Mowi Scotland recovery gathers pace

Mowi Scotland is bouncing back from the troubles which have hit financial performance recently.

Results for the first quarter of this year, published today, show the Scotland division produced an operational EBIT or operational profit of €31.1m (£26.8m) up from €26.6m (£23m) 12 months earlier. This produced an operational EBIT per kilo of €2.19 (£1.89).

The harvest volume also increased from a year ago by just over 2,800 tonnes to 14,205 tonnes.

In its Q1 update, the company said: “The biological situation for Mowi Scotland improved in the first quarter and there was a positive development in operational KPIs vs. the first quarter of 2023. Furthermore, volumes and prices also increased from the comparable quarter (last year).”

The report states: “The overall price achieved was 6% above the reference price in the quarter (Q1 2023:1% below).

Quality was good, with improved superior share versus Q1 2023 and increased weights towards the end of the quarter.

“Contribution from contracts, including contribution from Consumer Products, was positive relative to the reference price in the first quarter (negative in the comparable quarter). The contract share was 73% (Q1 2023: 66%).

“The harvest volume increased to 14,205 tonnes gutted weight (11,373 tonnes) on improved production and more biomass available for harvesting.”

Mowi said the cost of feed for Scotland had increased due to previous inflation and combined with challenging biology in Q4 2023 which led to high cost on inventory.

Other cost items were relatively stable from the comparable quarter. Production, mortality, feed conversion rate and superior share improved from the comparable quarter.

It continued: “Sea lice along with bacterial and viral diseases reduced in the quarter and were lower than in Q1 2023, however AGD (amoebic gill disease) and gill conditions are still considered relatively prevalent.

“The first batch of post smolt is now under production in Loch Etive and will be stocked to marine sites later this year.”

Meanwhile, construction of the new broodstock facility at Ardessie is now underway and is expected to be completed in 2025.

Both the post smolt project and the broodstock facility are important steps to further improve our biological and financial performance, Mowi added.