Mowi Q3 results hit by Canadian biological issues

Mowi today announced a third quarter global operating profit of around €131m euros with Scotland almost trebling its average per kilo return. The EBIT (operating profit) figure is about €5m down on what analysts had been expecting, largely due to extraordinary biological problems on both Canadian seaboards. Issues with a plankton bloom in Canada West cost the company €6m and it took a €5m hit from problems with low oxygen levels in eastern Canada. The Canadian harvest for the quarter fell by 1,000 tonnes to 11,000 tonnes. Mowi’s total harvest volume was higher than predicted at 117,000 tonnes against 126,000 tonnes in Q3 2020. The Scottish harvest was slightly lower from 16,000 tonnes a year ago to 15,000 tonnes this time. But the operational EBIT per kilo rose from €0.35 last year to €0.90 in Q3 2021. The operational EBIT per kilo from Canada was zero, compared with a loss of €0.55 in Q3 last year. Mowi’s main salmon farming operations are based in Norway and the sector produced 71,000 tonnes (76,500 tonnes in 2020) and an operational EBIT of €1.4 per kilo (Q3 2020: €0.85). Chile is another important country for the company and its salmon farms there produced 15,000 tonnes between July and September, down by 1,500 tonnes on 12 months ago. However, the EBIT per kilo rose from €0.55 to €0.90. Mowi Ireland produced 2,000 tonnes during the quarter (3,000 tonnes) but the EBIT per kilo remains steady at €1.85. Farming Faroes harvested 3,000 tonnes (2,000 tonnes) and had a per kilo EBIT of €0.85 (Q3 2020: €1.30). The operational EBIT in Consumer Products was €22m (Q3 2020: €21m) and feed €10m (Q3 2020: €12m). Mowi’s full Q3 report will be published on 10 November.