Mowi (MOWI) Q3 2024 earnings summary

Executive summary

• Achieved record-high Q3 2024 revenues of €1.44 billion, up 6% year-over-year, driven by all-time high harvest volumes of 161,020 tons, a 5.3% increase.

• Operational profit reached €173 million, but declined year-over-year due to lower prices amid high industry supply and temporary US demand weakness.

• Maintained 2024 harvest volume guidance at 500,000 tons and raised 2025 guidance to 520,000 tons, targeting 600,000 tons by 2029.

• Consumer Products and Feed segments delivered record profits and volumes.

• Quarterly dividend of NOK 1.50 per share declared.

Financial highlights

• Operational EBIT was €173 million (down from €203.1 million YoY), with EBIT margin at 12.0%.

• Net interest-bearing debt decreased to €1.77 billion, nearing the long-term target of €1.7 billion.

• Equity ratio stood at 47.5% at quarter-end.

• Underlying EPS was €0.21, down from €0.26 YoY; annualized ROCE at 12.6%.

• Cash flow from operations reached €310 million, supported by a €99 million working capital release.

Outlook and guidance

• 2024 volume guidance maintained at 500,000 tons; 2025 guidance raised to 520,000 tons, targeting 600,000 tons by 2029.

• Expect a tighter market balance and positive price triggers in the coming months due to lower supply and seasonal demand.

• Industry supply growth for 2025 estimated at around 2%, with risk on the downside.

• Realised blended farming cost in Q4 expected to be on par with or lower than Q3, supported by lower feed prices.

• Targeting annual revenue growth of 7-8% over the next five years.