How Mowi Is achieving record growth in a tight market
Mowi’s €1.44 billion revenue milestone in Q3 has set a new benchmark in the salmon industry, driven by a combination of strategic scaling and aggressive cost management. Here’s how the company is achieving its impressive growth.
With a harvest target of 500,000 tonnes for 2024 and an expected 520,000 tonnes for 2025, Mowi is well-positioned to maintain its growth trajectory. “We’re always looking to stay ahead of industry growth rates,” said CEO Ivan Vindheim at the release of the company’s quarterly results on Wednesday.
The company’s projected compound annual growth rate (CAGR) of 4.8% since 2018 outpaces the industry average of 2.7%. This scaling is supported by increased smolt releases and post-smolt deployment, which shorten production cycles and increase output.
Driving Down Costs in a Volatile Market
A key to Mowi’s record profit is its focus on cost control. Falling feed prices in Q3 helped reduce farming costs, and Mowi anticipates further reductions from economies of scale. The company’s five-year cost-saving programme, targeting €300-400 million in savings, aims to streamline operations across its production, feed, and consumer products divisions.
Mowi’s value-added products are a bright spot in its portfolio. The company’s Consumer Products division achieved record volumes and profitability in Q3, fuelled by solid retail demand and cost efficiencies. Mowi expects demand to grow in the restaurant sector as well, particularly as consumer purchasing power increases with wage growth and easing interest rates.
Mowi Feed also reported record results in Q3, reflecting increased demand from its farming division and higher seawater growth rates. The division’s performance underscores Mowi’s integrated approach, allowing it to control supply chain variables while scaling its core business.
Mowi aims to produce 600,000 tonnes of salmon by 2029.
