Trouble in Canada pulled down Mowi’s Q3 profits

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High mortality, in both eastern and western parts of Canada, lowered the Mowi result below expectations for the third quarter.

A trading update on Monday morning states that Mowi had an operational EBIT of approximately 136 million euros in the quarter – up from 80 million euros in the same quarter in 2020. The result was negatively affected by 11 million euros from extraordinary mortality. This is linked to toxic algal blooms in western Canada (five million euros) and oxygen deprivation in eastern Canada (six million euros).

Analysts expected in advance that Mowi would earn 136 million euros in the quarter.

Production cost farming the country of 4.59 euros per kilogram, of which the extraordinary costs in Canada represented a loss of 0.09 euros per kilogram.

Mowi harvested 117,000 tonnes in the third quarter of the year. This volume was distributed as follows to the company’s production regions:

  • Norway: 71,000 tonnes
  • Scotland: 15,000 tonnes
    Chile: 15,000 tonnes
  • Canada: 11,000 tonnes
  • Ireland: 2,000 tonnes
  • Faroe Islands: 3,000 tonnes

In connection with the presentation of the result for the second quarter, Mowi guided a harvest volume of 110,000 tonnes for the third quarter.

EBIT per kilo was as follows:

  • Norway: 1.40 euros
  • Scotland: 0.90 euros
  • Chile: 0.90 euros
  • Canada: 0.00 euros
  • Ireland: 1.85 euros
  • Faroe Islands: 0.85 euros

EBIT for Consumer products was 22 million euros and feed was 10 million euros.

The company’s net interest-bearing debt was EUR 1,150 million at the end of the quarter.

Mowi will present its report for the third quarter on November 10.