Higher Q4 harvest, but lower EBIT at Mowi Scotland

MOWI is forecasting a 2,000-tonne harvest increase from its Scottish operations for the final quarter of 2019.

The world’s largest salmon farming company says Scotland will have produced 14,000 tonnes over the period compared to earlier predictions of 10,600 tonnes, and 12,000 tonnes in Q4 2018.

However, operating profits from Scotland are lower than 2018, with an EBIT of €1.30 per kilogramme against €2.30 in 2018.

The total group Q4 harvest is 10,000 tonnes higher at 116,000 tonnes, with Norway accounting for 66,000 tonnes of that figure, up by 7,000 tonnes on the previous period.

Canada’s harvest is also higher at 16,000 tonnes, up from 12,000 tonnes, but Chile, where there was political unrest last year, is slightly down at 16,500 tonnes.

Mowi’s Irish harvest is also down, from 1,500 tonnes to around 1,000 tonnes, and its Faroe Islands volume is also lower, at 2,500 tonnes.

The Mowi group will also be announcing a lower than expected final quarter EBIT, or operating profit, of €165 million, down from €213 million in Q4 2018, with higher production costs taking their toll.

Norway’s operational EBIT per kg was €2.10, Chile €0.80, while Canadian operations made a loss of €0.55 per kg.

Ireland, where Mowi has relatively modest operations, produced the highest EBIT at €3.30 per kg. The figure for the Faroe Islands is €1.65 per kg.

The group will publish its full fourth quarter report, with more detail on why profits were down, on February 12.