Q2 2024 Mowi ASA Earnings Call Transcript
Key Points
- Mowi ASA (MHGVY) recorded EUR1.34 billion in operating revenues and an operating profit of EUR230 million for the second quarter of 2024, indicating a strong financial performance.
- The company achieved seasonally record-high harvest volumes of 110,500 tonnes, aligning with their guidance and demonstrating operational efficiency.
- Mowi ASA (MHGVY) reported a decrease in realized blended farming costs, with expectations for further reductions due to higher harvest volumes and lower feed prices.
- The company is on track to achieve a milestone farming volume of 500,000 tonnes for the year, marking a significant growth of 5.3% year over year.
- Mowi ASA (MHGVY) has implemented successful cost-saving initiatives, realizing EUR22 million in annualized cost savings so far in 2024, well ahead of their target.
- The Canadian government's decision to ban net-pen salmon farming in British Columbia by 2029 poses a significant challenge, as this region has been a part of Mowi's operations.
- Mowi ASA (MHGVY) experienced lower price realization in the Americas due to the cost-of-living crisis, impacting salmon consumption and pricing.
- The company's net interest-bearing debt stood at EUR1.88 billion, exceeding their long-term debt target of EUR1.7 billion.
- Mowi ASA (MHGVY) faced challenges with soft prices and margins in the Americas, particularly affecting their operations in Chile and Canada.
- The company reported a decrease in operational profit for Mowi Norway due to lower price achievement, despite good biological performance.
Good morning, everyone, both in the room and online. Welcome to the presentation of Mowi's second quarter results for 2024. My name is Ivan Vindheim, and I'm the CEO of Mowi, and the movie you just saw was from the opening of brand new state-of-the-art 100,000 tonnes primary processing plant at Jøsnøya in Hitra municipality in Central in Norway. A EUR72 million investment on time and on budget and with good value for money, I would say. So kudos to the organization for that.
And not to mention, 120 valuable jobs in coastal in Norway and yet another example of the salmon industry contributing to keeping Coastal Norway alive and thriving. As we do in Scotland, in Ireland, in the Faroes, in Iceland, in Chile and even in Canada and British Columbia, if anyone happens to believe otherwise.
Otherwise, I have, as usual, our CFO, Kristian Ellingsen, with me today, to help me with the financial figures and fundamentals. And after the presentation, our IRO, Kim Dosvig, will routinely host our Q&A session, and also who are following the presentation online,
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