Soaring demand drives record quarter for Mowi
Mowi had a record third quarter, with operating profit up more than 60 per cent on the same period last year.
The company, the world’s biggest salmon producer, which farms in Norway, Scotland, Ireland, Canada, Chile and the Faroes, saw revenues of €1,035 million and operational EBIT of €131 million, compared with €80 million in the corresponding quarter of 2020.
In Scotland, EBIT per kilo almost tripled to €0.90 per kg (€0.35), with operational EBIT up to €13.4 million (€5.7m).
Harvested volume in Scotland was down on 2020, though, at 14,968 gutted weight tonnes (16,114) and costs are expected to increase in the fourth quarter on reduced volumes and harvesting from sites with a higher cost level, said Mowi.
Overall, the company found that demand for salmon continued to recover, with improvements in foodservice sales and greater retail demand.
This led to a significant rebound in salmon prices compared with last year and increased earnings by 64 per cent year on year.
Mowi CEO Ivan Vindheim said the Q3 results were “particularly impressive” given that not all markets have fully recovered from Covid-19 measures.
“It's positive to see that the salmon market continues on the road to full recovery,” he said, announcing the company’s results this morning.
“The estimated value of salmon consumed globally in the third quarter increased by more than 30 per cent compared with last year and reached a new record high level for a quarter.”
Mowi Consumer Products recorded the best ever earnings in a third quarter, reflecting a shift towards value added products, said Vindheim.
Total harvest volume in the quarter of 117,115 tonnes gutted weight (125,773
tonnes) was above guidance of 110,000 tonnes, mainly due to good growth
conditions in Norway.
Harvest guidance for 2021 is increased to 455,000 tonnes, equivalent to 15,000 tonnes volume growth year on year. Next year, Mowi expects to harvest 460,000 tonnes, with plans to grow to 500,000 tonnes.