The meat processing sector of the agro-industrial complex plays one of the key roles in ensuring stability of the socio-economic situation, improving the quality of life of the population, and is also one of the links in the production and promotion of agricultural products to the main markets. In recent years, meat market experts have noted the absence of a unified strategy in Russian meat processing companies. At the same time, experts predict Russian meat market glut, intensification of the search for new of points of entry into foreign markets, and expansion of the range of semi-finished products in order to increase sales.
Given that each agricultural or processing company has its own specificity due to natural, production, labour, financial and other factors, the level of production efficiency and financial stability of these organizations may vary significantly. At the same time, the current indicators on profit, revenue and tax burden provide general conclusions about the state of the meat processing industry and the prospects for its development in the Central Federal District.
The purpose of this article is to conduct a quick analysis of the financial condition of the main meat processing companies in the Central Federal District, and to determine the key trends of their development.
The financial indicators of the largest meat processors in the Central Federal District were used as the basis for the open source analysis. The largest meat processing companies by asset size were compared by revenues (2023 data). The leaders and outsiders of the ranking were determined on the basis of revenue and net profit for 2023.
Conclusions
The financial condition of most companies represented in the ranking is assessed as stable, except for a number of outsiders. The analysis of the dynamics of financial indicators allows us to conclude that the recovery of the Russian market after the coronavirus pandemic is quite rapid. The sanctions against Russia following the start of the Special Military Operation gave a further boost to this process. As the rate of return in the meat processing segment grows, new investors come to this segment. By the end of 2023, the number of companies engaged in meat processing returned to its prepandemic values, reaching 10,219. It is likely that, as the sector normalizes in the near future, a series of merger deals can be expected, when the large companies will begin to take over debt-laden small players and compete for market share.
Ranking Leaders
АО “Ostankino Meat Processing Plant”
Founded in 1954, this company is currently a leading producer of meat products and semi-finished products in central Russia.
The company owns 12 trading houses and two modern livestock complexes. The plant produces more than 680 tons of products per day. The main products are sausages, Vienna sausages, frozen and chilled meat, hams, bratwurst, smoked meat, meat pancakes and meat pelmeni. The production of the plant is known to the general consumer under the trademarks “Ostankino”, “Daddy Can”, “Soviet Heritage” and “Korovino”.
The company has more than 9,000 employees.
In 2023, the company increased its revenue by 6.9%, while the total asset value grew by 26% to 23,451 million rubles.
АО “Cherkizovo Meat Processing Plant”
“Cherkizovo” is not just a meat processing company, because it also includes poultry plants, state of the art pig complexes, feed-processing plants and 355 thousand hectares of agricultural land. The company’s products have been known to Russian consumers since 1974.
Today the company operates in 19 regions of Russia (from Kaliningrad region to Altai region), and has more than 40 thousand employees.
The company is known in the domestic market as a producer of ham, raw smoked and boiled sausages, Vienna sausages, snacks and other types of meat products and semi-finished products, supplied to the Russian market under the brand name “Cherkizovo”.
Since 2020, the company has been expanding into the global market, supplying its products to Middle East. In 2023, the export volumes of “Cherkizovo” Group, the largest Russian producer of meat products, exceeded 110,000 tons, while in monetary terms, the export sales increased by 15%.
In 2024, the company completed the modernization of its meat delicacies factory in Sinyavino, Leningrad region. State Construction Supervision and Inspection Service of Leningrad region has already issued a permit for the plant commissioning.
In 2023, the company showed a 15% growth in revenue, reaching 54,820 million rubles. The net profit amounted to 2,203 million rubles.
ZAO “Starodvorsky Sausages”
This plant has been producing meat products since 1995. Currently, the company produces bratwurst, Vienna sausages, semi-smoked, cooked and smoked sausages, ham. The company is known to the consumers with its trademarks “Starodvorye”, “Hot thing”, “Vyzanka”, “Bavarushka”, “Yadryona kopot”. Abroad, the company’s products are represented predominantly in the Middle Eastern market and are known to the consumers under Foodgital brand.
