EST Reads: 1,755
In his general session at 19th Cloud Expo, Manish Dixit, VP of Product and Engineering at Dice, discussed how Dice leverages data insights and tools to help both tech professionals and recruiters better understand how skills relate to each other and which skills are in high demand using interactive visualizations and salary indicator tools to maximize earning potential. Manish Dixit is VP of Product and Engineering at Dice. As the leader of the Product, Engineering and Data Sciences team at D...
Dec. 11, 2016 01:15 AM EST Reads: 1,348
What happens when the different parts of a vehicle become smarter than the vehicle itself? As we move toward the era of smart everything, hundreds of entities in a vehicle that communicate with each other, the vehicle and external systems create a need for identity orchestration so that all entities work as a conglomerate. Much like an orchestra without a conductor, without the ability to secure, control, and connect the link between a vehicle’s head unit, devices, and systems and to manage the ...
Dec. 11, 2016 12:00 AM EST Reads: 1,133
Financial Technology has become a topic of intense interest throughout the cloud developer and enterprise IT communities. Accordingly, attendees at the upcoming 20th Cloud Expo at the Javits Center in New York, June 6-8, 2017, will find fresh new content in a new track called FinTech.
Dec. 11, 2016 12:00 AM EST Reads: 2,403