Bergen, Norway, -headquartered Mowi ASA has reported first-quarter 2024 revenues of €1.33 billion, compared with €1.36 billion generated in the corresponding quarter of last year. Its Q1 2024 operational profit was €201 million.
Announcing the Atlantic salmon farming group’s latest results, Mowi CEO Ivan Vindheim advised that the first-quarter had been 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,” he said.
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 Q1 2024, 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.
This volume would also correspond to an increase of 5.3% from last year, which Mowi said would be significantly higher than the expected growth in the wider industry.
Since 2021 Mowi has focused heavily on releasing larger smolt to sea, with Vindheim certain that the 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 post-smolt, equivalent to a share of approximately 25% of the group’s total smolt. In Norway, Mowi’s post-smolt 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,” he said.
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,” Vindheim said.
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.
Mowi’s Board has decided to pay a quarterly dividend of NOK 1.50 per share.
