OREANDA-NEWS. August 17, 2012. OJSC "Russian Sea Group" (the "Company" or the "Group"), one of Russia’s leading consumer food companies, today announces its revenue for the first 6 months of 2012 based on unaudited management accounts.

In million of Russian rubles

1H 2012

1H 2011

Change

Consolidated revenue

7,567.6

8,623.2

(12.2%)

Chilled and frozen segment

5,951.4

6,694.3

(11.1%)

Ready-to-eat segment

1,561.3

1,925.1

(18.9%)

Aquaculture

54.9

3.9

 

The Group revenue decreased by 12.2% to RUR 7,567.6 million in the 1H of 2012 as compared to the same period of 2011.

Other financial results for the 6 months ended 30th of June 2012 will be announced once an auditor’s report on interim condensed consolidated financial statements is finalized.

Chilled and Frozen Segment

Net sales to external customers decreased by 11.1% to RUR 5,951.4 million in the 1H of 2012 due to Far Eastern and Russian pelagic fish prices volatility that affected the Company’s ability to steadily sell its stocks.  

Ready-to-eat Segment

Net sales to external customers decreased by 18.9% to RUR 1,561.3 million in the 1H of 2012 as compared to the 1H of 2011. The sales dropped mainly in the modern retail trade channel as a result of the Company’s systematic rejection to sell branded products on tender basis. Besides, the sales volumes decreased in the 1H of 2012 as compared to the same period of the previous year because in 2012 the Group stopped to sell significant volumes of salmon roe under Chingai and Soviet brands due to insufficient gross profit earned in this product category.  

Aquaculture segment

The segment’s revenue amounted to RUR 88.1 million. Net sales to external customers were equal to RUR 54.9 million.

Timofey Tarasov, the Group CEO, has commented on operating results and major priorities:

“In the first half of 2012 the revenue decreased in both segments – ready-to-eat and chilled and frozen. 

In chilled and frozen segment we currently see the improvement of operating results – sales growth rate recovers and already in July we see the revenue growth as compared to the same period of the previous year. The Company reduces the stock of Far Eastern and Russian pelagic fish with low gross margin and continues to increase sales of salmon and trout including regional sales. We continue to expand our regional network – in the first half of 2012 regional trade representatives started to work in Orel, Noyabrsk, Vladikavkaz and Arkhangelsk.

In ready-to-eat segment the main target for 2012 is to increase the segment’s marginality. In order to achieve it the Company rejects to sell branded products on tender basis required by a number of retail chains that work in discounter format. In the third quarter of 2012 we plan to launch delicacy red fish products in economy price segment and simultaneously launch the redesigned main delicacy red fish products line. In the second half of the year we will introduce a number of new products in delicacy red fish category as well premium price segment products. The sales of salmon roe of new fishing season have already started”.