Volume growth strategy continues to pay off for Mowi
Photo: Mowi.
Mowi yesterday presented its Q2 2025 trading update, in which, along with an improvement in costs, it targeted a total production of 133,000 gutted weight tons (GWT). The figure is 3,000 tons higher than the forecast the company had provided in the presentation of its Q1 2025 report, when, following the good results obtained in the first quarter, it targeted a total harvest volume of 130,000 GWT.
Thus, where the world's largest supplier of farmed salmon was expected to harvest 20,000 tons more - 18.18% up - than in the same quarter last year, it has finally achieved 23,000 tons more, a percentage increase of 20.90% over Q2 2024.
As the company announced at its September 2024 Capital Markets Day, from harvest to value-added business, volume growth along the entire value chain is one of its strategic pillars in the period between last year and 2029. For its farming division, in particular, Mowi spoke of continued volume growth of 20%, from 500,000 tons to 600,000 tons.
The Norwegian salmon giant already took a step forward in that strategy in Q1 2025, when it harvested 108,000 tonnes, representing year-on-year growth of 12%. The company thus maintained its 2025 harvest volume forecast at 530,000 tonnes, equivalent to 6% annual growth, and, although yesterday's trading update does not confirm this latest forecast, the fact that it exceeded guidance leads to the belief that the company remains on that path.
With 72,500 tons, Farming Norway was the largest contributor to the total volume of 133,000 GWT. It was followed by Farming Scotland with 24,000 tons, Farming Chile with 15,500 tons, Farming Canada with 9,500 tons, Farming Ireland with 5,000 tons, and Farming Faroes with 4,500 tons. Farming Iceland - i.e., Arctic Fish, the Mowi-owned salmon farming company in the Icelandic Westfjords - was the lowest contributor with only 2,000 tons.
Due to these "very low harvest volumes," the salmon company's Icelandic operation was the worst performer in terms of total operational EBIT per kg in Q2 along the value chain, EUR 2.20, compared to EUR 1.90 in Norway, EUR 1.30 in Scotland, EUR 1.15 in Chile, EUR 0.25 in Canada, EUR 0.20 in Ireland, and EUR 0.90 in the Faroe Islands.
According to the trading update released to the stock exchange, thanks to a strong cost performance, operational EBIT for the Group in Q2 2025 was approximately EUR 189 million (NOK 2,206 million / EUR-NOK 11.67). Mowi added that blended farming cost was EUR 5.39 per kg in the quarter, down from EUR 5.84 in Q2 2024 and EUR 5.89 in Q1 2025.
The company also reported that operational EBIT in the Consumer Products division was EUR 52 million. Although we will have to wait for the presentation of the complete report on August 20, the figure provided in the trading update is more than double last year's figure for the same quarter, when it reported EUR 25.1 million.
Finally, the salmon company said that the operational EBITDA in Feed in Q2 2025 was EUR 14 million. While awaiting the final results, it seems that Mowi Feed continues the trend of Q1 2025 - it started the year with record earnings and sales volumes for a first quarter - since, as in Consumer Products, if the figure is confirmed, this division would also be more than doubling its year-on-year result.
The development of Mowi Feed is particularly important as, in March, the company announced that it had initiated a strategic review of the division. "The time is ripe to assess how our Feed division will be organised in the future," Mowi CEO Ivan Vindheim said then, announcing a strategic review to assess "all available options, including a sale."
