Mowi (MOWI) Q2 2024 earnings summary

Executive summary

• Operating revenues reached EUR 1.34 billion in Q2 2024, with operational EBIT of EUR 229.5 million, reflecting strong operational performance and record-high harvest volumes of 110.4–110.5 thousand tons, in line with guidance.

• Record high standing biomass in sea at quarter-end of 327,000 tons, up 9.4% year-over-year, and continued strong biological performance into Q3.

• 2024 harvest volume guidance of 500,000 tons reiterated, up 5.3% year-over-year, outpacing industry growth of 1%.

• Realised blended farming cost per kg decreased by EUR 0.21 quarter-over-quarter to EUR 5.84, with further reductions expected.

• Strategic review initiated for Canadian operations due to regulatory changes banning net-pen farming in British Columbia from July 2029.

Financial highlights

• Underlying earnings per share were EUR 0.30; annualized return on capital employed was 15.9%.

• Net interest-bearing debt stood at EUR 1.88 billion, above the long-term target, with an equity ratio of 47.5–48%.

• Dividend of NOK 1.70 per share declared for the quarter.

• Operational EBITDA was EUR 278.7 million, down from EUR 348.0 million in Q2 2023.

• Net income for the period was EUR 37.7 million, compared to a loss of EUR 123.1 million in Q2 2023.

Outlook and guidance

• 2024 harvest volume guidance maintained at a record-high 500,000 tons, with Q3 2024 harvest volume expected at 105,000 tons.

• Further cost reductions anticipated in H2 2024 due to higher harvest volumes and lower feed prices.

• Fundamentals remain strong with limited industry supply growth and anticipated demand recovery in Americas.

• Capital expenditure for 2024 guided at approximately EUR 290 million.

• Quarterly dividend of NOK 1.70 per share payable in Q3.