Sparebank 1 Markets responded positively to the update, particularly highlighting Mowi’s stronger margins in Chile, as well as in Iceland and the Faroe Islands.
“All else being equal, we expect the consensus for earnings estimates to rise slightly after the report, driven by lower than expected farming costs in Chile” , wrote the bank.
Fearnley Securities, focusing on cost management, observed a decrease of €0.15 per kilo from the previous quarter, surpassing Mowi’s initial projections of stable costs.
However, the report noted that harvest volumes fell short of guidance by five percent, largely attributable to Scotland and Canada, regions marked by negative margins. This shortfall, according to Fearnley, had a negligible effect on the company’s operating profit per kilo.
In light of the prolonged cost inflation issues within the industry, Mowi’s update comes as a notable positive shift. Fearnley Securities, however, maintains that this update might have a limited influence on the 2024 consensus estimates.
ABG Sundal Collier interpreted the update as an indicator of a potentially stronger biological situation in Norway, which could positively impact both cost and price performance in 2024. This observation leads the brokerage to foresee a potential rise in the consensus for Mowi’s 2024 operating profits.