Mowi Scotland saw a significant improvement in its financial performance last year, the company reveals in its annual report today.

The 2021 operational EBIT or operational profit totalled €77.2m (£65.5m) against €46m (£39m) in 2020. The improvement, says Mowi, was due to improved cost and volumes on the back of better biological performance as well as increased prices in the market.

The operational EBIT per kg was €1.20 (£1.02) in 2021 compared with €0.87 (£0.74) in 2020.

Mowi’s total EBIT (compared to operational EBIT ) for salmon of Scottish origin almost trebled to €85.1m (£72.2m) compared with €30.2m (£25.6) in 2020. The total EBIT per kg was €1.32 (£1.12) in 2021 compared with €0.57 (£0.48) in 2020.

The Mowi report said: “The reference price in euros increased on positive market developments following a challenging year in 2020.

“Our price achievement for salmon of Scottish origin for the year ended December 31, 2021 was 17% above the reference price, compared with 24% above in 2020. Price achievement in 2021 and 2020 was positively affected by contracts in both years.”

However, Mowi said the biological situation in Scotland became more challenging in the second half of the year due to gill issues combined with seasonally low oxygen levels.

But costs are coming down. The total cost per kg for salmon of Scottish origin harvested in 2021 decreased by 3% thanks to improved biology, reduced costs at seawater sites and positive scale effects from higher volumes.

Commenting on the group’s global performance, Mowi CEO Ivan Vindheim, said in his annual report that 2021 saw market conditions gradually improving, with the impact of the Covid-19 pandemic on the wane in the main markets for salmon.

He continued: “Operationally, Mowi delivered all-time high volumes in both Farming and Consumer Products even as the pandemic continued to present a challenging environment.

“The company’s farming licence utilisation continued to improve in Norway, Mowi’s largest and most important farming region.

“With higher achieved prices and good operational performance, financial results improved compared with the year before. These achievements were only made possible by the dedication and hard work of Mowi’s employees.”

Vindheim said despite earlier problems, following an increase in vaccination for Covid-19, demand in the foodservice segment gradually improved over the course of the year, although still ending the year at levels lower than before the pandemic.

He added: “Demand in the retail segment however was once again stellar in 2021 and as of the end of the year demand for value-added products remained at levels well above what we saw before the pandemic.

“This positive retail performance resulted in strong overall demand and increased market prices compared with 2020 despite high supply volumes in the market, particularly from Norway, which saw the highest year-on-year volume growth of the last eight years.”

“As a result of these developments, spot prices improved in all markets, in turn causing earnings in our Farming division to increase compared with the year before. Even though the Covid-19 pandemic continued to present a challenging backdrop to 2021, there were many good achievements.”

He cited, among these, harvest volumes hitting the highest ever mark at 465,600 tonnes. Consumer Products produced a record-high 247,600 tonnes of value-added products through its downstream facilities as the division continued to benefit from the shift in consumer demand towards more home consumption of salmon.

Total revenues for the group were the highest ever at €4.2bn (£3.56bn).

Mowi’s CEO Ivan Vindheim

 

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