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Yet another record-breaking quarter for Mowi, overshadowed by infamous tax proposal

Mowi ASA
Mowi ASA

(Bergen, 9 November 2022) Mowi recorded record-high revenues of 1 257 million euros in the third quarter of 2022. Operational profit was 240 million euros, compared with 131 million euros in the corresponding quarter of 2021.

Despite another set of new operational and financial records for Mowi, the third quarter was unfortunately overshadowed by the Norwegian government’s proposed resource rent tax of 40% on salmon farming, or 62% including corporate tax.

“The aquaculture industry is of great importance for the future of Norway, and it is in the nation’s best interests to see it grow. However, a tax rate of 62% will put an end to most of the many significant investment plans along the Norwegian coast, leading not only to reduced local employment levels now and in the future, but also to a massive diversion of funds away from coastal communities,” Mowi CEO Ivan Vindheim said.

Until agreement has been reached on a more viable framework for the industry, Mowi has been forced to put all new structural investments in Mowi Norway on hold.

“Mowi is a global company and salmon farming is not bound by geography – it can take place in sea and on land anywhere in the world, close to its major markets. If the proposal for 62% tax is approved by parliament, Norway stands to lose its leading position within aquaculture to other countries,” Vindheim said.

Mowi reported operational EBIT of EUR 240 million in the third quarter of 2022, which is the company’s third best quarter ever up from EUR 131 million reported in the corresponding quarter in 2021. Operational revenues in the quarter were all-time high at EUR 1 257 million (EUR 1 035 million). Total harvest volume in the quarter was 133 808 tonnes gutted weight (117 115 tonnes), slightly above guidance of 131 000 tonnes. Full-year harvest guidance for 2022 is unchanged at 460 000 tonnes. Next year, Mowi expects to harvest 470 000 tonnes.

Results within Mowi Farming were good in the quarter due not only to strong prices and record-high volumes, but also relatively stable farming costs compared with the previous quarter.

“I am pleased that our farming operations experienced good growth performance in sea with improved production and feed conversion ratio, clear evidence that the organisation continues to deliver good biological results. Mowi’s relentless focus on farming volume growth, cost leadership and superior sustainability credentials continues unabated,” Vindheim said.

Consumer Products delivered record-high operational profit of 30 million euros on solid operational performance across Mowi’s processing plants in Europe, Americas and Asia.

“Salmon normally fares well in challenging economic times and overall retail demand has so far continued to develop favourably. We expect the retail channel to continue to grow in the years ahead supported by unlocking the value potential in salmon as a value-added product,” Vindheim said.

Mowi has recently entered into an agreement to acquire a majority stake in Arctic Fish. The company is a leading salmon farmer in Iceland, situated in the West Fjords where conditions are favourable for salmon farming.

“The acquisition follows our strategy to grow farming volumes and completes our geographical farming footprint. Icelandic salmon volumes are expected to grow significantly in the years to come, and Arctic Fish is well positioned to take part in this growth journey,” Vindheim said.

Mowi’s Board has decided to pay a quarterly dividend of NOK 1.70 per share, supported by a strong financial position and a favourable outlook.

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 salmon in the world with 466,000 GWT harvested in 2021 in six farming countries including Norway, Scotland, Ireland, Faroes, Canada and Chile.

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, partly under our own MOWI brand. Mowi is ranked as the most sustainable 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 4.2 billion in 2021.

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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