Mowi ASA (MHGVY) Q2 2024 Earnings Call Highlights: Strong Financial Performance Amidst Industry ...

In This Article:

  • Operating Revenue: EUR1.34 billion in Q2 2024.

  • Operating Profit: EUR230 million in Q2 2024.

  • Harvest Volumes: 110,500 tonnes in Q2 2024.

  • Standing Biomass: 327,000 tonnes at the end of Q2 2024, up 9.4% year-over-year.

  • Net Interest-Bearing Debt: EUR1.88 billion.

  • Equity Ratio: 48% at the end of Q2 2024.

  • Underlying Earnings Per Share: EUR0.30 in Q2 2024.

  • Return on Capital Employed: 16% annualized.

  • Farming Volume Guidance: 500,000 tonnes for the year 2024.

  • Operational Profit - Mowi Norway: EUR149 million in Q2 2024.

  • Operational Profit - Mowi Scotland: EUR44 million in Q2 2024.

  • Operational Profit - Mowi Chile: EUR12.5 million in Q2 2024.

  • Operational Profit - Mowi Canada: EUR7 million in Q2 2024.

  • Operational Profit - Mowi Ireland: EUR7 million in Q2 2024.

  • Operational Profit - Mowi Faroes: EUR10.5 million in Q2 2024.

  • Operational Profit - Arctic Fish: EUR1.2 million in Q2 2024.

  • Consumer Products Operating Profit: EUR25 million in Q2 2024.

  • Mowi Feed Operational EBITDA: EUR11 million in Q2 2024.

Release Date: August 21, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Mowi ASA (MHGVY) recorded EUR1.34 billion in operating revenues and an operating profit of EUR230 million for the second quarter of 2024, indicating a strong financial performance.

  • The company achieved seasonally record-high harvest volumes of 110,500 tonnes, aligning with their guidance and demonstrating operational efficiency.

  • Mowi ASA (MHGVY) reported a decrease in realized blended farming costs, with expectations for further reductions due to higher harvest volumes and lower feed prices.

  • The company is on track to achieve a milestone farming volume of 500,000 tonnes for the year, marking a significant growth of 5.3% year over year.

  • Mowi ASA (MHGVY) has implemented successful cost-saving initiatives, realizing EUR22 million in annualized cost savings so far in 2024, well ahead of their target.

Negative Points

  • The Canadian government's decision to ban net-pen salmon farming in British Columbia by 2029 poses a significant challenge, as this region has been a part of Mowi's operations.

  • Mowi ASA (MHGVY) experienced lower price realization in the Americas due to the cost-of-living crisis, impacting salmon consumption and pricing.

  • The company's net interest-bearing debt stood at EUR1.88 billion, exceeding their long-term debt target of EUR1.7 billion.

  • Mowi ASA (MHGVY) faced challenges with soft prices and margins in the Americas, particularly affecting their operations in Chile and Canada.

  • The company reported a decrease in operational profit for Mowi Norway due to lower price achievement, despite good biological performance.