Cherkizovo Posts Mediocre Sales

One of Russia's leading meat producers Cherkizovo has reported a 3% year-on-year (y-o-y) decline in sales at its meat processing unit for the year ended December 31 2008, despite impressive volume gains in both its poultry and pork divisions. The results reflect the challenging operating environment the company was forced to endure in 2008. Inflation in particular wreaked havoc, swelling to an average of 13.3%, weighing down on consumer spending and increasing the company's input costs. Despite our forecast that inflation will ease slightly, Cherkizovo will probably be bracing itself for an even more challenging 2009 as the Russian economy

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