NOK 775 million in dividends after the biologically challenging Mowi quarter

Mowi reported revenues of 1.33 billion euros in the first quarter, compared to 1.36 billion euros in the same quarter last year. At the same time, the company achieved an operational profit of 201 million euros.

– The first quarter was biologically challenging for Mowi in Norway due to winter sores and abnormally high occurrences of pearl moths, as well as a very cold winter. I am therefore pleased that the situation has improved significantly in the second quarter. We are now also vaccinating our fish in Norway with the new winter sore vaccine, and the results so far are promising. Together with other measures we are taking, we therefore believe in a significantly better wound situation next year, says CEO of Mowi, Ivan Vindheim.

Outside Norway, the company’s six other farming countries have delivered strong biological performances.

Sees lower feed prices
– It is reassuring to see improvements in Scotland, as well as that our Chilean operation has handled the El Niño period in a good way. Our other farming regions abroad have also delivered strong biological results in the quarter, says Vindheim.

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

Mowi slaughtered 96,500 tonnes of salmon in the first quarter, and stands at the end of the quarter with a record high biomass in the sea. Combined with improved biological performance in the second quarter, this means that the company is sticking to its 2024 harvest target of a record 500,000 tonnes, which is a milestone in the company’s 60-year history. This corresponds to growth of 5.3 per cent from last year, which is once again significantly higher than the growth for the rest of the industry.

Since 2021, Mowi has invested heavily in increasing the size of the smolt before it is released into the sea. CEO Ivan Vindheim is certain that this will lead to further growth and improved biological performance in the years to come.

– Towards the end of the year, we will have the capacity to produce almost 40 million post smolt. This amounts to around 25 per cent of our total smolt production, and in Norway alone the figure will be closer to 50 per cent if one takes Region Nord out of the calculation for natural reasons. This will lead to both better utilization of licences, as well as increased fish welfare and survival, says Vindheim.

Strong demand
Mowi Consumer Products, the group’s further processing business, delivered good operations in the first quarter and increased sold volumes as a result of strong demand in European groceries.

– Prices for European salmon have been strong so far this year, while prices for American salmon have been weaker. We think the prices for American salmon will gradually strengthen with virtually no growth in supply this year, and with limited growth in supply in the years to come, says Vindheim.

Mowi’s feed production, Mowi Feed, also delivered a good quarter with record volumes in what is expected to be another year of volume and earnings records as a result of record volumes for the aquaculture business.

The board of Mowi has decided on a dividend of NOK 1.50 per share for the first quarter.