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Good results in a biologically challenging quarter for Mowi in Norway

Mowi ASA
Mowi ASA

(Bergen, 8 May 2024) Mowi recorded revenues of 1.33 billion euros in the first quarter, compared with 1.36 billion euros in the corresponding quarter of 2023. Operational profit was 201 million euros in the quarter.

“The first quarter was challenging for Mowi in Norway due to winter sores and an unusually high prevalence of string jellyfish, in addition to a very cold winter. Consequently, I am pleased to see the situation in Norway has improved considerably in the second quarter. We are now vaccinating our smolt with an improved winter sore vaccine which has shown promising results so far, and we believe that this, together with other measures we are taking, will lead to a significantly improved situation next year,” said Mowi CEO Ivan Vindheim.

Outside Norway, Mowi delivered strong biological performance in its six other farming countries during the quarter.

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“It is comforting to see biological improvements in Scotland compared with last year, and that our Chilean operation has coped well during the El Niño period. Mowi’s other farming regions abroad have also achieved good biological results in the quarter,” Vindheim said.

As a result of improved biology, falling feed prices and scale effects, Mowi expects reduced production costs in the second half of the year.

Mowi harvested 96 500 tonnes of salmon in the first quarter, leaving a seasonally record-high biomass in sea at quarter end. This, combined with improved biological performance in Mowi Norway so far in the second quarter, means that group volume guidance of record-high 500,000 tonnes for 2024 is re-iterated, marking a new milestone in Mowi’s 60-year history Furthermore, this would correspond to an increase of 5.3% from last year, yet again significantly higher than the expected growth in the wider industry.

Since 2021 Mowi has focused heavily on releasing larger smolt to sea. CEO Ivan Vindheim is certain that this strategy will lead to further growth and improved biological KPIs in the coming years.

“By the end of 2024 Mowi will have capacity to produce almost 40 million postsmolt, equivalent to a share of approximately 25% of the group’s total smolt. In Norway, Mowi’s postsmolt share will be approximately 50%, when excluding Region North from the equation for natural reasons. This is expected to drive license utilisation higher and at the same time contribute to improved fish welfare and survival rates,” said Vindheim.

Mowi Consumer Products, the group’s secondary processing business, delivered good operational performance in the first quarter, and increased sold volumes year-on-year on strong European retail demand.

“European salmon prices have been strong so far this year, however, prices for American salmon have been weaker. We believe American salmon prices will strengthen over time as we see practically no supply growth this year and limited supply growth in the coming years,” said Vindheim

Mowi Feed also had a good quarter, setting a new record for volumes sold in what is expected to be another year of all-time high volumes and earnings for the group’s feed operation following record-high harvest volumes for Mowi Farming.

Mowi’s Board has decided to pay a quarterly dividend of NOK 1.50 per share.

For further information, please contact: 
Kristian Ellingsen, CFO, +47 905 14 275
Kim Galtung Døsvig, IR Officer & Head of Treasury, +47 908 76 339 
Ola Helge Hjetland, Group Communications Director, +47 970 67 932

About Mowi ASA
Mowi is one of the world's leading seafood companies and the largest producer of farm-raised Atlantic salmon in the world, with an estimated harvest for 2024 of 500 000 tonnes from seven farming countries including Norway, Scotland, Ireland, Faroes, Iceland, Canada and Chile.

Mowi is a fully integrated global seafood company, bringing salmon and other seafood of supreme quality to consumers around the world, partly under its own MOWI brand. Mowi is ranked as the most sustainable listed animal protein producer in the world by Coller FAIRR.

With headquarters in Bergen, Norway, Mowi employs 11 500 people in 25 countries worldwide, and is listed on the Oslo Stock Exchange. Turnover was EUR 5.5 billion in 2023.

For more information, please visit www.mowi.com.

Forward looking statements 
This release may be deemed to include forward-looking statements, such as statements that relate to Mowi's goals and strategies, salmon prices, ability to increase or vary harvest volume, production capacity, trends in the seafood industry, restructuring initiatives, exchange rate and interest rate fluctuations, expected research and development expenditures, business prospects and positioning with respect to market, demographic and pricing trends, strategic initiatives, and the effects of any extraordinary events and various other matters (including developments with respect to laws, regulations and governmental policies regulating the industry and changes in accounting policies, standards and interpretations) on Mowi's business and results. Forward-looking statements are typically identified by words or phrases, such as "believe," "expect," "anticipate," "intend," "estimate," "may increase," "may fluctuate," "plan," "goal," "target," "strategy," and similar expressions or future or conditional verbs such as "may," "will," "should," "would," and "could." Forward-looking statements are Mowi's current estimates or expectations of future events or future results. Actual results could differ materially from those indicated by these statements because the realization of those results is subject to many risks and uncertainties. Mowi ASA's Annual Report contains additional information about factors that could affect actual results, including: changes to the price of salmon including the value of our biological assets; hedging risks; risks related to fish feed; economic and market risks; environmental risks; operational risks; risks related to escapes, disease and sea lice; product risks; risks related to our acquisitions; financing risks; regulation risks including relating to food safety, the aquaculture industry, processing, competition, anti-trust and anti-corruption; trade restriction risks; litigation risks; tax and accounting risks; strategic and competitive risks; and reputation risks. All forward-looking statements included in this release are based on information available at the time of the release, and Mowi assumes no obligation to update any forward-looking statement.

This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.

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