Strong salmon demand see improved results for Mowi

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Mowi achieves an operational EBIT of €137 million.

On Wednesday, Norwegian salmon giant Mowi released its results for the second quarter of 2021.

Mowi reported operational revenues of €1,000 million for the quarter. Total harvest volume in the quarter of 107,977 tonnes gutted weight was in line with guidance. Full-year harvest guidance for 2021 is increased slightly to 450,000 tonnes from 445,000 tonnes.

According to the report, strong demand for salmon drove prices higher in all markets in the quarter and resulted in improved earnings for the company. Spot prices soared by 18 per cent in Europe and close to 50 per cent in the Americas. While less restrictive Covid-19 measures have increased foodservice demand while retail demand has held up.

“Demand for salmon has strengthened as Covid-19 measures have become less restrictive in most countries. The demand response was impressive during the quarter with approximately 25 per cent higher global salmon prices year-on-year despite a relatively high global supply growth of 9 per cent including frozen inventory release from Chile,” said Mowi CEO Ivan Vindheim.

To strengthen focus and leadership resources and to adopt an even more hands-on approach than previously, Mowi has decided to split up by far its largest Farming unit Norway Region Mid into two new regions; West and Mid.

“Fish farming is still very much about the details and craftmanship which call for a great deal of hands-on management particularly in the more biologically challenging areas. This reorganisation will enable us to improve our operational performance, including productivity and cost, in this important farming area for Mowi,” Vindheim said.

Based on the company’s strong financial position and a favourable outlook, Mowi’s Board has decided to pay a quarterly dividend of €96 million or NOK 1.96 per share, consisting of NOK 0.96 per share in ordinary dividend and an extraordinary dividend of NOK 1.00 per share.