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Yahoo
15-05-2025
- Business
- Yahoo
Mowi ASA (MHGVY) Q1 2025 Earnings Call Highlights: Record Profits Amidst Industry Challenges
Operational Revenue: EUR1.36 billion for Q1 2025. Operational Profit: EUR240 million for Q1 2025. Harvest Volumes: 108,000 tons, up 12% year-over-year. Farming Costs: EUR5.89 per kg for Q1 2025. Dividend: NOK1.70 per share for Q1 2025. Cash Position: EUR1.88 billion at the end of Q1 2025. Earnings Per Share: EUR0.29 for Q1 2025. Return on Capital Employed: 16% for Q1 2025. Norway Operational Profit: EUR155 million with a margin of EUR3.51 per kg. Scotland Operational Profit: EUR32 million with a margin of EUR1.78 per kg. Chile Operational Profit: EUR12 million with a margin of EUR0.88 per kg. Canada Profit: EUR4 million, improved from a EUR2 million loss in Q1 2024. Consumer Products Operational Profit: EUR33 million, up from EUR24 million in Q1 2024. Feed Volumes: 112,000 tons, up 14% year-over-year. Feed Operational EBITDA: EUR7 million for Q1 2025. Warning! GuruFocus has detected 4 Warning Signs with BOM:543573. Release Date: May 14, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Mowi ASA (MHGVY) reported a record high operational profit of EUR 240 million for Q1 2025. The company achieved an operational revenue of EUR 1.36 billion, with harvest volumes up by 12% year-over-year. Mowi ASA (MHGVY) maintained a strong cash position with EUR 1.88 billion at the end of the quarter. The company announced a quarterly dividend of NOK 1.70 per share. Mowi ASA (MHGVY) expects a further decrease in production costs due to economies of scale and improved biological conditions. Prices in the quarter were lower than expected due to record high industry supply. The company faces potential indirect effects from tariff turmoil in the US, which could impact demand. Mowi ASA (MHGVY) experienced higher costs in some regions, such as Chile, due to high-cost sites. The Norwegian government's White Paper on agriculture suggests more taxes and fees, which could impact the industry. There is uncertainty regarding the long-term impact of tariffs and potential economic slowdowns on demand. Q: You had guided 2% to 3% industry supply growth in February, but now you expect 6%. What has changed? Is there a chance that 2026 supply growth could also be revised up? A: Kristian Ellingsen, CFO: The biological performance and recovery in Norway have been better than expected. The industry is operating at high capacity utilization, and given current regulations, there's limited growth potential beyond this. 2025 is a recovery year from previous modest growth, limiting future potential. Q: Fish meal and fish oil prices have dropped over the last 12 months, but your revenue per kilo in the feed segment has been flat. Why hasn't it decreased with raw materials? A: Kristian Ellingsen, CFO: There was a positive development in 2024, but a pause in momentum in Q1 2025. We expect continued positive effects due to good fundamentals in the fishery season in Peru. Ivan Vindheim, CEO: The feed formula and energy costs also play a role, so it's not purely linear. Q: How significant is the strong biology in the first half of 2025 for costs in the second half for Norway? A: Ivan Vindheim, CEO: Costs are dropping, especially in Norway, which is our largest segment. If this trend continues, it will be beneficial, but it's dependent on biology, which has been exceptionally favorable so far. Q: When do you expect the quarter-on-quarter growth to ease off, and have retail prices started to come down? A: Kristian Ellingsen, CFO: We expect more moderate growth figures in upcoming quarters, but the high biomass will impact 2025. Retail prices haven't seen major declines yet, but we expect this over time. Ivan Vindheim, CEO: Quarter-over-quarter growth should ease by the fourth quarter, with next year looking different due to normalized biology. Q: Global supply growth is up by 8%, but consumption is up by 5%. Will this impact price dynamics going forward? A: Kristian Ellingsen, CFO: This is normal, with consumption slightly higher than supply. The market has absorbed the supply, and there's no significant inventory buildup. Q: Have you planned more retail promotions and campaigns for the second half of the year? A: Ivan Vindheim, CEO: Yes, preparations are ongoing. We expect average consumer prices to come down due to promotions and eventual shelf price reductions. Q: Can you comment on the strong performance in Norway this quarter? Is it due to better vaccines, sea temperatures, or other factors? A: Ivan Vindheim, CEO: The environmental conditions and new winter sore vaccine have been favorable. This year has seen tailwinds from all directions, which is rare, but it has led to strong performance. Q: How have US customers reacted to the tariffs, and what is the short-term demand impact? A: Ivan Vindheim, CEO: We haven't seen an effect yet as shelf prices haven't changed. If tariffs remain at 10%, it's manageable, but higher tariffs could have a more prolonged impact. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Yahoo
15-05-2025
- Business
- Yahoo
