Russian Sea Group announces revenue for twelve months of 2011
Moscow, February 6, 2012 - OJSC "Russian Sea Group" (the "Company" or the "Group"), one of the leading Russian consumer food companies, today announces its revenue for the twelve months ended 31 January 2011 based on unaudited management accounts, reports http://www.megafishnet.com/.
The consolidated revenue of the Group increased by 7.3% to RUR 18,520.0 million in 12 months of 2011 from RUR 17,254.2 million in the same period of 2010.
Key operational indicators
Revenue, in million of RUR
Chilled and Frozen Segment
Sales in Chilled and Frozen Segment increased by 7.5% to RUR 14,495.6 million in 12 months of 2011 as compared to the same period of last year. Revenue growth resulted from increased sales of chilled red fish mainly in modern retail trade channels and considerable increase of regional sales through regional trade representatives and offices. Sales of Far Eastern and Russian assortment have grown significantly as well.
Sales in Ready-to-Eat Segment grew by 6.4% to RUR 4,005.3 million in 12 months 2011. This result was achieved mainly due to the shift of product mix towards more expensive products with higher margin and discontinuation of production of low-priced and low-margin Kaliningrad products.
In Aquaculture segment sales to external customers amounted to RUR 19.1 million in 2011 that represents more that 50% of the segment's revenue. It was the first year when we sold trout farmed at our trout farm Segozerskoye in Karelia to external customers. In 2010 the segment's sales were realized through distribution channels of chilled and frozen segment.
Commenting on Company results Timofey Tarasov, the Company CEO, said:
"We see positive revenue dynamics in all segments in 2011.
In distribution segment chilled salmon and trout sales development became the main growth driver in 2011. Revenue in this important category increased despite considerable decline in purchase prices for the red fish in 2011 compensated by substantially higher sales volumes. Growth in this category was achieved by increased volumes in modern retail channel and regional expansion - we started to sell chilled fish through our network of regional branches. We also further strengthened our regional network through continuation of our regional trade representatives program.
In Ready-to-Eat segment the emphasis was made on high value added products. Revenue growth reflects positive changes in product mix. The main objective of the 4th quarter was to restore profitability of red fish business enabled by favorable trend in raw red fish prices. In herring preserves category we were looking to retain margins challenged by raw herring prices growth. In 2011 we launched crab sticks production at our own production facility in Saint-Petersburg. In future this category will become an important growth driver for the Company. The main priorities for 2012 are to expand and differentiate our product portfolio in main categories, especially red fish, to enter new product segments and further reduce our production and operational expenses.
Last year was extremely important for aquaculture development. In December 2011 the Company won a tender for 9 sites in Barents and White Sea basins destined for salmon and trout farming. Inclusion of these sites concludes the creation of a portfolio of a total of 29 sites. At three of these sites at our trout farm in Karelia we already successfully farm fish. Besides we received approval of a credit line from Russian Agricultural Bank with a total amount of RUR 2,8 billion. This credit will be used to start salmon farming at our new sites in Murmansk and to develop new sites in Karelia. These two events - completion of a portfolio of sites and approval of a credit line - give us confidence that within the next few years Russian Sea Group will become an undisputed leader in fish farming in Russia".
NOTE TO EDITORS
Russian Sea Group was founded in 1997 and began its operations by importing herring and mackerel from Norway. In 1999, the Company launched production of the ready-to-eat fish products under its core ‘Russian Sea' brand and then continued its development as a producer and distributor of fish and fish products. At present, Russian Sea Group comprises two main business divisions, operated respectively by Russian Sea Company, and Russian Fish Company, each a wholly-owned subsidiary of Russian Sea Group.
The ‘ready-to-eat' business (Russian Sea Company) produces and sells "ready-to-eat" fish and seafood products under well-recognized brands, such as "Russian Sea","Islandka", "Selyodochka Stolichnaya", "Mediterana", "7 Uzlov" and "Flottika". These products include salted and smoked salmon and trout, red caviar, a wide assortment of herring products, seafood, seaweed products androe spreads. The Group operates a modern fish and seafood production facility in Noginsk, Moscow region (approximately 40 km from Moscow).
The Group's ‘chilled and frozen' business (Russian Fish Company) sells and distributes over 60 types of fish and seafood, including, among others, salmon, trout, cod, herring, mackerel, humpback salmon, pollack, flounder, shrimp and squid, to nationwide and regional retail chains, regional distributors and fish processing companies throughout Russia. The chilled and frozen fish and seafood business sources fish from domestic suppliers, as well as foreign suppliers from 18 countries, including, among others, Norway, the UK, the USA, Chile, Iceland, Vietnam and China. Its major international suppliers include Marine Harvest, Shetland Catch and Norway Pelagic. The Company supplies fish and seafood to over 85% of the regions of the Russian Federation.
The Group also operates a fish farming business (Russian Sea Aquaculture) which commenced operations in 2007 following the Group's purchase of a trout farm at Lake Segozero in Karelia, Russia.
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