Improved results for Mowi on strong demand for salmon
(Bergen, 25 august 2021) Mowi achieved an operational EBIT of EUR 137 million in the second quarter of 2021, against the euro 99 million in the corresponding quarter of 2020.
Strong demand for salmon pushed prices higher in all markets during the quarter and resulted in better profits for Mowi. Spot prices climbed 18% in Europe and nearly 50% in the Americas. The generally less restrictive Covid-19 measures have triggered catering demand while retail demand remains high.
“Demand for salmon has grown as Covid-19 measures have become less restrictive in most countries. The demand response was impressive in the quarter with world salmon prices roughly 25% higher year-over-year despite relatively high global supply growth of 9%, including the release of frozen stocks from Chile, ”said Ivan Vindheim, CEO of Mowi.
Mowi Farming’s profits improved with higher prices and stable harvest volumes and costs. Mowi Consumer Products had another good quarter with record volumes for a second quarter.
New agricultural region in Norway
To strengthen focus and leadership resources and to take an even more hands-on approach than before, Mowi decided to split by far its largest farming unit Norway Region Mid into two new regions; West and Middle.
“Fish farming is still very details and craftsmanship oriented, which requires practical management, especially in the most biologically difficult areas. This reorganization will allow us to improve our operational performance, including productivity and costs, in this important agricultural area for Mowi, ”said Vindheim.
Mowi reached 85% green funding
Mowi concluded a new green facility of 1.8 billion euros over 5 years with its banking consortium during the quarter on very attractive terms.
“Sustainability is deeply embedded in the Mowi culture and I am very happy that we have achieved 85% green and sustainable funding with this facility,” said Vindheim.
The expansion of the MOWI brand
Several MOWI brand launches were undertaken during the quarter, including MOWI Pure in Belgium, MOWI Gourmet and Signature in Italy and MOWI Sushi in Spain.
“We are continuing our long-term quest to trivialize the salmon category through our MOWI branding strategy, and it is exciting to see how well our branded products are received by consumers across Europe, the Americas and Asia, ”Vindheim said.
Mowi reported operating revenue of 1,000 million euros (911 million euros) in the quarter. The total harvest volume during the quarter of 107,977 tonnes gutted weight (104,303 tonnes) was as expected. The harvest forecast for the whole of 2021 is slightly increased to 450,000 tonnes from 445,000 tonnes.
The board of directors of Mowi has decided to pay a quarterly dividend of NOK 1.96 per share, consisting of NOK 0.96 per share as an ordinary dividend and an extraordinary dividend of NOK 1.00 per share supported by a situation solid financial position and favorable outlook.
For more information, please contact:
Kristian Ellingsen, CFO, +47 905 14 275
Kim Galtung Døsvig, Head of International Relations and Head of Treasury, +47 908 76 339
Ola Helge Hjetland, Group Communications Director, +47 970 67 932
About Mowi ASA
Mowi is the world’s leading seafood company and the world’s largest producer of farmed salmon. As the world’s leading seafood company with an end-to-end supply chain, Mowi brings premium salmon and other seafood to consumers around the world.
Based in Bergen, Norway, Mowi employs 12,000 people in 25 countries around the world and is listed on the Oslo Stock Exchange.
For more information, please visit www.mowi.com.
This release may be deemed to include forward-looking statements, such as statements relating to Mowi’s objectives and strategies, salmon prices, the ability to increase or vary harvest volume, production capacity, market trends. seafood industry, restructuring initiatives, exchange rate and interest. fluctuations in rates, expected research and development expenses, business prospects and positioning with respect to market, demographic and price trends, strategic initiatives and the effects of any extraordinary events and various other matters (including developments concerning laws, regulations and government policies governing the industry and changes in accounting policies, standards and interpretations) on Mowi’s operations and results. Forward-looking statements are generally identified by words or phrases, such as “believe”, “expect”, “anticipate”, “intend”, “estimate”, “may increase”, “may fluctuate. “,” Plan “,” objective “,” “target”, “strategy” and similar expressions or future or conditional verbs such as “may”, “will”, “should”, “would” and “could”. Forward-looking statements are Mowi’s current estimates or expectations regarding future events or future results. Actual results could differ materially from those indicated by such statements, as the achievement of such results is subject to many risks and uncertainties. Mowi ASA’s annual report contains additional information about factors that could affect actual results, including: changes in the price of salmon, including the value of our biological assets; hedging of risks; risks associated with feeding of fish; economic and market risks; environmental risks; operational risks; risks associated with escapes, disease and sea lice; product risks; risks related to our acquisitions; financing risks; regulatory risks, particularly related to food safety, the aquaculture industry, processing, competition and the fight against corruption; risks of trade restrictions; the risk of litigation; tax and accounting risks; strategic and competitive risks; and reputational risks. All forward-looking statements included in this press release are based on information available at the time of publication, and Mowi assumes no obligation to update any forward-looking statements.
This information is subject to disclosure requirements in accordance with Section 5-12 of the Norwegian Securities Law.