Mowi nearly triples Q4 earnings, posts record harvests

A Mowi worker walks along the edge of a net pen.

Higher salmon prices helped Bergen, Norway-headquartered producer Mowi to achieve operational earnings before interest and taxes (EBIT) of EUR 145.8 million (USD 166 million) in the fourth quarter of 2021, almost trebling the EUR 49.4 million (USD 56.3 million) that it posted in the corresponding period of 2020.

Mowi’s operational revenue of almost EUR 1.15 billion (USD 1.3 billion) in the last quarter was up from EUR 1 billion (USD 1.1 billion) previously, while its harvest volume for the period decreased by 11,594 metric tons (MT) year-on-year to 115,040 MT gutted-weight.

The Q4 harvest was nevertheless above the previous guidance of 104,000 MT and contributed to Mowi’s largest-ever full-year volume of 465,600 MT. The company said its 6 percent increase over 2020’s record was driven by increased smolt stocking and strong growth conditions.

In Norway, the group’s largest and most-important farming region, Mowi produced a record-high 273,200 MT of salmon in 2021, while its operations in Scotland contributed 64,400 MT, Chile 66,000 MT, Canada 45,300 MT, Ireland 6,800 MT, and the Faroes 9,900 MT.

Mowi also achieved record revenues of EUR 4.2 billion (USD 4.8 billion) last year, up 12 percent on 2020, and sold an all-time best 247,577 MT of value-added products – earning EUR 95.5 million (USD 108.8 million).

“I am very pleased that our license utilization in Norway has improved over the past few years to exceed the industry average. This has laid the foundation for reaching all-time high harvest volumes of 466,000 MT,” Mowi CEO Ivan Vindheim said. “The growth in demand for value-added products during the pandemic has been unparalleled, and volumes remain at a very high level. For 2022, price prospects for salmon are favorable with no supply growth expected for the year. Mowi is in a good position to capitalize on this with its diverse and integrated value chain and low contract share.”

The company expects to harvest some 460,000 MT of salmon this year.

According to Mowi’s Q4 report, the operational EBIT of its salmon of Norwegian origin in the last quarter of 2021 was EUR 1.76 (USD 2.00) per kilogram, up from EUR 0.75 (USD 0.85) in Q4 2020. Operational EBIT increases were also seen in its salmon of Canadian, Chilean, and Faroese origin at EUR 0.04 (USD 0.05), EUR 0.64 (USD 0.73), and EUR 1.40 (USD 1.59) per kilogram, respectively.

Meanwhile, its fish of Scottish and Irish origin achieved lower operational EBITs of EUR 0.61 (USD 0.69), and EUR 0.94 (USD 1.07), respectively.

Also in the quarter, Mowi Feed reported an operational EBIT of EUR 7.9 million (USD 9 million), representing a decrease of EUR 5.8 million (USD 6.6 million) from a year previously, with 140,954 MT sold.

Mowi Consumer Products reported an operational EBIT of EUR 25.6 million (USD 29.2 million), down from EUR 34.8 million (USD 39.6 million), with 67,867 MT of products being sold.   

Photo courtesy of Mowi


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