Cherkizovo Group U.S. GAAP net profit rises 39% in 1H06. MOSCOW, October 17 (RIA Novosti) - Cherkizovo Group [RTS: GCHEG] said Tuesday its net profit, calculated to U.S. GAAP accounting standards, rose 39%, year-on-year, in the first six months of 2006 to $3.7 million.
Cherkizovo Group, one of Russia's leading integrated and diversified meat producers with a full production cycle, said its consolidated earnings increased 9% in January-June 2006, year-on-year, to $283.4 million and its gross profit was up 21% to $62.9 million.
"I am especially glad that the company has been able to overcome the adverse consequences of the bird flu. Despite all difficulties, we have managed to achieve a 20% increase in poultry sales and cut production costs," Cherkizovo Group General Director Sergei Mikhailov said.
Established in 2005 as a parent company of two separate groups of companies, Cherkizovo Group includes eight meat-processing plants, two poultry production complexes, four pig production complexes, one poultry processing plant, a combined fodder production plant and two trading houses with subsidiaries across Russia.
In May 2006, Cherkizovo Group held an initial public offering (IPO) to place 27.8% of its stock on the London Stock Exchange, in the Russian Trading System and on the Moscow Stock Exchange. The IPO campaign raised the company's capitalization to $904 million.
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