Mowi Scotland reports strong Q2 and better biology

Mowi Scotland produced another strong quarter between April and June this year, with news that some of the issues that have dogged the business in the recent past are now becoming less of a problem. The division produced revenues of 43.6m euros (£37m) against €41.8m (£35.7m) a year ago. Globally, Mowi generated €1.34bn (£1.14 bn) which translated into a profit of €230m (£196.5m). CEO Ivan Vindheim told investors today: “Mowi harvested a record 110,000 tonnes of salmon in the second quarter. At the same time our biomass in sea was at an all-time high level at the end of the quarter, and up by 9.4% from last year. “This is impressive and shows that Mowi is well on track to deliver on our volume guidance of a milestone 500,000 tonnes this year. As recently as 2018 Mowi harvested 375,000 tonnes of salmon.” The Mowi Scotland operational EBIT or operational profit during the quarter was up by almost two million euros to €43.6m (£37m). The overall price achieved in Scotland was 4% above the reference price in the quarter; the quality was good, with stable superior share against Q2 2023 and increased harvest weights. The Scotland report continued: “Contribution from contracts, including contribution from Consumer Products, was positive relative to the reference price in the second quarter (positive also in the comparable quarter). “The contract share was 50%. Harvest volume increased to 19,591 tonnes gutted weight (18,278 tonnes in Q2 2023), in line with guidance on improved production.” Mowi said feed cost decreased somewhat from the comparable quarter on the back of the downward trend. Other seawater cost items were relatively stable from the comparable quarter, as additional costs related to freshwater well boat capacity were offset by savings in other health-related costs. However, non-seawater costs increased somewhat with production, mortality, feed conversion rate and harvest weights all improved from the comparable quarter. [caption id="attachment_84812" align="alignnone" width="400"] Mowi's CEO Ivan Vindheim[/caption] On biological challenges in Scotland Mowi said: “Seawater temperatures have been lower than in Q2 2023 by up to 1.5 degrees. Consequently, the seasonal challenges associated with algae and jelly fish have been lower. “AGD (amoebic gill disease) remains relatively high, but higher treatment capacity is available to Mowi Scotland, due to the challenging presence of this gill condition in recent years. “The production of post-smolt in Loch Etive has been good and transfer to ordinary sea sites is scheduled for the fourth quarter. “ Mowi added: “Furthermore, construction of the new broodstock facility at Ardessie has commenced 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. Costs are expected to increase in the third quarter on lower volumes.” Mowi Ireland also turned in an improved performance during the period with the operational EBIT trebling to €7.3m (£6.2m). Mowi has decided to pay a dividend of NOK 1.70 per share.