Despite seasonally high volumes and high demand, Mowi earned less in the consumer market.
During Tuesday’s quarterly presentation at Felix Conference Center in Oslo, Mowi presented figures showing record-high harvest volumes in the first quarter, their highest ever earnings in Chile, and almost a doubling of harvest volume in Scotland, year by year.
On the less positive side, consumer products, which with EBIT of EUR 5.8 million, has earned considerably less than at the same time last year. EUR 22.1 million was in the segment for the first quarter of 2018. This despite a higher volume in 2019.
Operational EBIT in the segment fell to 1.0 per cent in the quarter, compared with 4.1 per cent in the same quarter in 2018.
CEO Alf-Helge Aarskog reported on strong demand and a favourable trend when it came to increased sales, while at the same time acknowledging that the competition is tough in the VAP segment.
“We’ve noticed competition in this market, which clearly affects the price achievement and earnings. It has definitely been a tough segment. On fresh fish, it looks good, but it is worse when it comes to smoked products,” he told SalmonBusiness.
The MOWI brand was launched for the first time in the quarter in Poland. The products are made available in some of the world’s largest grocery chains.
Even as earnings have a negative development during the quarter, Aarskog said he believed that it’s important for Mowi to continue the development in the direction of the consumer market.
“We believe that what we do helps to change the whole industry. And we’re going to continue with the one we do. This is important to us because it’s where we develop new products,” said Aarskog.
In the quarterly report, Mowi wrote that competition in Europe will have a negative impact on earnings in the second quarter as well.