Mowi ends 2021 on a record

Mowi ended 2021 with record revenues of just over €4.2bn (£3.5bn), the company said today.

It also sold 466,000 tonnes of salmon and a record 248,000 tonnes of value-added products.

Overall, Mowi recorded an operating EBIT (earnings before interest and tax) of €146 million (£122 million) in the fourth quarter of 2021, compared to €49 million (£41 million) in the fourth quarter of 2020 .

Mowi expects to distribute a total of NOK 724m (£60m) in stock dividends in the final quarter.

Reporting its results for the fourth quarter of the year, the world’s largest salmon farmer said the recovery in demand for salmon had increased in the last three months of 2021 with prices significantly higher.

However, the group’s Scottish performance declined in the fourth quarter, partly due to high costs of treating biological issues.

It was a similar story with Mowi Ireland part of which was hit during the year by an algal bloom attack.

Mowi CEO Ivan Vindheim said: “The growth in demand for value-added products during the pandemic has been unprecedented and volumes remain at a very high level.

For 2022, the salmon price outlook is favorable and no growth in supply is expected for the year. Mowi is well positioned to take advantage of this with its diversified and integrated value chain and low contract share. »

He added: “I would like to thank all my 12,000 colleagues at Mowi for their dedication and hard work in 2021, in a difficult pandemic environment.”

Operating revenue in the quarter hit a record high of €1.15bn (£965m) from €1.8bn (£845m) 12 months earlier.

The total harvest volume in the quarter of 115,040 tonnes of eviscerated weight (126,634 tonnes in the fourth quarter of 2020) was above the indicative figure of 104,000 tonnes, mainly due to good growing conditions in Norway.

Mowi’s board of directors has decided to pay a quarterly dividend of NOK 1.40 per share, consisting of NOK 1.00 per share in ordinary dividend and an extraordinary dividend of NOK 0.40 per share supported by a situation solid financial position and a favorable outlook.

At Mowi Scotland, EBIT from operations was €7.3m (£6m) in the fourth quarter, compared to €20.4m (£17m) in the fourth quarter of 2020 .

Earnings were down compared to the fourth quarter of 2020, mainly due to harvesting at sites with higher cost levels.

Volumes were also somewhat reduced, but the effects were offset by improved prices. Scotland Financial EBIT was €13.7m (£11.5m) compared to €24.5m (£20m) in Q4 2020.

The aggregate price obtained was, however, 20% higher than the reference price during the quarter, while the contribution of the contracts compared to the reference price was positive in the fourth quarter of 2021 and 2020.

The fourth quarter harvest volume in Scotland was 12,002 tonnes of gutted weight (13,018 tonnes in the fourth quarter of 2020).

Mowi explained: “Due to high volumes in the first half of the year thanks to increased smolt stocking and improved biological performance, our Scottish operations harvested 22% more salmon over the course of the year. year 2021 versus 2020.”

“The overall biological situation has become a little more difficult in the second half of 2021, especially with regard to AGD [amoebic gill disease] and gill problems combined with low dissolved oxygen in October.

The company said that CMS (cardiomyopathy syndrome) also remains at a relatively high detection rate, but there continues to be a noticeable reduction in cases of MP (pancreatic disease) and Pasteurella.

Mowi said: “Positive early detection of Shepherdess Skyensis Occurred at a location in the Western Isles and received treatment under the advice of a veterinarian.

Incident-related mortality losses in the quarter amounted to €6.7m (£5.6m), primarily related to treatment, AGD and CMS losses.

For Mowi Ireland, fourth quarter operating EBIT was €1.5 million (£1.26 million) compared to €3.1 million (£2.6 million) in fourth quarter 2020. The reduction from the comparable quarter was primarily due to increased costs due to an algal bloom (HAB) in Bantry Bay. But this was partly offset by improved prices and volumes. Costs increased compared to the comparable quarter mainly due to the impact of the HAB.