Farming news

Good results in a biologically challenging first quarter for Mowi in Norway

Mowi Feed also had a good quarter, setting a new record for volumes sold in what is expected to be another year of all-time high volumes and earnings.

May 9, 2024

Mowi recorded revenues of EUR 1.33 billion in the first quarter, compared with EUR 1.36 billion in the corresponding quarter of 2023. Operational profit was EUR 201 million in the quarter.

"The first quarter was challenging for Mowi in Norway due to winter sores and an unusually high prevalence of string jellyfish, in addition to a very cold winter. Consequently, I am pleased to see the situation in Norway has improved considerably in the second quarter. We are now vaccinating our smolt with an improved winter sore vaccine which has shown promising results so far, and we believe that this, together with other measures we are taking, will lead to a significantly improved situation next year," said Mowi CEO Ivan Vindheim.

Outside Norway, Mowi delivered a strong biological performance in its six other farming countries during the quarter. "It is comforting to see biological improvements in Scotland compared with last year, and that our Chilean operation has coped well during El Niño period. Mowi's other farming regions abroad have also achieved good biological results in the quarter," Vindheim said.

As a result of improved biology, falling feed prices and scale effects, Mowi expects reduced production costs in the second half of the year.

Mowi harvested 96,500 tonnes of salmon in the first quarter, leaving a seasonally record-high biomass in the sea at quarter end. This, combined with improved biological performance in Mowi Norway so far in the second quarter, means that group volume guidance of record-high 500,000 tonnes for 2024 is reiterated, marking a new milestone in Mowi's 60-year history Furthermore, this would correspond to an increase of 5.3% from last year, yet again significantly higher than the expected growth in the wider industry.

Mowi Feed also had a good quarter, setting a new record for volumes sold in what is expected to be another year of all-time high volumes and earnings for the group's feed operation following record-high harvest volumes for Mowi Farming.

Since 2021 Mowi has focused heavily on releasing larger smolt to sea. CEO Ivan Vindheim is certain that this strategy will lead to further growth and improved biological KPIs in the coming years.

"By the end of 2024, Mowi will have the capacity to produce almost 40 million post smolt, equivalent to a share of approximately 25% of the group's total smolt. In Norway, Mowi's post smolt share will be approximately 50%, when excluding Region North from the equation for natural reasons. This is expected to drive license utilization higher and at the same time, contribute to improved fish welfare and survival rates," said Vindheim.