Mowi achieved record-high volumes for the first quarter of 2021 in both its farming and consumer products segments, contributing to operational earnings before interest and taxes (EBIT) of EUR 109 million (USD 133.2 million), the same as the corresponding period of last year.
The Bergen, Norway-headquartered salmon farming company reported increased operational revenues of more than EUR 1 billion (USD 1.2 billion) for the opening quarter of the year – up from EUR 884.8 million (USD 1.1 billion) in Q1 2020 – while the total harvest soared by more than 42,000 metric tons (MT), or 51 percent, to 125,468 MT gutted weight.
Of this volume, Norway contributed 74,992 MT, a significant increase over the 50,492 MT provided in Q1 2020. Scotland provided 18,273 MT, compared to 9,036 MT in Q1 2020; Canada 10,741 MT, compared to 8,066 MT; Chile 19,405 MT, compared to 13,669 MT; the Faroe Islands 901 MT, compared to 1,851 MT; and Ireland 1,157 MT, compared to no production in Q1 2020.
The harvest guidance for the full-year 2021 remains at 445,000 MT.
Delivering its results, Mowi said that the start to the year had been characterized by continued COVID-19 lockdown measures and high growth in the global supply of salmon, while prices had increased during the quarter due to strong demand.
“Although extensive lockdown measures are still in place, out-of-home consumption has started to improve in some markets compared with the previous quarter. Demand in retail has continued to be very good, something Mowi has yet again capitalised on through our integrated value chain,” Mowi CEO Ivan Vindheim said.
In its Q1 report, Mowi stated that it believes the demand for salmon “is on the road to full recovery,” driven by the COVID-19 measures becoming less restrictive.
It said that the increase in retail salmon sales was 20 to 25 percent during the quarter, and this growth came from both new and existing customers. It also expects both customer groups to increase their retail consumption post-pandemic, even with the foodservice segment reopening.
Overall, Mowi achieved an operational EBIT-per-kilogram of EUR 0.87 (USD 1.06), down from EUR 1.31 (USD 1.60) in Q1 2020. The operational EBIT of its salmon of Norwegian origin in the last quarter decreased from EUR 1.66 (USD 2.03) to EUR 0.98 (USD 1.20) per kilogram. Declines were also confirmed in its salmon of Canadian origin compared to a year previously – resulting in losses of EUR 0.36 (USD 0.40) in Canada Salmon of Chilean and Faroese origin also saw decreased EBIT-per-kilogram, reaching EUR 0.40 (USD 0.49) and EUR 0.48 (USD 0.59) per kilogram, respectively.
Its salmon of Scottish origin achieved a higher operational EBIT of EUR 1.46 (USD 1.78) per kilogram, while its Irish salmon was at EUR 4.55 (USD 5.56) per kilogram.
Farming costs decreased by EUR 0.42 (USD 0.51) from Q1 2020 to EUR 4.20 (USD 5.13) per kilogram.
“It is very encouraging to deliver record-high first quarter farming volumes and reduction in production cost. The decline in cost is driven by large volumes and cost initiatives over time. Farming volume growth and cost competitiveness are pivotal elements in Mowi’s strategy,” Vindheim said.
Mowi Consumer Products had another strong quarter with a record-high first-quarter operational EBIT of EUR 32.2 million (USD 39.3 million), and volumes partly driven by tailwinds from Lent and Easter season.
Consumer Products’ operating revenues were EUR 685.5 million (USD 837.3 million) in the quarter, up from EUR 628.5 million (USD 767.6 million) in Q1 2020. It sold 61,578 MT of product in the three-month period, up from 52,093 MT.
Meanwhile, Mowi Feed sold 93,938 MT of product and produced 100,296 MT in the quarter, compared with 93,768 MT and 99,370 MT previously. Its operational EBIT represented a loss of EUR 3.0 million (USD 3.7 million), compared with a loss of EUR 1.0 million (USD 1.2 million) in Q1 2021. The company said that the first-quarter is traditionally a low season for Mowi’s feed operations.
Photo courtesy of Mowi
