Latest news with #IvanVindheim
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
14-05-2025
- Business
- Yahoo
Another strong operational quarter for Mowi
(Bergen, 14 May 2025) Mowi generated operating revenues of EUR 1.36 billion in the first quarter which translated into an operational profit of EUR 214 million. The first quarter of 2025 brought increased revenues and results for Mowi compared with the same quarter last year, on strong biological and operational performance, along with improved volumes and cost. 'So far, 2025 has been a very good year operationally and biologically which has resulted in high harvest volumes combined with seasonally record-high biomass in sea,' said Mowi CEO, Ivan Vindheim. Volume growth across the value chain is one of Mowi's strategic pillars. The company harvested 108,000 tonnes in the quarter representing growth of 12% compared with last year. Mowi is maintaining its harvest volume guidance for 2025 of 530,000 tonnes, equivalent to annual growth of 6%. This is supported by seasonally record-high biomass in sea with 11% growth year-on-year. Taking into consideration the recent agreement to increase its ownership of Nova Sea from 49% to 95%, Mowi expects to harvest 600,000 tonnes next year. 'Seawater production went very well in the first quarter, with improved growth, survival rates, feed conversion ratio and superior share,' Vindheim said. As recently as 2018, Mowi's harvest volumes were 375,000 tonnes, hence the company will have grown its farming volumes by 155,000 tonnes by the end of 2025, which is equivalent to a CAGR of 5.1% versus a projected CAGR for the industry of 3.3%. This comprises mainly organic growth, and Mowi still has further organic growth initiatives that are expected to contribute to additional volume growth. Mowi Consumer Products, the group's value-added business, had yet another strong quarter on good operational performance and high volumes. 'Demand for salmon was good in the quarter and downstream earnings improved in Europe, Americas and Asia. At the same time, however, high supply growth put pressure on market prices,' Vindheim said. Global supply growth in the first quarter was as much as 13% in Europe and 8% globally, an effect that should be seen as a one-off correction following three years of challenging biology. Mowi expects supply growth to be 6% in 2025, before returning to trend growth of around 2-3% thereafter because of regulatory constraints. Mowi Feed also had a strong quarter with record-high earnings and sold volumes for a first quarter. 'Mowi's own feed continues to perform very well, constituting a crucially important contributing factor to our harvest volume growth of recent years,' said Vindheim. Mowi's Board has decided to pay a quarterly dividend of NOK 1.70 per share. For further information, please contact: Kristian Ellingsen, CFO, +47 905 14 275Kim Galtung Døsvig, IR Officer & Head of Treasury, +47 908 76 339 Ola Helge Hjetland, Group Communications Director, +47 970 67 932 About Mowi ASAMowi is one of the world's leading seafood companies and the largest producer of farm-raised Atlantic salmon in the world, with an estimated 2025 harvest of 530 000 tonnes from seven farming countries including Norway, Scotland, Ireland, Faroes, Iceland, Canada and Chile. Mowi is a fully integrated global seafood company, bringing salmon and other seafood of supreme quality to consumers around the world, partly under its own MOWI brand. Mowi is ranked as the most sustainable listed animal protein producer in the world by Coller FAIRR. With headquarters in Bergen, Norway, Mowi employs 11 800 people in 26 countries worldwide, and is listed on the Oslo Stock Exchange. Turnover was EUR 5.6 billion in 2024. For more information, please visit Forward looking statements This release may be deemed to include forward-looking statements, such as statements that relate to Mowi's goals and strategies, salmon prices, ability to increase or vary harvest volume, production capacity, trends in the seafood industry, restructuring initiatives, exchange rate and interest rate fluctuations, expected research and development expenditures, business prospects and positioning with respect to market, demographic and pricing trends, strategic initiatives, and the effects of any extraordinary events and various other matters (including developments with respect to laws, regulations and governmental policies regulating the industry and changes in accounting policies, standards and interpretations) on Mowi's business and results. Forward-looking statements are typically identified by words or phrases, such as "believe," "expect," "anticipate," "intend," "estimate," "may increase," "may fluctuate," "plan," "goal," "target," "strategy," and similar expressions or future or conditional verbs such as "may," "will," "should," "would," and "could." Forward-looking statements are Mowi's current estimates or expectations of future events or future results. Actual results could differ materially from those indicated by these statements because the realization of those results is subject to many risks and uncertainties. Mowi ASA's Annual Report contains additional information about factors that could affect actual results, including: changes to the price of salmon including the value of our biological assets; hedging risks; risks related to fish feed; economic and market risks; environmental risks; operational risks; risks related to escapes, disease and sea lice; product risks; risks related to our acquisitions; financing risks; regulation risks including relating to food safety, the aquaculture industry, processing, competition, anti-trust and anti-corruption; trade restriction risks; litigation risks; tax and accounting risks; strategic and competitive risks; and reputation risks. All forward-looking statements included in this release are based on information available at the time of the release, and Mowi assumes no obligation to update any forward-looking statement. This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act. This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act Attachments Mowi_Q1_2025_Report Mowi_Q1_2025_PresentationError 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
