Mowi falls short of Q3 harvest guidance, earnings fall

Published on
October 15, 2020

Bergen, Norway-headquartered Mowi achieved a company-wide salmon harvest of 126,000 metric tons (MT) in the third quarter of this year, representing a volume increase of 9,000 MT compared to the corresponding period of 2019 – but 2,000 MT lower than its previous guidance.

According to its latest trading update, its Norwegian operations produced 76,500 MT of gutted-weight equivalent (GWE) salmon in the last quarter, up from 63,500 MT in Q3 2019. At the same time, Chile’s harvest of 16,500 MT was 2,500 MT more than a year previously. However, these increases were partly offset by reduced Scottish and Canadian harvests of 16,000 MT and 12,000 MT, respectively.

A further 3,000 MT was harvested in Ireland, which was 50 percent more than in Q3 2019, while the company’s Faroese operations also contributed 2,000 MT, which was on par with last year.

Mowi achieved operational earnings before interest and taxes (EBIT) of approximately EUR 80 million (USD 93.7 million) in the last quarter, down from EUR 148 (USD 173.4 million) in Q3 2019, EUR 207 (USD 242.5 million) in Q3 2018, and EUR 194 million (USD 227.2 million) in the corresponding quarter of 2017.

Mowi’s salmon also achieved lower EBITs-per-kilogram than in the previous year. Salmon of Norwegian origin achieved an EBIT-per-kilogram of EUR 0.85 (USD 1.00), Scottish an EBIT of EUR 0.35 (USD 0.41), Canadian a negative EBIT of EUR -0.55 (USD -0.64), and Chilean origin an EBIT of EUR 0.55 (USD 0.64).

Operational EBITs of its salmon from Irish and Faroese origin for the same period amounted to EUR 1.85 (USD 2.17) and EUR 1.30 (USD 1.52), respectively.

The trading update also stated that the reported net interest bearing debt (NIBD) was approximately EUR 1.46 billion (USD 1.7 billion) at the end of the quarter.

Mowi’s full Q3 2020 report will be released on 4 November.

Photo courtesy of Mowi

Contributing Editor reporting from London, UK

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