Mowi Scotland had higher earnings but lower profit margin last year

Salmon farmer Mowi Scotland sold almost two-thirds of its fish on contract last year, just as it did in 2023, the company says in its newly-published annual report for 2024.

Mowi, which supplies UK retail heavyweight Sainsbury, increased harvest volumes by 20% to 66,000 gutted weight tonnes last year, and slightly increased its contract proportion from 62% in 2023 to 63%.

Turnover was £658.3 million, up by 40.3% compared to the £469.1m revenue made in 2023. Operating profit was £53.3m, up by 9.7% on the £48.6m made the year before, although operating profit as a percentage of turnover fell to 8.1% (2023: 10.4%).

Positive trends

Profit on ordinary activities before taxation was £48.2m, higher than the £43.7m made in 2023 but representing a lower percentage of sales revenue (7.32%) than in 2023 (9.32%). The decrease was said to be predominantly driven by the fee from Norwegian parent company Mowi ASA related to the Mowi brand and related marketing intellectual property.

Post-tax profit was £36.5m, up by 8% from the £33.8m post-tax profit made in 2023.

“Financial performance of the company has been satisfactory over the last five years with, on average, double digit operating profitability,” directors Ben Hadfield, Piotr Kapinos, and Scott Nolan wrote in a strategic overview.

“In the view of the directors, the positive market trends should continue in the future with increasing consumer demand for seafood as a source of protein and the growing consumer awareness of the advantages to the environment and the sustainability of salmon production in comparison to other animal protein production.”