Operating profit doubles for Mowi Scotland despite biological challenges

by
Editorial Staff

Persistent biological challenges, including elevated seawater temperatures, lead to reduced harvest voumes for Mowi.

The UK’s largest salmon producer Mowi Scotland, has more than doubled its operating profit for the third quarter.

Operational EBIT for Q3 2023 reached €9.2 million, marking a substantial increase from the €4.2 million reported in Q3 2022, reflecting a year-on-year growth of 119%, according to results published my Mowi earlier this week.

The harvest volume (GWT) for Q3 2023 recorded 14,730 metric tons, showing a slight increase from the 14,494 tons reported for the corresponding quarter in 2022, indicating a 2% rise.

Operational EBIT per kg (EUR) also demonstrated remarkable progress, reaching 0.63 in Q3 2023, compared to 0.29 in Q3 2022. This represents a substantial year-on-year increase of 117.2%.

However, Mowi Scotland faced certain biological challenges in the third quarter, largely attributed to record-high seawater temperatures resulting from El Niño and associated water quality issues. These factors contributed to a challenging operating environment.

Looking ahead, the company anticipates continued high biological costs in the fourth quarter, particularly following a demanding October. As a result of these challenges, Mowi Scotland has revised its harvest volume guidance for 2023, reducing it from 64,000 GWT to 62,000 GWT.

Notably, harvest volumes in Scotland for Q3 2023 experienced a 9% decline compared to the same quarter in the previous year, falling below the initial guidance.

Despite these challenges, the total value spent on salmon in key retail markets, including Germany, the UK, Italy, and Spain, exhibited positive growth. Estimates indicate a substantial 12% increase in total value spent, primarily driven by higher volumes.

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