Mowi’s Q2 report highlights growth in Scottish operations
Mowi’s Q2 2024 report reveals an improvement in its Scottish operations, marked by a 20% increase in harvest volumes compared to the same period last year.
Mowi Scotland reported an operational EBIT of €43.6 million, slightly up from €41.8 million in Q2 2023, translating to an operational EBIT of €2.22 per kg, down from €2.29 per kg in the previous year. Financial EBIT, however, saw a significant decline to €5.7 million, compared to €17.3 million in Q2 2023.
This growth, from a low base, was largely driven by improved biological conditions, including lower seawater temperatures and better survival rates. Harvest volumes reached 19,591 tonnes gutted weight, up from 18,278 tonnes in Q2 2023, aligning with the company’s guidance on improved production.
The average price achieved for Scottish salmon was 4% above the reference price, an improvement from the 2% above reference price in the same quarter last year. Quality metrics, such as the superior share and harvest weights, remained stable or improved, contributing positively to the financial results. The contract share for the quarter was 50%, slightly up from 49% in Q2 2023.
Costs and Operational Efficiency
Mowi Scotland experienced a decrease in feed costs, driven by a downward trend in feed prices. Other seawater costs remained stable, with additional freshwater well boat capacity costs offset by savings in health-related expenses. Non-seawater costs, however, saw a slight increase.
Biological performance indicators such as production, mortality, feed conversion rates, and harvest weights all showed improvement compared to the previous year. Lower seawater temperatures—up to 1.5 degrees cooler than Q2 2023—reduced seasonal challenges like algae and jellyfish, though the presence of amoebic gill disease (AGD) remained relatively high. Mowi Scotland’s increased treatment capacity helped manage this ongoing issue.
Future Developments and Expectations
Mowi Scotland’s ongoing projects include the production of post-smolt in Loch Etive, with a planned transfer to sea sites in the fourth quarter, and the construction of a new broodstock facility at Ardessie, expected to be completed in 2025. These initiatives are seen as critical steps in further enhancing biological and financial performance.
Looking ahead, the company anticipates increased costs in the third quarter, primarily due to expected lower volumes.
