How Mowi Scotland doubled Q3 operating profit in tough market
Mowi Scotland’s third quarter operating profit more than doubled compared to the same period last year, Mowi said in its Q3 report published today.
The salmon farmer made operational EBIT of €26.8 million (approx. £23.6m), up from €12.7m in Q3 2024. The improved result was achieved against a background of lower prices for salmon.
“Q3 continued the positive trend for Mowi Scotland seen since Q1 2024 with regards to cost, volumes and operations,” wrote Mowi.
The company added: “Harvesting of sites with good cost performance contributed positively. This more than offset the effect of reduced prices.”
Highest EBIT per kilo
Mowi Scotland’s operational EBIT per kilo was €1.54 (Q3 2024: €0.83), which was the highest in the group in Q3.
“The price achieved by Mowi for salmon of Scottish origin was positively impacted by improved harvest weights, sale of differentiated products and positive contribution from contracts,” wrote Mowi.
Mowi Scotland’s high-end subsidiary, Wester Ross Fisheries, “contributed positively to price achievement in the quarter, with volumes increasing substantially on the back of strong sales to the US”.
Harvest volumes increased to 17,399 tonnes gutted weight (15,227 tgw), driven by increased smolt stocking and good production. At the end of Q3, Mowi Scotland’s year-to-date harvest volumes had reached a record-high 59,255 tgw (Q3 2024: 49,023 tgw).
Costs decreased compared to Q3 2024 due to good biological performance, lower realised feed prices, and reductions in other cost items including mortality cost.
Feeding performance was good, and feed conversion ratio improved from Q3 2024.
Costs are expected to increase in the fourth quarter on lower volumes and harvesting of sites with a higher cost level.
Ireland
Across the water, Mowi Ireland made a reduced operating profit of €700,000 (€4.3m) on a harvest of 3,010 tgw (3,663 tgw) after struggling with hellyfish and disease. Operational EBIT per kilo was €0.22 (€1.18).
“Earnings were negatively impacted by challenging biology in the quarter. However, volumes were good and high contract share contributed positively,” wrote Mowi.
“Cost was negatively impacted by jellyfish, CMS (cardiomyopathy syndrome) and SRS (salmonid rickettsial septicaemia). Costs are expected to increase in the fourth quarter on low volumes,” added the company.
Faroes
Further north, Mowi Faroes made a reduced operating profit of €1.3m (€1.8m) on a harvest of 2,367 tgw (3,051 tgw). Operational EBIT per kilo was €0.55 (€0.61).
“The decrease in earnings vs. Q3 2024 was driven by lower spot prices and lower volumes, partly offset by reduced cost. Biology was good in the quarter,” wrote Mowi.
“Mowi Faroes has full spot price exposure and achieved prices were positively impacted by good average weight and superior share.”
