Record Q2 operating profit for Mowi

The world’s biggest salmon farmer, Mowi, has reported a record operating profit of €320 million and record revenues of €1.23 billion for the second quarter of 2022. Operating profit was up by 133% compared to Q2 2021.

The result was built on record high spot prices and higher production volume in Norway, and comes despite lower income from Scotland, where a smaller harvest and high contract share prevented the company taking full advantage of the market.

“I am very pleased with our operational performance in the quarter and the way we have been able to capitalise on the high prices. I would like to thank the organisation for this achievement,” Mowi chief executive Ivan Vindheim said in a stock exchange announcement.

Spot market

Mowi sold 65% of its harvest volumes in the spot market.

“We have never before experienced spot prices at the levels seen in the second quarter, and this shows the potential to continue to increase the value of the salmon category over time given continued supply growth,” Vindheim said.

Revenues in the quarter were 23% higher than the €1 bn earned in the same period last year.

Total harvest volume in the quarter was 102,679 tonnes gutted weight (107,977 tgw), slightly above guidance of 99,000 tonnes. Full-year harvest guidance for 2022 is unchanged at 460,000 tonnes.

Farming division

Mowi’s farming division made an operating profit of €294 m in Q2, which is a record high.

“I am impressed with our farming operations this quarter, with good growth performance in sea and improved production. Mowi Norway stands out in particular, representing 70% of Group profit with an impressive margin,” said Vindheim.

Results from the Consumer Products and Feed divisions were solid.