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Home News Center News Good results in a biologically challenging quarter for Mowi in Norway
May 08, 2024

Good results in a biologically challenging quarter for Mowi in Norway

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Mowi recorded revenues of 1.33 billion euros in the first quarter, compared with 1.36 billion euros in the corresponding quarter of 2023. Operational profit was 201 million euros in the quarter.

“The first quarter was challenging for Mowi in Norway due to winter sores and an unusually high prevalence of string jellyfish, in addition to a very cold winter. Consequently, I am pleased to see the situation in Norway has improved considerably in the second quarter. We are now vaccinating our smolt with an improved winter sore vaccine which has shown promising results so far, and we believe that this, together with other measures we are taking, will lead to a significantly improved situation next year,” said Mowi CEO Ivan Vindheim.

Outside Norway, Mowi delivered strong biological performance in its six other farming countries during the quarter.

“It is comforting to see biological improvements in Scotland compared with last year, and that our Chilean operation has coped well during the El Niño period. Mowi’s other farming regions abroad have also achieved good biological results in the quarter,” Vindheim said.

As a result of improved biology, falling feed prices and scale effects, Mowi expects reduced production costs in the second half of the year.

Mowi harvested 96 500 tonnes of salmon in the first quarter, leaving a seasonally record-high biomass in sea at quarter end. This, combined with improved biological performance in Mowi Norway so far in the second quarter, means that group volume guidance of record-high 500,000 tonnes for 2024 is re-iterated, marking a new milestone in Mowi’s 60-year history Furthermore, this would correspond to an increase of 5.3% from last year, yet again significantly higher than the expected growth in the wider industry.

Since 2021 Mowi has focused heavily on releasing larger smolt to sea. CEO Ivan Vindheim is certain that this strategy will lead to further growth and improved biological KPIs in the coming years.

“By the end of 2024 Mowi will have capacity to produce almost 40 million postsmolt, equivalent to a share of approximately 25% of the group’s total smolt. In Norway, Mowi’s postsmolt share will be approximately 50%, when excluding Region North from the equation for natural reasons. This is expected to drive license utilisation higher and at the same time contribute to improved fish welfare and survival rates,” said Vindheim.

Mowi Consumer Products, the group’s secondary processing business, delivered good operational performance in the first quarter, and increased sold volumes year-on-year on strong European retail demand.

“European salmon prices have been strong so far this year, however, prices for American salmon have been weaker. We believe American salmon prices will strengthen over time as we see practically no supply growth this year and limited supply growth in the coming years,” said Vindheim

Mowi Feed also had a good quarter, setting a new record for volumes sold in what is expected to be another year of all-time high volumes and earnings for the group’s feed operation following record-high harvest volumes for Mowi Farming.