Record high volumes for Mowi in 2020
Mowi achieved all-time high volumes in all divisions in 2020, harvesting 440 000 tonnes of salmon, selling 240 000 tonnes of value-added products, and producing 540 000 tonnes of feed.
Mowi’s farming division recorded all-time high harvest volumes for the quarter and for the full year. Consumer Products continued to benefit from the shift in demand towards elaborated products, and delivered all-time high quarterly and full-year volumes. Feed also delivered another good set of results, and similarly to Consumer Products delivered record quarterly and full-year volumes.
“I would like to take this opportunity to thank all my colleagues at Mowi for delivering record-high volumes in all divisions in an extremely challenging year. At the same time we have managed to keep everyone safe during the Covid-19 pandemic so far by employing the strictest biosecurity measures across our business,” Mowi CEO, Ivan Vindheim said.
The strength of Mowi’s integrated value chain during these unprecedented times was demonstrated yet again as the Consumer Products division continued to capitalise on the shift in consumer demand from foodservice to retail. Mowi has produced more value-added products than ever through its downstream facilities, and the development in the retail market continues to be strong.
Covid-19 impacting results
Mowi’s results in the fourth quarter were significantly impacted by Covid-19 and extensive lockdown measures, together with seasonal high supply.
The company reported operational EBIT of EUR 49 million in the fourth quarter of 2020, compared with EUR 166 million in the corresponding quarter in 2019. Costs are reduced compared with the fourth quarter last year, hence the decline in results is explained by significantly lower prices.
“The pandemic still impacts out-of-home consumption to a large degree, and although retail sales are strong and offset some of the demand shortfall, overall demand was down by approximately 5%. However, we still strongly believe in the positive long-term market outlook for the industry. A significant share of new customers in retail are expected to permanently increase their retail consumption rates post Covid-19, even as the foodservice segment gradually re-opens in due course,” Vindheim said.
Mowi reported operational revenues of EUR 1 008 million (EUR 1 112 million) in the fourth quarter of 2020. Total harvest volume in the quarter of 126 634 tonnes gutted weight (116 314) was in line with guidance. Full-year harvest guidance for 2021 is unchanged at 445 000 tonnes.
Recognition of sustainability efforts
Mowi’s sustainability work has yet again been recognised with the company being named the most sustainable animal protein producer in the world in the 2020 Coller FAIRR Protein Producer Index and being recognised for leadership in corporate sustainability by global environmental non-profit CDP, securing a place on its prestigious ‘A List’ for tackling climate change.
“Sustainability will be even more important going forward for both Mowi and the salmon farming industry. By producing healthy and delicious food in the most sustainable manner, we are part of the solution,” said Vindheim.
The dividend has been an important component of Mowi’s financial strategy and to make dividend payments more predictable and transparent the Board has decided to operationalise the dividend policy by introducing ordinary and extraordinary dividends. Mowi’s ambition is to create long-term value for the shareholder through both positive share price development and a growing dividend in line with long-term earnings. Quarterly ordinary dividends shall under normal circumstances be at least 50% of underlying earnings per share. Excess capital will be paid out as extraordinary dividends. When deciding excess capital the Board of Directors will take into consideration expected cash flow, capital expenditure plans, financing requirements and appropriate financial flexibility. Further to this a long-term target level for net interest-bearing debt is determined, reviewed and updated on a regular basis.
Based on this, the Board has decided to pay NOK 0.32 per share in ordinary dividend in the first quarter of 2021, equivalent to 50% of underlying earnings per share in the fourth quarter of 2020.
The report and the presentation is available at our report page.