October 25, 2023

 

Mowi anticipates earnings dip in Q3 2023 despite record salmon harvest

 

Salmon farming company Mowi has projected a decrease in its earnings for Q3 2023, as revealed in its recent trading update posted on the Oslo Børs, SeafoodSource reported.

 

The company expects its operational earnings before interest and taxes (EBIT) to amount to approximately EUR 203 million, a decline from its Q3 2022 EBIT of EUR 240 million.

 

This dip in earnings comes despite Mowi achieving a record-high quarterly harvest volume, reaching 135,000 metric tonnes (MT) in gutted weight for Q3 2023, compared to its 134,000 MT harvest in the same period last year.

 

Notably, the Norwegian region remains Mowi's primary harvest area, yielding 86,000 MT of gutted-weight salmon, slightly down from the 87,500 MT harvested in Q3 2022.

 

Chile, Mowi's second-largest region in terms of volume, reported a harvest of 17,500 MT of gutted-weight salmon for Q3 2023, a modest increase from the 17,000 MT harvested in Q3 2022.

 

Scotland, the third-largest region, achieved a Q3 2023 harvest of 15,000 MT in gutted weight, up from the 14,500 MT harvested in Q3 2022.

 

Conversely, salmon farming in Canada experienced a substantial decrease from Q3 2022, dropping from 11,000 MT to 7,500 MT in Q3 2023. Ireland's harvest remained constant at 2,000 MT of salmon, while the Faroe Islands saw a slight improvement, reaching 2,500 MT compared to 2,000 MT in Q3 2022.

 

The final addition to the total harvest was from Iceland, stemming from Arctic Fish, in which Mowi obtained a controlling stake in November 2022. This location reported a harvest of 4,500 MT of salmon in the quarter.

 

Mowi's EBIT per kg fell in Q3 2023 across most divisions. The Norwegian division posted an EBIT per kg of EUR 2.15, down from the EUR 2.55 recorded in Q3 2022. Similarly, the EBIT per kg in Chile decreased to EUR 0.50, down from EUR 1.25 in Q3 2022.

 

Conversely, the Faroe Islands experienced an increase in EBIT per kg to EUR 1.90 in Q3 2023, up from EUR 1.05 per kg in Q3 2022. Scotland also saw a slight increase, reaching EUR 0.65 per kg, compared to EUR 0.30 in Q3 2022. Ireland reported a significant improvement, shifting from a loss of EUR 1.20 per kg in Q3 2022 to a gain of EUR 0.80 in Q3 2023.

 

Canada continued to experience a declining performance per kg, with the region reporting a loss of EUR 0.60 per kg in Q3 2023, down from the EUR 0.35 loss in Q3 2022.

 

Mowi anticipates releasing its full Q3 2023 report on 8 November.

 

-      SeafoodSource