Mowi chief executive Ivan Vindheim pictured at Seafood Expo Global in Barcelona last month. He has praised a 'stellar operational performance' by staff for record-breaking results in Q1.
Mowi chief executive Ivan Vindheim pictured at Seafood Expo Global in Barcelona last month. He has praised a "stellar operational performance" by staff for record-breaking results in Q1.

Best quarter ever for Mowi

Salmon farmer made operating profit of £280m due to high prices and increased volume


Mowi achieved a record operating profit of €322 million (£280m) in the first quarter of 2023, compared to €207m in the corresponding quarter of 2022.

The company also achieved its highest ever quarterly revenue of €1.362 billion.

Mowi’s Q1 was characterised by record high salmon prices, as a result of low global supply of salmon and high demand.

“High prices and stellar operational performance by my 11,500 colleagues in 25 countries across the world made the first quarter Mowi’s best quarter ever. Compared with the first quarter last year, we are performing better on almost all indicators,” Mowi chief executive Ivan Vindheim said.

103,000 gwt

Norwegian-owned Mowi, the world’s biggest salmon farmer, produced 103,000 gutted weight tonnes of salmon in the first quarter, higher than previous guidance of 98,000 gwt.

In 2022, Mowi produced a record 464,000 gwt, and expects to grow further to 484,000 gwt in 2023. In the past five years, Mowi’s harvest volumes have grown by 109,000 gwt, or 5.2% per year, which is more than the industry average.

“Mowi's goal is to continue to capture market share in the salmon category in the coming years by growing our farming volumes, both organically and acquisitively,” Vindheim said.

Mowi Consumer Products, the company's secondary processing business, had another solid quarter and reported seasonally record-high results.

Good results for feed

The company’s feed production division also delivered strong results in the first quarter with record high Q1 volumes and operating profit.

“Our feed continues to perform very well with both feed consumption and net growth above industry benchmark levels. Although the start of the year is low season for feed operations, this business area delivered seasonally record-high operational earnings,” Vindheim said.

Vindheim has again warned that Norway’s proposed 35% extra tax on salmon and trout farming profits will harm the industry. The so-called resource rent tax will take the proposed total tax rate to 57% including corporate tax versus 62% previously, or about 75% with Norwegian wealth tax.

“This is completely disproportionate and not compatible with the Norwegian Government’s stated growth ambitions for the industry. If passed by Parliament, the new tax regime will be hugely detrimental to the Norwegian aquaculture industry,” Vindheim said.

Mowi's board has decided to pay a quarterly dividend of NOK 2.00 (€0.17/£0.15) per share.