Exceptional Financial Performance for Mowi in Recent Quarter
Mowi has achieved a remarkable milestone with operating revenues reaching EUR 1.44 billion in the latest quarter, translating into an operational profit of EUR 173 million.
Mowi's performance showcases its strength in the seafood industry. Ivan Vindheim, the CEO of Mowi, noted, "This was yet another good quarter for Mowi, with our best ever seawater production and harvest volumes of 161,000 tonnes. We’ve never had more fish in the sea, with biomass in the sea up 4.4% year-on-year at quarter end." This statement highlights the company's commitment to maintaining high production levels and embracing sustainable farming practices.
Targets for Future Growth and Harvesting
Mowi is on track to fulfill its harvest volume guidance for 2024, aiming for an impressive 500,000 tonnes. Additionally, the strong biomass levels support a volume goal of 520,000 tonnes in 2025. This ambitious target is a significant step toward Mowi’s ultimate goal of harvesting 600,000 tonnes of salmon by 2029.
The projected increase in harvest volume, which represents a growth of 145,000 tonnes since 2018, equates to a compound annual growth rate (CAGR) of 4.8%, significantly outpacing the industry average of 2.7%. This growth trajectory is set to enhance Mowi’s other key divisions – Consumer Products and Feed – thereby boosting overall company performance.
Sustainability and Cost Management Strategies
Mowi places a strong emphasis on sustainability and operational efficiency. The company reported a decrease in farming costs in the third quarter, attributable to lower feed prices and greater economies of scale due to increased production volumes. Continued reductions in feed prices are expected to positively impact overall costs. Furthermore, Mowi is implementing a cost savings program valued at EUR 300-400 million over the next five years, aiming to increase profitability and streamline operations.
The Consumer Products division delivered impressive results, benefitting from a strong operational performance and a favorable market environment with lower raw material costs. Vindheim expressed optimism regarding retail demand, accompanied by a potential rebound in the restaurant sector as consumer purchasing power improves due to falling interest rates and rising wages.
Milestones and Future Directions
Mowi Feed is set to have its best quarterly results, highlighted by record-high earnings and volumes. This is largely driven by good seawater growth and the high demand from Mowi's farming initiatives.
To reward its shareholders, Mowi's Board of Directors has declared a quarterly dividend of NOK 1.50 per share, reflecting the company's strong financial standing and commitment to returning value to investors.
About Mowi ASA
Mowi ASA stands as a leader within the global seafood industry and holds the title of the largest producer of farm-raised Atlantic salmon worldwide. The company is expected to harvest 500,000 tonnes of salmon in 2024 across seven countries, including Norway and Scotland, among others.
As a fully integrated seafood company, Mowi delivers high-quality salmon and other seafood products worldwide, partially under its well-known MOWI brand. It's noteworthy that Mowi has been recognized as the most sustainable publicly listed animal protein producer globally by Coller FAIRR, reflecting its commitment to responsible sourcing and production practices.
Headquartered in Bergen, Norway, Mowi employs roughly 11,600 individuals across 26 countries and reported a turnover of EUR 5.5 billion in 2023. This strong economic foundation enables Mowi to continue investing in sustainable growth strategies.
Frequently Asked Questions
What were Mowi's operating revenues for the recent quarter?
Mowi generated record-high operating revenues of EUR 1.44 billion in the latest quarter.
What is Mowi's production target for 2025?
The company aims to achieve a production volume of 520,000 tonnes by 2025, a significant growth since 2018.
How is Mowi managing costs in relation to production?
Lower feed prices and improved scales from higher volumes have contributed to Mowi's reduced farming costs.
What strategic goals is Mowi focused on?
Mowi aims to continue expanding its operations and increase harvests, targeting 600,000 tonnes of salmon by 2029.
How does Mowi plan to benefit shareholders?
The Board has approved a quarterly dividend of NOK 1.50 per share to reward its investors.