The main assets of the company are located in the Vladimir region. Today it is one of the fastest growing modern companies in the region. A three-stage control system has been introduced in the company – from the selection of meat to the dispatch of products for sale. In 2021, the company launched its own microbiological laboratory for quality control.
By the end of 2022, the company increased its staff: the team exceeded 10,000 employees. The company continues the implementation of large investment projects and the construction of new production facilities for the factories “Starodvorsky Sausages” and “Meat Gallery”.
In 2023, the company’s revenue amounted to 49,560 million rubles, which is the highest figure not only among the meat processors in the Central Federal District, but also throughout Russia. In 2022, the company was one of the 500 largest companies in Russia by revenue.
АО “Invest Alliance”
In 2023, АО “Invest Alliance” (Yermolino, Kaluga region) became the leader of the rating by net profit. According to the results of 2023, the company’s net profit volume amounted to 4,828 million rubles. The company is known to the consumers with its products under “Yermolino” brand. The company was established in 1999. Now its products with the trade mark “Yermolino” are produced at three modern plants. Besides the sausage production, the company also produces dairy, confectionery and semi-finished products.
The company sells its products through a network of its own shops which includes about 3,000 stores. Thus, “Yermolino” trade mark is represented in almost all regions of Russia. The company has more than 14,000 employees.
Outsiders
BMPK
Among the least successful meat processing companies is OOO “BMPK”. Once a prosperous plant, which produced more than 7,000 tons of sausages and semi-finished products a year, today it faces possible bankruptcy due to the financial insolvency of the last owner. The current owner and CEO of the company based in Bryansk, Muhtar Badyrhanov, is unable to pay off the plant’s loans.
From 2007 to 2019, AO “Rosselkhozbank” gave OOO “BMPK” a total of 12 loans. By the end of October 2023, the total amount of debt amounted to 2.7 billion rubles. The lender pledged the company’s real and movable property, as well as the owner’s personal property. In August 2023, the bank announced a default on the loans and the early claim of debt, and in late October sold the liabilities of the group of debtors “Tsar-Meat” to a new investor OOO “Novaya Vysota”. As of October 2023, the company owed 2.66 million rubles to the tax authorities.
ООО “Volovsky Broiler”
This company is based in Volovo village, Tula region. The company’s assets include its own feed base, feed processing plant, production sites for raising broilers, deep processing workshop and its own warehouse complex.
In recent years, “Volovsky Broiler” is experiencing financial difficulties. In 2020, the company’s revenue decreased by 15%, and the net loss amounted to 100 million rubles. In 2021, the situation got even worse: the revenue fell by another 10%, and the loss rose to 200 million rubles.
The company is now in bankruptcy. The company OOO “Ametrin” filed a lawsuit against the manufacturer. In August 2023, OOO “Ametrin” tried to sue OOO “Volovsky Broiler” for 2.53 million rubles by submitting a corresponding claim to the Regional Arbitration Court. Apparently, these are debts for previously completed work, as well as the penalties. The main activity of OOO “Ametrin” is construction works, construction of residential and non-residential buildings.
The financial problems of “Volovsky Broiler” are related to a number of factors, including the rise in the prices of feed and electricity, as well as the competition by other poultry producers. In addition, the company suffers from a lack of working capital and high levels of indebtedness. As of the end of 2023, the company owes 81.8 million rubles to the tax authorities.
ООО “Dmitrogorsk Meat Processing Plant”
ООО “Dmitrogorsk Meat Processing Plant” was established in 2014. The capacity of this meat processing company is about 80,000 tons per year, while the sausage production capacity is 26,000 tons per year. “Agropromkomplektacia” Group (which includes “Dmitrogorsk Product”) has its own feed base. The company also includes a workshop for technical products for 2.6 thousand tons of meat and bone meal, and 1.9 thousand tons of technical fat per year. In addition, the company also has its own retail network in 5 constituent entities of the Russian Federation, which includes more than 100 “Dmitrogorsk Product” stores.
The consumers are familiar with the company’s sausages, delicacies and dairy products. At the end of 2023, it was reported that the trade mark “Dmitrogorsk Product” would cease to exist.
Now the company is at the stage of financial stabilization after a long investment cycle.
Source: sfera.fm