Russian Sea Group announces revenue for the fourth quarter and twelve months of 2010
Moscow, January 20, 2011 - OJSC «Russian Sea Group» (the «Company» or the «Group»), one of Russia's leading consumer food companies, today announces its unaudited revenue for the fourth quarter and twelve months ended December 31, 2010, based on management accounts.
The Company has demonstrated high sales performance in the fourth quarter of 2010 compared to the same period of 2009. The Group consolidated revenue (in Russian Rubles) increased by 28.2% from RUR 4,929.8 million in the fourth quarter of 2009 to RUR 6,319.4 million in the fourth quarter of 2010. Sales volume increased by 5.2% in the same periods from 56,166 tons to 59,076 tons.
Key Operational Indicators
. | 4Q 2010 | 4Q 2009 | YoY | 12M 2010 | 12M 2009 | YoY |
12 months | ||||||
Revenue, mln. RUR | 6,319.4 | 4,929.8 | 28.2% | 17,136.8 | 17,316.8 | (1.0)% |
Chilled and frozen segment | 4,772.2 | 3,635.8 | 31.3% | 13,354.1 | 13,147.8 | 1.6% |
Ready-to-eat segment | 1,547.2 | 1,294.1 | 19.6% | 3,782.7 | 4,169.0 | (9.3)% |
Sales volumes, tons | 59,076 | 56,166 | 5.2% | 179,658 | 189,617 | (5.3)% |
Chilled and frozen segment | 54,598 | 51,646 | 5.7% | 165,284 | 174,191 | (5.1)% |
Ready-to-eat segment | 4,478 | 4,520 | (0.9)% | 14,375 | 15,427 | (6.8)% |
The positive sales trend that started in September, continued in the last quarter.
Sales in Chilled and frozen segment in the fourth quarter of 2010 increased by 31.3% compared to the same period of the previous year from RUR 3,635.8 million to RUR 4,772.2 million. The physical volumes increased by 5.7%. The relevant 24% average price increase was driven primarily by shifts in product mix towards more expensive assortment as well as like-for-like average price increase.
Sales in Ready-to-eat segment in the fourth quarter of 2010 increased by 19.6% compared to the fourth quarter of 2009 and reached RUR 1,547.2 million. The physical volumes decreased by 0.9% which resulted primarily from terminated sales of low-priced and low-margin Kaliningrad products.
The consolidated revenue in 2010 remained relatively flat at the level of RUR 17 billion. The total physical volumes decreased by 5.3% from 189 617 tones in 2009 to 179 658 tones in 2010.
Sales in Chilled and Frozen Segment in 2010 increased by 1.6% to RUR 13,354.1 million while physical volumes decreased by 5.1%.
Sales in Ready-to-Eat in 2010 decreased by 9.3% to RUR 3,782.7, sales volumes in tons decreased by 6.8% primarily due to weak sales in the first half of the year.
Commenting on the Company results Dmitry Dangauer, the Company CEO, said:
"The past year has taught us to identify the problems and find the proper ways to fix them within the short period of time. The Q4 results could not be possible without serious work that was carried out during the year:
- we secured salmon and other core fish species supply that we lacked in the first half of the year;
- we continued to build our regional distribution network focusing primarily on sales representatives in Chilled and Frozen and further penetration to traditional trade channel in Ready-to-Eat. Sales through regional representatives in Chilled and Frozen in the fourth quarter almost doubled compared to the previous quarter and amounted to RUR 486 million;
- packaged frozen fish fillet program launched in Chilled and Frozen segment in September realized additional sales in the amount of RUR 32 million and marked our strategic shift towards more value-added higher margin products;
- changes in key management positions we made in summer in both segments have proven to be successful and led to positive sales dynamics;
- in the ready-to-eat segment we have launched the new «Surimi crab stick» products and «Mediterrana Bar» (seafood with traditional Mediterranean sauces);
- we improved efficiency of our work with major retail chains and intensified trade marketing activities which allowed us to strengthen our sales position with our core customers
The Company demonstrated significant revenue growth since September. However, weak performance in the first half of the year did not allow us to achieve year-to-year growth. Our target for 2011 is to bring back our historical growth rates and increase our market share and profitability. We believe that the positive trend that started in the second half of the year will be continued to the next year".
Head of IR
Russian Sea Group
Tel.: +7 (495) 258 99 28 ext. 3108
E-mail: ah@russiansea.ru
Natalia Trusova
IR manager
Russian Sea Group
Tel.: +7 (495) 258 99 28 ext. 3186
Cell.: +7 (917) 568 42 26
E-mail: nt@rusfishcom.ru