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Operational EBIT of EUR 80 million in the third quarter for Mowi
(Bergen, 4 November 2020) Mowi achieved an operational EBIT of EUR 80 million in the third quarter of 2020, compared with EUR 148 million in the corresponding quarter of 2019.
Mowi’s results in the third quarter were largely impacted by Covid-19 restrictions and seasonal high volumes.
“Our operations have been running close to normal despite further Covid-19 restrictions in the quarter. However, the pandemic still impacts out of home consumption to a large degree, and although retail sales are strong, our earnings are impacted by falling prices as a result of lower net demand,” says Mowi CEO, Ivan Vindheim.
Mowi reported operational revenues of EUR 958 million (EUR 1 023 million) in the third quarter of 2020. Total harvest volume in the quarter of 125 773 tonnes (116 989) was approximately in line with guidance. Full-year harvest guidance for 2020 is unchanged at 442 000 tonnes. Harvest guidance for 2021 is 445 000 tonnes.
“I am very pleased that both Farming, Feed and Consumer Products delivered all-time high quarterly volumes. Mowi’s integrated value chain has yet again demonstrated its strength during these unprecedented times. It is also encouraging to see that farming production cost has improved,” says Vindheim.
Mowi’s farming volumes have over the past few years been subject to significant growth. However, over time the company has been lagging somewhat behind the industry’s farming volume growth trajectory. Accordingly, Mowi will put even more focus on growing farming volumes going forward. Further to this, Mowi will arrange a Capital Markets Day on 17 March 2021 where this will be addressed in detail.
“Global supply growth in 2021 is expected to be 1% and would under normal circumstances be very supportive of strong salmon prices. Whilst Covid-19 has significantly impacted the salmon market and prices in the short-term, we still strongly believe in the positive long-term outlook for the industry, and for Mowi in particular,” says Vindheim.
Distributing dividends to its shareholders is an essential part of Mowi’s financial strategy. At the same time the Board considers it of utmost importance to preserve cash and maintain a strong financial position, particularly in light of the ongoing Covid-19 pandemic. Hence, under the prevailing circumstances the Board has not found it appropriate to distribute a quarterly dividend for the third quarter.
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 the world’s leading seafood company and the largest producer of farm-raised salmon in the world. As the first global seafood company with an end-to-end supply chain, Mowi brings supreme quality salmon and other seafood to consumers around the world.
With headquarters in Bergen, Norway, Mowi employs about 15 000 people in 25 countries worldwide, and is listed on the Oslo Stock Exchange.
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 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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