Mowi Reviews Strategy for Its Feed Division
Mowi has announced a strategic review of its integrated Feed division, paving the way for an assessment of all available options, which may include a sale. This decision underscores Mowi's commitment to refining its operations and enhancing its overall efficiency in the competitive seafood industry.
Financial Performance of the Feed Division
In the recent fiscal year, Mowi's Feed division reported operating revenues totaling EUR 1,122 million, alongside an Operational EBITDA of EUR 62 million. Notably, the division's assets include feed mills located in Norway and Scotland, boasting a combined production capacity of 700,000 tonnes. This strong capability enabled the Feed division to fulfill nearly all of Mowi’s feed requirements for its European salmon farming operations in the past year.
Expansion and Employment
The feed mills are not just vital assets; they also play a significant role in Mowi's operational framework, supporting a workforce of 140 full-time employees. The company is actively investing in growth, with a 60,000 tonnes capacity expansion currently underway that is expected to be fully operational by the second quarter of 2026.
Growth and Strategy Shifts
Mowi's journey has been impressive; it has evolved from producing 400,000 tonnes of salmon to nearly 600,000 tonnes, all while expanding its operations across seven countries and managing 11 farming regions. This expansion has introduced new complexities into the business, prompting the need for strategic reassessment. Ivan Vindheim, the CEO of Mowi, emphasized that this is an opportune moment to review how the Feed division should be structured moving forward.
Partnership with Arctic Securities
To facilitate this critical review, Mowi has engaged Arctic Securities to guide the process. Although a structured review is being initiated, there is no guarantee that a transaction will materialize, nor any certainty regarding the terms if it does.
Future Updates and Communication
Mowi assures stakeholders that updates will be communicated as the process unfolds. However, the company will refrain from making further comments until a definitive agreement is reached, or the review process concludes.
About Mowi ASA
Mowi ASA is recognized as one of the leading seafood companies globally and is the foremost producer of farm-raised Atlantic salmon. The company operates across various regions, including Norway, Scotland, Ireland, the Faroes, Iceland, Canada, and Chile. Mowi prides itself on being a fully integrated seafood provider, delivering high-quality salmon and other seafood products worldwide, including under its MOWI brand.
Ranking as the most sustainable listed animal protein producer according to Coller FAIRR, Mowi employs approximately 11,800 people across 26 countries and is publicly listed on the Oslo Stock Exchange. With a reported turnover of EUR 5.6 billion in the previous year, Mowi continues to reinforce its commitment to sustainability and excellence in seafood production.
Frequently Asked Questions
What prompted Mowi to initiate a review of its Feed division?
Mowi is looking to enhance its operational efficiency and streamline its operations within the complexities of its rapidly growing business.
What financial performance has Mowi's Feed division achieved recently?
In the last fiscal year, the Feed division generated operating revenues of EUR 1,122 million and an Operational EBITDA of EUR 62 million.
What are the key assets of Mowi's Feed division?
The division includes feed mills in Norway and Scotland, with a combined production capacity of 700,000 tonnes, crucial for meeting Mowi’s salmon farming needs.
How many employees does Mowi have globally?
Mowi employs about 11,800 people across 26 countries, making it a significant player in the global seafood market.
Is Mowi planning to sell its Feed division?
While the review may include assessing a potential sale, there is currently no certainty regarding any transaction or its terms.