05-03-2025
- Business
- Yahoo
Mowi Announces Strategic Review of Feed Division
(Bergen, 4 March 2025) Mowi has today announced that it is initiating a strategic review of its integrated Feed division. The review will assess all available options, including a sale. In 2024, the Feed division generated operating revenues of EUR 1,122 million and Operational EBITDA of EUR 62 million. Its core assets include feed mills in Norway and Scotland with production capacity of 460,000 tonnes(1) and 240,000 tonnes respectively, i.e. combined capacity of 700,000 tonnes. These plants supplied practically all of the feed requirements of Mowi's European salmon farming operations last year. In total, Mowi's Feed division employs 140 FTEs. "In just a few years Mowi has grown from a 400,000 tonnes farmer to approaching a 600,000 tonne farmer with production in seven countries and 11 farming regions with all the complexity that entails. Mowi also has an extensive downstream business in 26 countries. In order to streamline our operations, we therefore feel the time is ripe to assess how our Feed division will be organised in the future,' said Ivan Vindheim, Mowi CEO. Mowi has engaged Arctic Securities to assist with the review. While the company will now initiate a structured process, there is no certainty as to whether any transaction will arise, nor as to the terms thereof. Mowi will provide further updates as appropriate but does not intend to comment further on the process unless and until a definitive agreement is reached or the process is terminated. (1) Including an ongoing 60,000 tonnes capacity expansion expected to be fully operational by Q2 2026 About Mowi ASAMowi is one of the world's leading seafood companies and the largest producer of farm-raised Atlantic salmon in the world with production in seven farming countries including Norway, Scotland, Ireland, Faroes, Iceland, Canada and Chile. Mowi is a fully integrated global seafood company, bringing salmon and other seafood of supreme quality to consumers around the world, partly under its own MOWI brand. Mowi is ranked as the most sustainable listed animal protein producer in the world by Coller FAIRR. With headquarters in Bergen, Norway, Mowi employs 11 800 people in 26 countries worldwide, and is listed on the Oslo Stock Exchange. Turnover was EUR 5.6 billion in 2024. For more information, please visit This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act
Yahoo
12-02-2025
- Business
- Yahoo
Record-breaking quarter ends a record year for Mowi
(Bergen, 12 February 2025) Mowi generated record-high operating revenues of EUR 1.50 billion in the fourth quarter which translated into an operational profit of EUR 226 million. Mowi ended 2024 with a string of records, for both the fourth quarter and the full year. The world's largest aquaculture company has never had higher turnover and harvest volumes than in 2024 when revenue was EUR 5.62 billion on 502,000 tonnes of salmon harvested. A harvest volume of 134,000 tonnes in the fourth quarter was itself a seasonal record. 'I am extremely pleased that we have continued to deliver on our strategy and our goals, and I am impressed with the way the organisation was once again able to produce both record volumes and record revenues in 2024. Our margins show that we were once again competitive on cost in 2024, which is vitally important in salmon farming. Falling feed prices have also contributed to somewhat reduced costs, and we expect that trend to continue in 2025,' said Mowi CEO Ivan Vindheim. The company's seawater production was very strong in the fourth quarter, and this has continued into 2025. 'We have seen a significant improvement this winter compared with last year, in terms of much better growth in sea, higher survival rates, better feed conversion rates and improved quality. This bodes well for the rest of the year and has prompted us to adjust our volume guidance for 2025 upwards, from 520,000 tonnes to 530,000 tonnes,' said Vindheim. Mowi recently entered into an agreement with Vigner Olaisen AS to purchase their shares in Nova Sea, which will increase Mowi's ownership of Nova Sea from 49% to 95%. Nova Sea is a leading salmon farmer in production area 8 in Northern Norway and is present in the entire value chain from broodstock and smolt production to harvesting and sales. The company expects to harvest 52,000 tonnes of salmon in 2025. Nova Sea and the Olaisen family are pioneers in the Norwegian aquaculture industry and the company is known for its strong biological performance and industry-leading margins. 