Mowi ASA (MHGVY) Q1 2025 Earnings Call Highlights: Record Profits Amidst Industry Challenges
Operational Revenue: EUR1.36 billion for Q1 2025. Operational Profit: EUR240 million for Q1 2025. Harvest Volumes: 108,000 tons, up 12% year-over-year. Farming Costs: EUR5.89 per kg for Q1 2025. Dividend: NOK1.70 per share for Q1 2025. Cash Position: EUR1.88 billion at the end of Q1 2025. Earnings Per Share: EUR0.29 for Q1 2025. Return on Capital Employed: 16% for Q1 2025. Norway Operational Profit: EUR155 million with a margin of EUR3.51 per kg. Scotland Operational Profit: EUR32 million with a margin of EUR1.78 per kg. Chile Operational Profit: EUR12 million with a margin of EUR0.88 per kg. Canada Profit: EUR4 million, improved from a EUR2 million loss in Q1 2024. Consumer Products Operational Profit: EUR33 million, up from EUR24 million in Q1 2024. Feed Volumes: 112,000 tons, up 14% year-over-year. Feed Operational EBITDA: EUR7 million for Q1 2025. Warning! GuruFocus has detected 4 Warning Signs with BOM:543573. Release Date: May 14, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Mowi ASA (MHGVY) reported a record high operational profit of EUR 240 million for Q1 2025. The company achieved an operational revenue of EUR 1.36 billion, with harvest volumes up by 12% year-over-year. Mowi ASA (MHGVY) maintained a strong cash position with EUR 1.88 billion at the end of the quarter. The company announced a quarterly dividend of NOK 1.70 per share. Mowi ASA (MHGVY) expects a further decrease in production costs due to economies of scale and improved biological conditions. Prices in the quarter were lower than expected due to record high industry supply. The company faces potential indirect effects from tariff turmoil in the US, which could impact demand. Mowi ASA (MHGVY) experienced higher costs in some regions, such as Chile, due to high-cost sites. The Norwegian government's White Paper on agriculture suggests more taxes and fees, which could impact the industry. There is uncertainty regarding the long-term impact of tariffs and potential economic slowdowns on demand. Q: You had guided 2% to 3% industry supply growth in February, but now you expect 6%. What has changed? Is there a chance that 2026 supply growth could also be revised up? A: Kristian Ellingsen, CFO: The biological performance and recovery in Norway have been better than expected. The industry is operating at high capacity utilization, and given current regulations, there's limited growth potential beyond this. 2025 is a recovery year from previous modest growth, limiting future potential. Q: Fish meal and fish oil prices have dropped over the last 12 months, but your revenue per kilo in the feed segment has been flat. Why hasn't it decreased with raw materials? A: Kristian Ellingsen, CFO: There was a positive development in 2024, but a pause in momentum in Q1 2025. We expect continued positive effects due to good fundamentals in the fishery season in Peru. Ivan Vindheim, CEO: The feed formula and energy costs also play a role, so it's not purely linear. Q: How significant is the strong biology in the first half of 2025 for costs in the second half for Norway? A: Ivan Vindheim, CEO: Costs are dropping, especially in Norway, which is our largest segment. If this trend continues, it will be beneficial, but it's dependent on biology, which has been exceptionally favorable so far. Q: When do you expect the quarter-on-quarter growth to ease off, and have retail prices started to come down? A: Kristian Ellingsen, CFO: We expect more moderate growth figures in upcoming quarters, but the high biomass will impact 2025. Retail prices haven't seen major declines yet, but we expect this over time. Ivan Vindheim, CEO: Quarter-over-quarter growth should ease by the fourth quarter, with next year looking different due to normalized biology. Q: Global supply growth is up by 8%, but consumption is up by 5%. Will this impact price dynamics going forward? A: Kristian Ellingsen, CFO: This is normal, with consumption slightly higher than supply. The market has absorbed the supply, and there's no significant inventory buildup. Q: Have you planned more retail promotions and campaigns for the second half of the year? A: Ivan Vindheim, CEO: Yes, preparations are ongoing. We expect average consumer prices to come down due to promotions and eventual shelf price reductions. Q: Can you comment on the strong performance in Norway this quarter? Is it due to better vaccines, sea temperatures, or other factors? A: Ivan Vindheim, CEO: The environmental conditions and new winter sore vaccine have been favorable. This year has seen tailwinds from all directions, which is rare, but it has led to strong performance. Q: How have US customers reacted to the tariffs, and what is the short-term demand impact? A: Ivan Vindheim, CEO: We haven't seen an effect yet as shelf prices haven't changed. If tariffs remain at 10%, it's manageable, but higher tariffs could have a more prolonged impact. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
02-04-2025
- Business
- Yahoo
SMA Solar Technology AG (SMTGF) Q4 2024 Earnings Call Highlights: Navigating Challenges with ...
