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Mowi third quarter results impacted by COVID-19 restrictions

Wednesday, November 4, 2020

Mowi achieved an operational EBIT of €80 million in the third quarter of 2020, compared with €148 million in the corresponding quarter of 2019. The company’s results in the third quarter were largely impacted by COVID-19 restrictions and seasonal high volumes.

“Our operations have been running close to normal despite further COVID-19 restrictions in the quarter. However, the pandemic still impacts out of home consumption to a large degree, and although retail sales are strong, our earnings are impacted by falling prices as a result of lower net demand,” said Mowi CEO, Ivan Vindheim.

Mowi reported operational revenues of €958 million (€1,023 million) in the third quarter of 2020. Total harvest volume in the quarter of 125,773 tons (116,989) was approximately in line with guidance. Full-year harvest guidance for 2020 is unchanged at 442,000 tons. Harvest guidance for 2021 is 445,000 tons.

“I am very pleased that both farming, feed and consumer products delivered all-time high quarterly volumes. Mowi’s integrated value chain has yet again demonstrated its strength during these unprecedented times. It is also encouraging to see that farming production cost has improved,” said Vindheim.

Mowi’s farming volumes have over the past few years been subject to significant growth. However, over time the company has been lagging somewhat behind the industry’s farming volume growth trajectory. Accordingly, Mowi will put even more focus on growing farming volumes going forward. Further to this, Mowi will arrange a Capital Markets Day on 17 March 2021 where this will be addressed in detail.

“Global supply growth in 2021 is expected to be 1% and would under normal circumstances be very supportive of strong salmon prices. While COVID-19 has significantly impacted the salmon market and prices in the short-term, we still strongly believe in the positive long-term outlook for the industry, and for Mowi in particular,” said Vindheim.

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