'With Nova Sea on board, we expect our volumes to reach 600,000 tonnes next year, and we will be well on our way to harvesting 400,000 tonnes in Norway alone. Mowi was harvesting 375,000 tonnes globally as recently as 2018, so our volumes will have grown by 225,000 tonnes in just a few years. This corresponds to annual growth of 6.1% compared with 3.1% for the wider industry,' said Vindheim. Volume growth across the value chain is an important strategic pillar for Mowi and the company has no plans to stop growing now. 'We will continue to invest in the whole value chain and have a number of growth initiatives underway. Perhaps the most important of these is our postsmolt strategy, which is now starting to show results. We expect larger, more robust smolt to have a significant impact to our biological performance, including on fish welfare' Vindheim said. Mowi was recently ranked the most sustainable listed animal protein producer for the sixth consecutive year by the Coller FAIRR Protein Producer Index. The Coller FAIRR Protein Producer Index is the world's most detailed sustainability assessment of meat, dairy and farmed fish producers in the world. Record year for Consumer Products and FeedMowi Consumer Products, the group's value-added business, had yet another strong quarter and year with record high operational profit of EUR 53 million for the fourth quarter and EUR 146 million for the year. Consumer Products also set a new volume record, producing 247,000 tonnes in the year, up 6.5% on 2023. 'We are seeing good retail demand for our products and continue to develop new and innovative high-quality products to keep up with new trends and consumers' ever-changing needs,' Vindheim said. Mowi Feed also had another strong quarter, delivering record volumes and revenues. The full year was also record-breaking, with operational profit of EUR 62 million on 585,000 tonnes of feed. 'Our feed division has seen substantial growth in recent years, most recently growing by 12% in 2024 compared with the previous year. With Nova Sea on board we will need additional feed capacity in Norway in order to continue to grow, therefore we are undertaking a 60,000-tonne expansion project at our feed plant at Bjugn, Norway, with expected completion in the second quarter of 2026,' Vindheim said. Mowi's Board has decided to pay a quarterly dividend of NOK 2.00 per share. For further information, please contact: Kristian Ellingsen, CFO, +47 905 14 275Kim Galtung Døsvig, IR Officer & Head of Treasury, +47 908 76 339 Ola Helge Hjetland, Group Communications Director, +47 970 67 932 About Mowi ASAMowi is one of the world's leading seafood companies and the largest producer of farm-raised Atlantic salmon in the world, with an estimated 2025 harvest of 530 000 tonnes from seven farming countries including Norway, Scotland, Ireland, Faroes, Iceland, Canada and Chile. Mowi is a fully integrated global seafood company, bringing salmon and other seafood of supreme quality to consumers around the world, partly under its own MOWI brand. Mowi is ranked as the most sustainable listed animal protein producer in the world by Coller FAIRR. With headquarters in Bergen, Norway, Mowi employs 11 800 people in 26 countries worldwide, and is listed on the Oslo Stock Exchange. Turnover was EUR 5.6 billion in 2024. For more information, please visit Forward looking statements This release may be deemed to include forward-looking statements, such as statements that relate to Mowi's goals and strategies, salmon prices, ability to increase or vary harvest volume, production capacity, trends in the seafood industry, restructuring initiatives, exchange rate and interest rate fluctuations, expected research and development expenditures, business prospects and positioning with respect to market, demographic and pricing trends, strategic initiatives, and the effects of any extraordinary events and various other matters (including developments with respect to laws, regulations and governmental policies regulating the industry and changes in accounting policies, standards and interpretations) on Mowi's business and results. Forward-looking statements are typically identified by words or phrases, such as "believe," "expect," "anticipate," "intend," "estimate," "may increase," "may fluctuate," "plan," "goal," "target," "strategy," and similar expressions or future or conditional verbs such as "may," "will," "should," "would," and "could." Forward-looking statements are Mowi's current estimates or expectations of future events or future results. Actual results could differ materially from those indicated by these statements because the realization of those results is subject to many risks and uncertainties. Mowi ASA's Annual Report contains additional information about factors that could affect actual results, including: changes to the price of salmon including the value of our biological assets; hedging risks; risks related to fish feed; economic and market risks; environmental risks; operational risks; risks related to escapes, disease and sea lice; product risks; risks related to our acquisitions; financing risks; regulation risks including relating to food safety, the aquaculture industry, processing, competition, anti-trust and anti-corruption; trade restriction risks; litigation risks; tax and accounting risks; strategic and competitive risks; and reputation risks. All forward-looking statements included in this release are based on information available at the time of the release, and Mowi assumes no obligation to update any forward-looking statement. This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Mowi_Q4_2024_Report Mowi_Q4_2024_Presentation