Group Sales: EUR1.5 billion in 2024, down from EUR1.19 billion in 2023. Group EBITDA: Minus EUR16 million in 2024, compared to EUR311 million in 2023. Free Cash Flow: Minus EUR184 million in 2024, improved from minus EUR220 million at the end of Q3 2024. Total Order Backlog: EUR1.36 billion at the end of 2024. Home Segment Revenue: EUR170 million in 2024, down 71% from EUR580 million in 2023. Commercial & Industrial (C&I) Revenue: EUR184 million in 2024, down from EUR479 million in 2023. Large Scale Revenue: EUR1.18 billion in 2024, up from EUR845 million in 2023. EBITDA Margin: Minus 1% in 2024, compared to 16% in 2023. Net Cash: EUR84 million at the end of 2024, down from EUR283 million in 2023. Gross Cash Flow: EUR111 million in 2024, down from EUR333 million in 2023. Net Working Capital: EUR473 million at the end of 2024, up from EUR392 million in 2023. Shareholders' Equity: Decreased to EUR553 million from EUR686 million in 2023. Provisions: Increased to EUR233 million from EUR201 million in 2023. Warning! GuruFocus has detected 4 Warning Signs with SMTGF. Release Date: March 27, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. SMA Solar Technology AG (SMTGF) reported strong performance in the large-scale segment, with revenues increasing from EUR845 million in 2023 to EUR1.18 billion in 2024. The company's order backlog reached EUR1.36 billion at the end of 2024, indicating strong future demand. The Americas region saw a significant increase in revenue share from 25% to 40%, driven by the large-scale segment. SMA Solar Technology AG (SMTGF) is implementing a restructuring and transformation program aimed at improving long-term cost efficiency and reducing liquidity requirements. The company is focusing on cybersecurity, sustainability, and energy system stability, positioning itself as a leader in advanced inverter and battery technology. Group EBITDA fell to minus EUR16 million in 2024 from EUR311 million in 2023, primarily due to low sales and increased costs. The Home and Commercial & Industrial (C&I) solutions segments experienced significant revenue declines, with the home segment decreasing by 71% from EUR580 million in 2023 to EUR170 million in 2024. Free cash flow was negative at minus EUR184 million, impacted by increased net working capital and reduced sales in Home and C&I segments. The company recorded impairments on inventories and capitalized development projects, contributing to the negative financial performance. SMA Solar Technology AG (SMTGF) plans to reduce its workforce by approximately 1,100 full-time equivalents as part of its restructuring efforts. Q: Your guidance is EUR1.5-1.65 billion, but your backlog is EUR1 billion. How do you expect to fill the gap, especially with the market still weak? A: Jurgen Reinert, CEO: We are seeing a slow recovery in the Home and Business Solutions segment as distributor stocks deplete. We expect a slight improvement in order intake throughout the year. For large-scale, we are confident in maintaining market share despite some market reluctance, particularly in the US. Q: What is the break-even level for the Home and C&I business after restructuring? A: Barbara Gregor, CFO: It's too early to provide a specific break-even level as we are still aligning personnel and costs within divisions. We expect to have a clearer picture in the second half of the financial year. Q: Can you comment on the competitive environment in large-scale and any changes? A: Olaf Heyden, COO: The competitive landscape remains largely unchanged with key players like Sangro, Power Electronics, and us. Tesla has become a notable competitor in storage solutions. Q: How do you perceive the current situation in the US market, and what are your plans for accessing it? A: Olaf Heyden, COO: We see some reluctance in large-scale orders but have 90% of our planned revenues for this year already secured. We are localizing transformer production with a partner to meet local content requirements and are monitoring upcoming regulatory announcements. Q: What is driving the slight comeback in demand for residential and C&I markets? A: Olaf Heyden, COO: The main driver is the depletion of distributor stocks. Additionally, the cost of systems has decreased significantly, making them more attractive despite stable electricity prices and high interest rates. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
