OJSC Cherkizovo Group: 1st Quarter Results

MOSCOW, RUSSIA--(Marketwired - May 28, 2014) -

Cherkizovo Group (LSE: CHE)
Announces Financial Results
 for the First Quarter of 2014

Moscow, May 28, 2014 - Cherkizovo Group (LSE: CHE) (MICEX: GCHE), Russia's largest meat and fodder producer, announces its financial results for the First Quarter ending March 31, 2014.

Highlights

• Revenue decreased by 2% to $376.6 million from $383.0 million in 1Q13 due mostly to the weakening of Russian rouble (RUB) against USD. In RUB, revenue increased by 13%;
• Gross Profit increased by 48% to $95.1 million from $64.4 million in 1Q13. In RUB, Gross Profit up 70%;
• Gross Margin increased to 25% from 17% in 1Q13;
• Adjusted EBITDA* has doubled to $56.2 million from $28.4 million in 1Q13. In RUB, Adjusted EBITDA increased by an impressive 128%;
• Adjusted EBITDA margin increased more than two times to 15% from 7% in 1Q13;
• Net Profit in 1Q14 amounted to $25.0 million vs Net Loss of ($0.6 million) in 1Q13;
• Net Margin was at 7%;
• Net Debt** was $808.9 million as of the end of 1Q14;
• The effective cost of debt was 3.2% (1Q13: 2.6%);
• EPS was at $0.57 (1Q13: loss per share of ($0.01));
• CCR (Cash Conversion Ratio) was 131%;

Business Developments

• Cherkizovo Group acquired LISKO Broiler in the Voronezh region, one of the country's largest poultry producers. The deal is based on the enterprise value of approximately RUR 5 billion. As a result of the acquisition, Cherkizovo increased its market share by 2 p.p. to 13%, making an important step to the poultry market leadership; 
• Operational land bank of the Grain Division was increased to 58 000 hectares as compared with 40 000 hectares in 2013. The Group invested in modern high-tech agricultural equipment in order to promote the efficiency of the grain segment and expects a harvest of approximately 250 thousand tonnes of grain in 2014;
• Cherkizovo Group launched case-ready production line at Cherkizovsky Meat Processing Plant in Moscow. The line allows for 100 tonnes of ready-to-cook meat products to be produced per day;

To view the full announcement, please click on the following link.
http://www.rns-pdf.londonstockexchange.com/rns/1966I_1-2014-5-28.pdf