August 25, 2021
Mowi achieves higher EBIT in Q2, 2021
Mowi has achieved an operational earnings before interest and taxes (EBIT) of €137 million (US$161 million) in the second quarter of 2021, compared with €99 million (US$116.3 million) in the corresponding quarter of 2020.
Strong demand for salmon drove prices higher in all markets in the quarter and resulted in better earnings for Mowi. Spot prices soared by 18% in Europe and close to 50% in the Americas. Generally less restrictive COVID-19 measures have sparked foodservice demand whilst retail demand holds up at a high level.
"Demand for salmon has strengthened as COVID-19 measures have become less restrictive in most countries. The demand response was impressive during the quarter with approximately 25% higher global salmon prices year-on-year despite a relatively high global supply growth of 9% including frozen inventory release from Chile," Mowi chief executive officer Ivan Vindheim said.
Profits in Mowi Farming improved on the back of higher prices and stable harvest volumes and cost. Mowi Consumer Products had yet another a good quarter with record-high volumes for a second quarter.
To strengthen focus and leadership resources and adopt an even more hands-on approach than previously, Mowi has decided to split up by far its largest farming unit (Norway Region Mid) into two new regions, West and Mid.
"Fish farming is still very much about the details and craftmanship which call for a great deal of hands-on management particularly in the more biologically challenging areas. This reorganisation will enable us to improve our operational performance, including productivity and cost, in this important farming area for Mowi," Vindheim said.
Mowi entered into a new five-year green €1.8 billion (US$2.1 billion) facility with its bank consortium in the quarter at very attractive terms.
"Sustainability is deeply engrained in the Mowi culture and I am very pleased that we have reached 85% green and sustainable financing with this facility," Vindheim said.
Several MOWI branding launches were undertaken during the quarter including MOWI Pure in Belgium, MOWI Gourmet and Signature in Italy and MOWI Sushi in Spain.
"We continue our long-term quest to decommoditise the salmon category through our MOWI branding strategy, and it is exciting to see how well our branded products are being received by consumers throughout Europe, Americas and Asia," Vindheim added.
Mowi reported operational revenues of €1,000 million (€911 million) in the quarter. Total harvest volume in the quarter of 107,977 tonnes gutted weight (104.303 tonnes) was in line with guidance. Full-year harvest guidance for 2021 is increased slightly to 450,000 tonnes from 445,000 tonnes.