Mowi reports big jump in profit for Q2

Mowi more than doubled its operational profit, year on year, during the second quarter of this year  the company disclosed in a trading update today, with Scotland producing an improved financial performance.

Fuelled by higher salmon prices, the group’s EBIT (earnings before interest and taxation) was €320m (£273m) against €137m (£117m) a year ago.

For Scotland the operational EBIT per kilo was €1.60 (£1.36) against €1.55 (£1.31) in Q2 2021 on a 6,000 tonne lower harvest of 13,000 tonnes.

There was a dramatically improved performance from Canada, which turned an operational loss last year into a healthy profit. Farming Norway and Farming Ireland also reported higher operating profits.

The global salmon farming group announced a total harvest of 103,000 tonnes, 5,000 tonnes down on a year ago.

The national breakdown is (2021 figures in brackets):

• Norway 60,000 tonnes (56,000 tonnes);
• Chile 14,500 tonnes (15,000 tonnes);
• Scotland 13,000 tonnes (19,000 tonnes);
• Canada 10,500 tonnes (13,500 tonnes);
• Ireland 3,500 tonnes (2,000 tonnes); and
• Faroe Islands 1,500 tonnes (2,500 tonnes).

The operational EBIT per kg (2021 figures in brackets) is Norway €3.95 (€1.65); Scotland €1.6 (€1.55); Chile €1.05 (€1); Canada €3, including €3.85 in Canada West (loss of €0.50); Ireland €2.80 (€2); Faroe Islands €5.8 (€1.9).

Mowi said the operational EBIT for Consumer Products was €18m [£15.26m] (compared with €16m [£13.57m] in Q2 2021) and Feed €2m [£1.70m] in Q2 2022 (€3m [£2.54m] in Q2 2021).

The reported financial net interest-bearing debt (NIBD) was approximately €1.240bn (£1.052bn) at the end of the quarter (excluding IFRS 16 effects).

The complete Q2 2022 report will be released on 24 August.