EWOS result marked by feed costs, brand sale

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EWOS, the Norway-based aquafeed business of international feed outfit, Cargill, has reported a 2017 net-profit of NOK 747 million (USD 92.7 million), a result that wipes clean a 79-million-kroner loss in 2016, as an earlier brand sale continues to leave its mark.

The company has been put under the accounting system of its American parent company, which this week notched second-quarter 2017 adjusted operating earnings (for the period ending November 30th, 2017) of USD 948 million, or down eight percent from the year-ago period. EWOS, for the adjusted year ending 31 May 2017, earned pre-tax profit of NOK 797.6 million on NOK 6.548 billion (USD 989.7 million) in turnover.

EWOS, a giant in salmon feed, sold its EWOS brand name to Can Technologies in September 2016 (still part of its fiscal 2017) for NOK 582 million and, adjusted for that sale, the company’s 2017 net-profit was NOK 170 million (USD 21 million).

EWOS said that despite higher prices achieved for its feed, lower average volumes were the prevailing condition of the reporting period. Raw material costs for fish oil, fish meal and soya protein concetrates reached NOK 4.0 billion (USD 496.32 million), as prices rose and currency losses accrued.

Company accounting also revealed the Norwegian feed market, dominated by salmon, had grown by a percentage point to 1,718,000 tonnes in 2017. The reasons given were better results in the battle against sea lice.

Kontali analysts say three percent growth is expected in EWOS’s home market of Norway through 2018.

Meanwhile, parent company Cargill reported its second-quarter (2018) results (which include livestock feed) rose eight percent to USD29.2 billion!

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