What's Happening?
Norwegian salmon farming company Mowi has announced an increase in its output forecast for 2025 despite experiencing a decline in second-quarter earnings. The company's earnings before interest and taxes (EBIT) fell by 8.7% year-on-year to €81.8 million ($95.2 million). Operational EBIT also declined by 17% to €188.5 million due to lower prices. Despite these challenges, Mowi reported operational revenue of €1.39 billion for the second quarter, marking a 4% increase compared to the previous year. The company harvested a record 133,000 tonnes in the second quarter, representing a 21% growth from last year. Mowi CEO Ivan Vindheim highlighted strong seawater growth and announced a revised volume guidance for 2025 to 545,000 tonnes, reflecting an annual growth of 9% from 2024.
Why It's Important?
Mowi's decision to raise its output forecast is significant for the global seafood industry, particularly in the U.S., where demand for sustainable seafood continues to grow. The company's increased production capacity could lead to more competitive pricing and availability of salmon products in the market. Additionally, Mowi's strategic acquisition of a majority stake in Nova Sea positions it to further expand its operations and influence in the industry. This move may impact U.S. seafood importers and distributors, potentially altering supply chains and market dynamics. The company's focus on cost savings through new technologies could also set a precedent for innovation in aquaculture, influencing industry standards and practices.
What's Next?
Mowi plans to harvest at least 600,000 tonnes by next year, aiming for a growth of 10% in 2026. The company is rapidly approaching its milestone of 400,000 tonnes in Norway alone. Mowi's Board of Directors has decided to pay a quarterly dividend of Nkr1.45 per share, reflecting confidence in its financial strategy. Stakeholders in the U.S. seafood industry may closely monitor Mowi's expansion and technological advancements, as these could affect import volumes and pricing. The company's focus on cost savings and efficiency may also prompt other industry players to adopt similar strategies, potentially leading to broader shifts in aquaculture practices.
Beyond the Headlines
Mowi's expansion and increased output forecast highlight the growing importance of sustainable seafood production. As environmental concerns continue to shape consumer preferences, Mowi's commitment to growth through technological innovation may influence industry standards. The acquisition of Nova Sea and the focus on seawater growth underscore the potential for increased collaboration and consolidation within the industry. These developments may lead to enhanced sustainability practices and improved resource management, benefiting both the environment and the seafood market.
