Q2 2026 Mowi ASA Earnings Call Transcript
Key Points
- Operational profit rose 23% year-over-year to EUR231 million, driven by record-high harvest volumes of 150,000 tonnes and a 3.5% reduction in production costs.
- Industry supply growth normalized to 2.6% (6.1% adjusted for inventory) in Q2, with expectations of near-zero growth for the rest of 2026 and 0-2% in 2027, supporting a tighter market and better prices.
- Prices improved, with spot prices up 6% year-over-year in Q2 and 21% in Q3-to-date, indicating a recovery from the low-price environment.
- Mowi Norway delivered a strong quarter with an operational profit of EUR159 million and a margin of EUR1.86 per kilo, benefiting from good cost performance and record-high harvest volumes.
- The company is on track with its cost-saving program, having realized EUR16 million in annualized savings year-to-date, and has achieved a total of EUR408 million since 2018.
- Mowi Feed completed a 100,000-tonne expansion at its Bjugn factory, improving self-sufficiency and supporting growth, with sales volumes up 9% year-over-year.
- The divestment of Canada East for CAD225 million sharpens the farming portfolio, focusing on higher-return geographies.
- Strong balance sheet with an equity ratio of 43.2% and a quarterly dividend of NOK2.30 per share declared.
- Consumer Products saw record-high sales volumes of 74,000 tonnes, up 14% year-over-year, despite weaker contract prices.
- Mowi Scotland and Canada delivered strong operational results, with margins of EUR1.80 and EUR2.05 per kilo, respectively.
- Soft prices in Q2 and through the summer, particularly in June, pressured earnings, especially in Region West Norway.
- Feed prices are rising due to weak pelagic fisheries, leading to an inflationary environment that may increase costs in the near term.
- Consumer Products earnings nearly halved year-over-year to EUR29 million, impacted by weaker contracts from last year's sluggish market.
- Mowi Chile's earnings were modest at EUR6 million, weighed down by soft prices and US tariffs on Chilean salmon.
- Mowi Ireland broke even due to soft prices, and Arctic Fish in Iceland made a small loss of EUR2 million due to low price achievement and harsh weather.
- Net interest-bearing debt increased to EUR2.81 billion, slightly above the long-term target of EUR2.70 billion.
- The company faces potential biological risks from rising sea temperatures and a brewing El Nino, which could impact operations in Chile and Canada.
- Working capital tie-up guidance was increased to EUR150 million due to feed inflation, and tax payments were raised to EUR220 million.
- The volume guidance for 2026 was reduced to 600,000 tonnes from 605,000 tonnes due to the Canada East divestment.
- Costs are expected to remain stable in Q3, but the underlying trend is upward, with potential for further increases in 2027.
Good morning, everyone, and welcome to the presentation of Mowi's second quarter results of 2026. Hope to those of you who are in the room here with me this morning at Salmon, our combined exhibition center and fish restaurant at Aker Brygge, and of course, to those of you who are following us online across the world, which is the majority.
And to those of you who are in the room with me this morning, I hope you have settled in well and had something to drink and grabbed a bite to eat, bite some of our delicious Mowi products. And to those of you who are following the presentation online, I hope you have made yourselves comfortable so you can follow along in quiet and please.
Otherwise, my name is Ivan Vindheim, and I'm the CEO of Mowi. And together with our CFO, Kristian Ellingsen, I will take you through the numbers and the fundamentals this morning, and to the best of my -- and our ability, add a few appropriate comments to them. And after the presentation, our IRO, Kim Dosvig, will routinely host a Q&A session for those of you
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