The world’s largest salmon farmer saw a 3.5% decrease in farming costs from the €6.05 per kilogram ($6.37/kg) recorded in the first quarter.
Norwegian salmon farming giant Mowi reported operating revenues of €1.34 billion in the second quarter of 2024, translating to an operational profit of €230 million.
The company attributed its improved results from the previous quarter to robust performance across all business segments, including record-high seasonal growth at sea and reduced farming costs.
Mowi reported a realized blended farming cost of €5.84 per kilogram ($6.15/kg) in the second quarter of 2024, representing a 3.5% decrease from the €6.05 per kilogram ($6.37/kg) recorded in the first quarter.
This reduction was driven by strong biological performance and lower feed prices. The company anticipates that positive scale effects from higher volumes and continued lower feed prices will further reduce the cost level in the second half of 2024.
In the second quarter, Mowi harvested a record 110,000 tonnes of salmon, while the biomass in the sea reached an all-time high, up 9.4% from the previous year.
CEO Ivan Vindheim highlighted that the company is on track to meet its volume guidance of 500,000 tonnes for the year, a significant increase from the 375,000 tonnes harvested in 2018.
Focus on volume
Vindheim emphasized Mowi’s strategic focus on volume growth, noting that the company is expected to outpace the industry in 2024, with anticipated growth of 5.3% compared to the industry’s 0.8%. He added that Mowi aims to continue growing faster than the wider industry by leveraging larger smolt and postsmolt in Norway and Scotland and increasing smolt stocking levels globally.
Mowi’s Consumer Products division, which focuses on value-added products, saw increased earnings compared to the first quarter, driven by strong operational performance. However, earnings were impacted by temporary market challenges in the US and margin pressure in Europe due to high raw material prices.
Vindheim expressed optimism about the underlying demand for European salmon and expected a gradual improvement in the American market as economic conditions recover.
Mowi Feed also reported seasonally record-high volumes, with feed demand in Europe up 14% compared to the same period last year. Vindheim noted that Mowi’s feed continues to perform well, with both feed consumption and net growth surpassing industry benchmarks. He expects sold volumes and earnings to improve further in the second half of the year, in line with seasonal trends.
