In a strong market, Mowi made an operational profit of EUR 207 million at record-high levels in the first quarter. This period was characterised by a surge in salmon prices in all markets due to a continued increase in global demand for salmon combined with low supply.
“The increase in salmon prices coming out of the pandemic has been impressive. Salmon is a fantastic product with great product features and the beneficiary of strong megatrends, and I firmly believe this will continue to boost demand going forward,” Mowi CEO Ivan Vindheim said.
Mowi Farming’s results improved substantially in the quarter, driven by high prices.
“I am pleased to see that our Norwegian Farming operations achieved record-high earnings and prices in the first quarter. It is also encouraging that our operations in Canada West are improving and delivering solid results,” Vindheim said.
Sound operational performance and raw material management
Mowi Consumer Products also delivered another good set of results considering the record high raw material prices, by means of sound operational performance and raw material management.
“It is comforting that Mowi’s processing business continues to deliver strong results despite significantly higher raw material prices. This demonstrates the value of Mowi’s integrated value chain and the organisation’s relentless quest for increased productivity and cost efficiency,” Vindheim said.
Mowi reported operational EBIT of EUR 207 million in the first quarter of 2022, compared with EUR 109 million in the corresponding quarter in 2021. Operational revenues in the quarter were EUR 1,095 million (EUR 1,022 million). Total harvest volume in the quarter was 96 600 tonnes gutted weight (125 469 tonnes). Full-year harvest guidance for 2022 is unchanged at 460,000 tonnes.
“The world economy is currently facing an unprecedented inflationary pressure, however, soaring salmon prices have so far more than offset increasing input prices for salmon.“
“We expect salmon to continue to stand out versus other animal protein sources due to its substantially lower feed conversion rate and energy usage, and its superior sustainability credentials,” Vindheim said.
Mowi’s Board has decided to pay a quarterly dividend of NOK 1.95 per share, consisting of NOK 1.44 per share in ordinary dividend and an extraordinary dividend of NOK 0.51 per share supported by a strong financial position and a favourable outlook.
New processing plant in Mowi Norway Region Mid
This good news adds to another given some weeks ago. Work on a new state of the art Mowi facility at Hitra in Norway is underway and hopes are high for the benefits it will bring.
Work on the new factory started in April and is scheduled for completion in the first half of 2024. The factory will have a production capacity of 100,000 tonnes and will replace Mowi’s current factory at Ulvan.
Speaking about the new facility, Olaf Skjærvik, director of Mowi Mid Region, said: “This will be a state-of-the-art factory built for the future. The project group has done a thorough job, and we are very happy that we now can start construction.
“The new factory will produce high-quality seafood in a much more efficient way than we do today. The building design is very modern and will create a more welcoming environment for our staff whilst optimising health and safety features.”
The new processing plant at Hitra will receive fish from sea harvest vessels only. Mowi Norway is now using four sea harvest vessels to supply its processing plants, and the South Region in Norway is already fully based on this technology. Building on this experience, Mowi intends to increase the capacity of these vessels and, in the long term, substitute well boat transport with sea harvest vessels which represent an improvement in fish welfare.