Good operations and higher salmon prices led Mowi to achieve its best quarterly results ever in Q2 2022, with record-high operational earnings and revenue.
The Bergen, Norway-headquartered producer’s second-quarter 2022 report indicated the company posted operational earnings before interest and taxes (EBIT) of EUR 320 million (USD 319.1 million), and a revenue of EUR 1.23 billion (USD 1.2 billion). The company highlighted that salmon prices reached new record levels in all markets during the quarter, based on strong demand and low supply, and also that Mowi’s financial results were driven by good harvest volumes – of which 65 percent were sold into the spot market.
“I am very pleased with our operational performance in the quarter and the way we have been able to capitalize on the high prices. I would like to thank the organization for this achievement,” Mowi CEO Ivan Vindheim said.
Vindheim said the company had never before experienced spot prices at the levels seen in the quarter, and that this showed the potential to continue to increase the value of the salmon category over time given continued supply growth.
Mowi’s operational EBIT of EUR 320 million in the period was more than double the EUR 137 million (USD 136.6 million) reported in the corresponding quarter of 2021, while the operational revenue total was up EUR 232 million (USD 231.4 million).
The company’s total profit for the period was EUR 353 million (USD 350.4 million), up from the EUR 126.9 million (USD 125.9 million) it earned in Q2 2021.
Its total harvest volume in the quarter was 102,679 metric tons (MT) gutted weight, compared with 107,977 MT in Q2 2021, although it was slightly above its previous guidance of 99,000 MT.
In Norway, the group’s largest and most-important farming region, Mowi produced 59,815 MT of salmon in Q2, while its operations in Scotland contributed 12,954 MT, Chile 14,400 MT, Canada 10,413 MT, Ireland 3,294 MT, and the Faroes 1,802 MT.
The full-year harvest guidance for 2022 is unchanged at 460,000 MT.
Mowi Farming had strong quarter with a record operational profit of EUR 294 million (USD 292.5 million), and Vindheim pointed to good growth performance in the sea and improved production.
“Mowi Norway stands out in particular, representing 70 percent of group profit with an impressive margin,” he said.
The company’s report also highlighted the company received permit renewals for operations in Mowi Canada West, a renewal that was part of a June 2022 Canada Department of Fisheries and Oceans announcement. That farming region had record-high earnings, achieving an operational EBIT of EUR 38.3 million (USD 38.0 million). That was on top of an improved cost-per-kilogram, which improved 12 percent from Q2 2021, Mowi said.
Mowi Consumer Products also performed well with continued high retail demand and a solid operational performance across its processing plants in Europe, the Americas, and Asia, according to Vindheim.
“Overall retail demand still remains at a good level, and I expect that the retail channel will continue to grow in the years ahead. The foodservice segment continues its post-pandemic recovery, which is positive for overall salmon demand,” Vindheim said.
Photo courtesy of Mowi
