Norway-based Mowi, the world’s largest salmon farming company, posted an all-time high operational profit of €322 million ($352.9 million) in the first quarter of 2023, up 56 percent on the same period last year, thanks to high salmon prices and a “stellar operational performance.”

The group also recorded its highest revenue ever of just under €1.4 billion ($1.5 billion) in the quarter.

The first quarter of 2023 was characterized by seasonally record-high salmon prices due to reduced global supply and good demand.

"High prices and stellar operational performance by my 11,500 colleagues in 25 countries across the world made the first quarter Mowi's best quarter ever," said Mowi CEO Ivan Vindheim.

"Compared with the first quarter last year, we are performing better on almost all indicators."

Mowi harvested 103,000 metric tons of salmon in the quarter, above guidance of 98,000 metric tons.

In 2022 Mowi harvested 464,000 metric tons, a record-high level at the time, and Mowi expects to grow this further in 2023 to 484,000 metric tons.

From volumes of 375,000 metric tons as recently as 2018, Mowi will have grown its farming volumes by as much as 109,000 metric tons in five years, or 5.2 percent per annum, which is above industry growth.

“Mowi's goal is to continue to capture market share in the salmon category in the coming years by growing our farming volumes, both organically and acquisitively," Vindheim said.

The group’s value-added products (VAP) division, Mowi Consumer Products, also had another solid quarter, delivering seasonally record- high results.

The division posted operational earnings before interest and taxes (EBIT) of €37.2 million ($40.8 million), up 75 percent on the same quarter a year ago, and revenue of €854.5 million ($936.5 million), up 18 percent.

Mowi said the increase in earnings was due to “outstanding operational performance” and continuing to achieve good sales to retail, partly helped by Easter and Lent season.

"Mowi's branding activities continue unabated with the Mowi brand now present in 18 countries; we are focused on continuing to grow with our customers, with the ultimate goal of de-commoditizing the salmon category," Vindheim said.

Additionally, Mowi Feed's sold volumes were record-high for a first quarter on continued strong growth in sea.

“Our feed continues to perform very well with both feed consumption and net growth above industry benchmark levels. Although the start of the year is low season for feed operations, this business area delivered seasonally record-high operational earnings," Vindheim said.

Mowi's Board has decided to pay a quarterly dividend of NOK 2 (€0.17/$0.19) per share.

Slams updated tax plan

On March 28, the Norwegian government announced its updated resource rent tax proposal to Parliament with few changes from the initial proposal presented in September 2022.

The proposed resource rent tax rate was reduced from 40 percent to 35 percent. The proposed total tax rate is now 57 percent including corporate tax, versus 62 percent previously, or about 75 percent with Norwegian wealth tax.

"This is completely disproportionate and not compatible with the Norwegian Government's stated growth ambitions for the industry," said Vindheim. "If passed by Parliament, the new tax regime will be hugely detrimental to the Norwegian aquaculture industry."

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