Russian meat producer Cherkizovo has reported net loss of $0.6m for the first quarter of 2013, compared with net income of $39.8m in Q1 2012 due to high grain prices and low pork prices.
The company's sales for the quarter increased by 8.3% to $385m, compared with $357.3m for the same period in the corresponding year.
Cherkizovo stated that the first quarter was extremely challenging for all meat manufacturers in Russia.
Grain prices reached high with a peak in February and pork prices continued to decline throughout the quarter and forced the manufacturers to sell hogs below production cost.
Earnings before interest, taxes, depreciation and amortization (EBITDA) for the quarter decreased by 54% to $28.4m, compared with $62.5m in 2012.
Sales volumes in the Poultry division increased by 6% to 80,370 tons of sellable weight compared with 75,866 tons in 2012. Sales volumes in the Pork division increased by 58% to approximately 35,887 tons of live weight, compared to 22,660 tons in the previous year.
Sales volumes in the Meat Processing division increased by 1% to approximately 29,442 tons, while sales volumes in the Grain division increased by 43% to 8,438 tons compared with a year ago volumes.
Net Debt at the end of the first quarter totaled $846.8m. Total debt was $884.2m.
