Mowi reports higher earnings despite EUR 11 million hit from Canada mortalities
Bergen, Norway-headquartered Mowi achieved a company-wide salmon harvest of 117,000 metric tons (MT) in the third quarter of 2021, representing a volume decrease of 9,000 MT compared to the corresponding period of 2020, but 7,000 MT higher than its previous guidance.
According to its latest trading update, its Norwegian operations produced 71,000 MT of gutted weight equivalent (GWE) salmon in the last quarter, down from 76,500 MT in Q3 2020. At the same time, its Chilean harvest of 15,000 MT was 1,500 MT less than a year previously. Mowi’s Scottish and Canadian harvests amounted to 15,000 MT each, compared with 16,000 and 12,000 MT in Q3 2020, respectively. A further 2,000 MT was harvested in Ireland, which was 1,000 MT less than in the third quarter of 2020, while the company’s Faroese operations contributed 3,000 MT, which was up 1,000 MT year-over-year.
Mowi achieved operational earnings before interest and taxes (EBIT) of approximately EUR 131 million (USD 151.9 million) in the last quarter, up from EUR 80 million (USD 92.7 million) in Q3 2020, but short of Q3 2019’s EUR 148 million (USD 171.6 million).
The company said its operational EBIT was negatively impacted by EUR 11 million (USD 12.8 million) related to extraordinary mortalities in Farming Canada, of which EUR 6 million (USD 7 million) was caused by a plankton bloom incident in Canada West and EUR 5 million (USD 5.8 million) in connection with a low oxygen incident in Canada East.
Blended Farming cost per kilogram harvested was EUR 4.59 (USD 5.32). The Canadian mortalities affected total margin in the quarter by EUR 0.09 (USD 0.10) per kilogram.
Mowi’s salmon of Norwegian, Scottish, and Chilean origin achieved higher year-on-year operational EBITs of EUR 1.40 (USD 1.62), EUR 0.90 (USD 1.04), and EUR 0.90 (USD 1.04) per kilogram in the quarter. Its Canadian salmon operations achieved zero earnings in the quarter. Operational EBIT from its salmon of Irish origin amounted to EUR 1.85 (USD 2.15) in Q3, the same as last year, and a lower EUR 0.85 (USD 0.99) for the Faroes.
Mowi said the operational EBIT in Mowi’s Consumer Products segment was EUR 22 million (USD 25.5 million), up EUR 1 million (USD 1.2 million) compared with Q3 2020, while its Feed segment’s operational EBIT was EUR 2 million (USD 2.3 million) lower at EUR 10 million (USD 11.6 million). Its reported net interest-bearing debt was approximately EUR 1.15 billion (USD 1.3 billion) at the end of the quarter.
Mowi’s full Q3 2021 report will be released on 10 November.
Photo courtesy of Mowi