Improved results for Mowi on strong salmon demand
(Bergen, 25 August 2021) Mowi achieved an operational EBIT of EUR 137 million in the second quarter of 2021, compared with EUR 99 million in the corresponding quarter of 2020.
Strong demand for salmon drove prices higher in all markets in the quarter and resulted in better earnings for Mowi. Spot prices soared by 18% in Europe and close to 50% in the Americas. Generally less restrictive Covid-19 measures have sparked foodservice demand whilst retail demand holds up at a high level.
“Demand for salmon has strengthened as Covid-19 measures have become less restrictive in most countries. The demand response was impressive during the quarter with approximately 25% higher global salmon prices year-on-year despite a relatively high global supply growth of 9% including frozen inventory release from Chile,” Mowi CEO, Ivan Vindheim, said.
Profits in Mowi Farming improved on the back of higher prices and stable harvest volumes and cost. Mowi Consumer Products had yet another a good quarter with record-high volumes for a second quarter.
New Farming region in Norway
To strengthen focus and leadership resources and to adopt an even more hands-on approach than previously, Mowi has decided to split up by far its largest Farming unit Norway Region Mid into two new regions; West and Mid.
“Fish farming is still very much about the details and craftmanship which call for a great deal of hands-on management particularly in the more biologically challenging areas. This reorganisation will enable us to improve our operational performance, including productivity and cost, in this important farming area for Mowi,” Vindheim said.
Mowi reached 85% green financing
Mowi entered into a new 5-year green EUR 1.8 billion facility with its bank consortium in the quarter at very attractive terms.
“Sustainability is deeply engrained in the Mowi culture and I am very pleased that we have reached 85% green and sustainable financing with this facility,” Vindheim said.
MOWI brand expanding
Several MOWI branding launches were undertaken during the quarter including MOWI Pure in Belgium, MOWI Gourmet and Signature in Italy and MOWI Sushi in Spain.
“We continue our long-term quest to de-commoditise the salmon category through our MOWI branding strategy, and it is exciting to see how well our branded products are being received by consumers throughout Europe, Americas and Asia,” Vindheim said.
Mowi reported operational revenues of EUR 1 000 million (EUR 911 million) in the quarter. Total harvest volume in the quarter of 107 977 tonnes gutted weight (104 303 tonnes) was in line with guidance. Full-year harvest guidance for 2021 is increased slightly to 450 000 tonnes from 445 000 tonnes.
Mowi’s Board has decided to pay a quarterly dividend of NOK 1.96 per share, consisting of NOK 0.96 per share in ordinary dividend and an extraordinary dividend of NOK 1.00 per share supported by a strong financial position and a favourable outlook.
For further information, please contact:
Kristian Ellingsen, CFO, +47 905 14 275
Kim Galtung Døsvig, IR Officer & 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 largest producer of farm-raised salmon in the world. As the first global seafood company with an end-to-end supply chain, Mowi brings supreme quality salmon and other seafood to consumers around the world.
With headquarters in Bergen, Norway, Mowi employs 12 000 people in 25 countries worldwide, and is listed on the Oslo Stock Exchange.
For more information, please visit www.mowi.com.
Forward looking statements
This release may be deemed to include forward-looking statements, such as statements that relate to Mowi’s goals and strategies, salmon prices, ability to increase or vary harvest volume, production capacity, trends in the seafood industry, restructuring initiatives, exchange rate and interest rate fluctuations, expected research and development expenditures, business prospects and positioning with respect to market, demographic and pricing trends, strategic initiatives, and the effects of any extraordinary events and various other matters (including developments with respect to laws, regulations and governmental policies regulating the industry and changes in accounting policies, standards and interpretations) on Mowi’s business and results. Forward-looking statements are typically identified by words or phrases, such as “believe,” “expect,” “anticipate,” “intend,” “estimate,” “may increase,” “may fluctuate,” “plan,” “goal,” “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 of future events or future results. Actual results could differ materially from those indicated by these statements because the realization of those 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 to the price of salmon including the value of our biological assets; hedging risks; risks related to fish feed; economic and market risks; environmental risks; operational risks; risks related to escapes, disease and sea lice; product risks; risks related to our acquisitions; financing risks; regulation risks including relating to food safety, the aquaculture industry, processing, competition and anti-corruption; trade restriction risks; litigation risks; tax and accounting risks; strategic and competitive risks; and reputation risks. All forward-looking statements included in this release are based on information available at the time of the release, and Mowi assumes no obligation to update any forward-looking statement.
This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.
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