Mowi presents its Q2 report on August 19 and according to investment bank Kepler Cheuvreux, the exciting elements of the report will be the operating profit at the segment level, costs, dividends and guidance.
Although a good portion of the results and harvest volumes were made known at the presentation of the quarterly trading update two weeks ago, in particular, the issue of guidance and dividends is unclear.
“We believe that a dividend from Mowi is possible during the second quarter, although we do not necessarily hope for that,” wrote seafood analyst Christian Nordby in a report published by TDN Direkt.
The investment bank estimated that group-level costs fell by EUR 0.2 per kilo on a quarterly basis, with unchanged costs in Norway and a significant improvement in Scotland of about EUR 1 per kilo. Strong demand for retail products during the quarter could be a turning point for margins in this segment, explained Nordby.
Furthermore, the analyst estimated that Mowi will have an annual volume growth of two per-cent in the period 2021-2025, and assumes that operating expenses will stabilise at EUR 4.61 per kilogram in 2021, from EUR 4.69 in 2020.
The investment bank has a BUY recommendation with a price target of NOK 212. Mowi was last trading on the Oslo Stock Exchange on Thursday at NOK 164.10.