Mowi posts record high turnover and volumes with new CEO at the helm

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“Notwithstanding the current issues with the Coronavirus, the medium and long term outlook for Mowi remains strong,” says CEO Ivan Vindheim ending a record 2019.

In a financial bulletin on the Oslo Stock Exchange on Wednesday morning, the salmon farmer wrote that it achieved an operational EBIT of EUR 166 million in the fourth quarter of 2019, compared with EUR 213 million in the corresponding quarter of 2018.

Harvest
For the full year, Mowi reported a record-high turnover of EUR 4 135 million and an operational EBIT of EUR 721 million.

Mowi harvested record-high 436 000 tonnes in 2019 and 116 000 tonnes in the fourth quarter, compared with 106 000 tonnes in the corresponding quarter and 375 000 tonnes for the full year of 2018.

Good year
“2019 was another good year financially for Mowi. Record high full-year volumes in all business areas, good salmon prices and relatively stable costs resulted in strong earnings and dividend distributions. I am very proud of the way my 15 000 colleagues have contributed to the great results,” said CEO Ivan Vindheim.

The Board of Directors has resolved to pay a quarterly dividend of NOK 2.60 per share, supported by “good results, a strong market outlook, and a solid financial position”.

Mowi reported operational revenues of EUR 1 112 million (EUR 1 074 million) in the fourth quarter of 2019. Harvest guidance for 2020 is maintained at 450 000 tonnes.

EBIT per kilo
Salmon of Norwegian origin achieved an operational EBIT per kilo of EUR 2.12 (2.44) in the fourth quarter, while salmon of Scottish and Canadian origin reported operational EBIT per kilo of EUR 1.24 and EUR -0.53 respectively (EUR 2.32 and EUR 1.42). Salmon of Chilean origin reported operational EBIT per kilo of EUR 0.79 in the quarter (EUR 1.25). Mowi Feed reported an operational EBIT of EUR 13.8 million (EUR 5.8 million). Mowi Consumer Products reported an operational EBIT of EUR 15.1 million (EUR 38.4 million).

“The salmon prices increased significantly in all markets during the quarter and in January on strong demand and tighter supply. Notwithstanding the current issues with the Corona virus, the medium and long term outlook for Mowi remains strong,” says Vindheim.

Mowi issued the first green bond in the industry of EUR 200 million in January 2020. The 5-year senior unsecured bond carries a coupon of EURIBOR + 1.60 per cent p.a. “The issuance was four times oversubscribed,” wrote Mowi.

“It is very encouraging to see the large interest in the market to financing Mowi as a company producing healthy and sustainable products,” says Vindheim.