In This Article:
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Operating Revenue: EUR 1.44 billion in Q3.
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Operating Profit: EUR 173 million in Q3.
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Harvest Volumes: 161,000 tons in Q3.
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Realized Farming Cost: EUR 5.72 per kilo in Q3.
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Dividend: Quarterly dividend of 1.50 NOK per share.
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Cash Flow: EUR 1.77 billion in Q3.
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Equity Ratio: 48% at the end of Q3.
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Earnings Per Share: 21 Eurocents in Q3.
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Return on Capital Employed: 13% in Q3.
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Farming Europe Margin: Leading margin performance in Q3.
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Price Achievement: 14% above reference price in Q3.
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Norway Operation Profit: EUR 146 million in Q3.
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Scotland Operation Profit: EUR 30 million in Q3.
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Chile Operation Profit: EUR 14 million in Q3.
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Consumer Products Profit: EUR 44 million in Q3.
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Feed Operation EBITA: EUR 25 million in Q3.
Release Date: November 06, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Mowi ASA (MHGVY) achieved record high operating revenues of EUR1.44 billion in the third quarter, driven by all-time high quarterly harvest volumes of 161,000 tons.
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The company expects to harvest 520,000 tons next year, marking a significant step towards their 2029 milestone of 600,000 tons, indicating strong growth prospects.
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Mowi ASA (MHGVY) has consistently outperformed the industry in volume growth, with a 4.8% growth rate compared to the industry's 2.7% over recent years.
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The company reported a strong balance sheet with a healthy equity ratio of 48% at the end of the quarter.
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Mowi ASA (MHGVY) declared a quarterly dividend of 1.50 NOK per share, reflecting confidence in their financial stability and future prospects.
Negative Points
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Prices in the third quarter were relatively soft due to seasonal high industry supply, impacting overall profitability.
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The company's realized blended farming costs were higher than expected at EUR5.72 per kilo, influenced by seasonal issues and record high sea temperatures.
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Soft prices in the Americas and biological challenges in regions like British Columbia negatively impacted profits in those areas.
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The weakening of the Norwegian Kroner resulted in an FX hit, costing Mowi ASA (MHGVY) EUR18 million in the third quarter.
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There is uncertainty regarding future biological challenges, such as string jellyfish and winter wounds, which could impact future production and quality.
Q & A Highlights
Q: What are your expectations regarding downgrades or superior share for the coming winter due to string jellyfish and winter wounds? A: Ivan Vindheim, CEO: It's uncertain, and no one knows for sure. So far, there have been a few cases, but nothing significant. The situation is being monitored, but future developments are unpredictable.