Cherkizovo meat 2010 net profit up 21% to $144 mln

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Net profits for Cherkizovo Group, one of Russia's leading meat producers, grew 21% year on year in 2010 to $144.4 million to US GAAP, the company said on Monday.

Net profits for Cherkizovo Group, one of Russia's leading meat producers, grew 21% year on year in 2010 to $144.4 million to US GAAP, the company said on Monday.

The company's 2010 revenues increased 17% to $1.188 billion last year. EBITDA in the same period increased 20% to $218.7 million, while adjusted EBITDA margin was at 18%.

Gross profit for the year grew by 15% to $323.9 million, while the gross margin was at 27%.

The company's net debt stood at $580.2 million as of December 31, 2010. The effective cost of debt was below 3%, the company said.

"The 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," Cherkizovo Group CEO Sergei Mikhailov was quoted as saying in a statement.

"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. Combined with an increased share of poultry imports late in 2010, it has put downward pressure on selling prices, especially for poultry sales in the first quarter of 2011," he said.

Cherkizovo stock is listed on the MICEX and RTS in Russia and the London Stock Exchange.

MOSCOW, March 28 (RIA Novosti)

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