February 16, 2021
Record high volumes for Mowi in 2020
Mowi has achieved all-time high volumes in all divisions in 2020, harvesting 440,000 tonnes of salmon, selling 240,000 tonnes of value-added products and producing 540,000 tonnes of feed.
Mowi's farming division recorded all-time high harvest volumes for the quarter and the full year. The company's consumer products segment continues to benefit from the shift in demand towards elaborated products and delivered all-time high quarterly and full-year volumes. Feed also delivered another good set of results, and, like consumer products, delivered record quarterly and full-year volumes.
"I would like to take this opportunity to thank all my colleagues at Mowi for delivering record-high volumes in all divisions in an extremely challenging year. At the same time, we have managed to keep everyone safe during the COVID-19 pandemic so far by employing the strictest biosecurity measures across our business," Mowi CEO Ivan Vindheim said.
The strength of Mowi's integrated value chain last year was demonstrated yet again as the consumer products division continues to capitalise on the shift in consumer demand from foodservice to retail. Mowi has produced more value-added products through its downstream facilities, and the development in the retail market continues to be strong.
Mowi's results in the fourth quarter were significantly impacted by COVID-19 and extensive lockdown measures, together with seasonal high supply.
The company reported operational EBIT of €49 million (US$59.2 million) in the fourth quarter of 2020, compared to €166 million (US$200.4 million) in the corresponding quarter in 2019. Costs are reduced compared with the fourth quarter last year. Hence, the decline in results is explained by significantly lower prices.
"The pandemic still impacts out-of-home consumption to a large degree, and although retail sales are strong and offset some of the demand shortfall, overall demand was down by approximately 5%," Vindheim said. "However, we still strongly believe in the positive long-term market outlook for the industry. A significant share of new customers in retail are expected to permanently increase their retail consumption rates post-COVID-19, even as the foodservice segment gradually reopens in due course."
Mowi reported operational revenues of €1,008 million (€1,112 million) in the fourth quarter of 2020. Total harvest volume in the quarter of 126,634 tonnes gutted weight (116,314) was in line with guidance. Full-year harvest guidance for 2021 is unchanged at 445,000 tonnes.
Recognition of sustainability efforts
Mowi's sustainability work was yet again recognised with the company being named the most sustainable animal protein producer in the world in the 2020 Coller FAIRR Protein Producer Index as well as getting recognised for leadership in corporate sustainability by global environmental non-profit CDP.
"Sustainability will be even more important going forward for both Mowi and the salmon farming industry. By producing healthy and delicious food in the most sustainable manner, we are part of the solution," said Vindheim.