Earnings almost double to reach record-high levels for Mowi
In a strong market, Mowi made an operational profit of 207 million euros at record-high levels in the first quarter.
Mowi’s first quarter 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.
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.