Mowi ends 2021 on a record high

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

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

Globally, Mowi reported an operational EBIT (earnings before interest and taxation) of €146m (£122m) in the fourth quarter of 2021, against €49m (£41m) in Q4 2020.

Mowi plans to distribute a total NOK 724m (£60m) in final quarter share dividends.

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

However, the group’s Scottish performance was down in Q4, due in part to high costs for 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 unparalleled, and volumes remain at a very high level.

For 2022, price prospects for salmon are favourable with no supply growth expected for the year. Mowi is in a good position to capitalise on this with its diverse 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 during 2021, in a challenging pandemic environment.”

Operational revenues in the quarter reached a record high of €1.15bn (£965m) against €1.8bn (£845m) 12 months earlier.

The total harvest volume in the quarter of 115,040 tonnes gutted weight (126,634 tonnes in Q4 2020) was above the guidance figure of 104,000 tonnes, mainly due to good growth conditions in Norway.

Mowi’s board has decided to pay a quarterly dividend of NOK1.40 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 strong financial position and a favourable outlook.

In Mowi Scotland, operational EBIT amounted to €7.3m (£6m) in the fourth quarter, down from €20.4m (£17m) in Q4 2020.

Earnings decreased from Q4 2020, mainly due to harvesting from sites with a higher cost level.

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

The overall price achieved, however, was 20% above the reference price in the quarter while contribution from contracts relative to the reference price was positive in the fourth quarter of both 2021 and 2020.

The Scotland fourth quarter harvest volume was 12,002 tonnes gutted weight (13,018 tonnes in Q4 2020).

Mowi explained: “Due to high volumes in the first half of the year on increased smolt stocking and improved biological performance, our Scottish operations harvested 22% more salmon in the full year of 2021 compared with 2020. “

“The overall biological situation has become somewhat more challenging during the second half of 2021, especially as regards AGD [amoebic gill disease] and gill issues combined with low dissolved oxygen during October.

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

Mowi said: “A positive early detection of Pasteurella Skyensis occurred in one location in the Western Isles and has received treatment according with veterinary advice.”

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

For Mowi Ireland, the Q4 operational EBIT amounted to €1.5m (£1.26m) compared with €3.1m (£2.6m) in Q4 2020. The reduction from the comparable quarter was mainly due to higher cost as a consequence of a harmful algal bloom (HAB) in Bantry Bay. But this was partly offset by improved prices and volumes. Costs increased from the comparable quarter mainly due to the HAB’s impact.