More than €1 000 million of net operating income for Mowi in 2022

Mowi farmer in Beiteitnes sea site, Norway Region West. Photo: Mowi.
Mowi farmer in Beiteitnes sea site, Norway Region West. Photo: Mowi.

Mowi presented this morning its Q4 2022 trading update in which it revealed that its net operating income last year was more than € 1 000 million. Specifically, the full-year operational EBIT of the multinational company was approximately € 1,005 million in 2022. The harvest volume for the full year was 464,000 tonnes of gutted weight equivalents (GWE).

Norway, the best-performing country

EBIT (Earnings Before Interest and Taxes) measures a company's operating profit, the net income excluding the effect of debt interest and taxes. In the case of Mowi for the year 2022, the total operating EBIT per kg along the value chain was approximately as follows:

  • Norway € 2.30
  • Scotland € 0.70
  • Chile € 1.10
  • Canada € 1.50 (Canada West € 2.15)
  • Faroe Islands € 1.75

Therefore, Norway and Western Canada were the best-performing operations, followed by the Faroe Islands, Canada (if we do not differentiate by coast), Chile, and finally Scotland. The company does not include in this list its Irish operation, which has been adversely affected by very low volumes and difficult biology.

Q4 2022 results

Mowi ASA had announced a total harvest volume of 127 thousand tonnes for the Q4 of 2022, but the final results exceeded expectations, reaching a total of 130.5 thousand tonnes GWE, which was split as follows:

  • Farming Norway 87.0 thousand tonnes
  • Farming Scotland 10.5 thousand tonnes
  • Farming Chile 18.5 thousand tonnes
  • Farming Canada 11.0 thousand tonnes
  • Farming Ireland 0.5 thousand tonnes
  • Farming Faroe Islands 3.0 thousand tonnes

In the Q4 of 2022, the group's operating EBIT was approximately €239 million compared with €146 million in the same period in 2021. Operating EBIT in Consumer Products was €42 million (€26 million in Q4 2021) and €17 million in Animal Feed (€8 million in Q4 2021). The company also noted that, after the problems recorded, the operating EBIT of the Irish salmon value chain was € -5 million.

Arctic Fish's acquisition

Finally, although the company has already announced that the full report for Q4 2022 will be published on February 15, Mowi has also brought forward the results of its financial net interest-bearing debt (NIBD). The reported NIBD for the group was approximately € 1 760 million at the end of the quarter (excluding IFRS 16 effects).

Of this, approximately € 70 million is due to the acquisition of Arctic Fish, which the company completed last December. The financial position of the Icelandic company is consolidated with effect from the fourth quarter (December 29, 2022). The income statement will be incorporated as of the first quarter of 2023.

Mowi's NIBD excluding the acquisition of Arctic Fish is € 1 510 million. The working capital tie-up was approximately € 225 million in the quarter, mainly related to temporary items including inventory and accounts receivable in sales and marketing.

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