Mowi results impacted by the pandemic
The company’s results in the 2020 second quarter were substantially impacted by COVID-19, the extensive lockdown measures and the decline in prices for salmon in all markets resulted in reduced profits.
Mowi’s results in the 2020 second quarter were substantially impacted by COVID-19 and the extensive lockdown measures. Prices for salmon declined in all markets during the quarter resulting in reduced profits. The company achieved an operational EBIT of €99 million in the second quarter of 2020, compared with €211 million in the corresponding quarter of 2019.
“Despite the current market and logistical disruptions caused by COVID-19, Mowi’s operations have been running close to normal so far. We have implemented a wide range of protective measures to limit the spread of the virus in our operations. The safety and well-being of our employees is always top priority and we will do whatever we can to keep operations running without compromising health and safety,” sais Mowi CEO, Ivan Vindheim.
The company introduced a cost-saving program in 2018 and has cut cost by €118 million to date. However, Mowi continues to experience cost pressures in its farming operations from more challenging biology, stricter regulations and a general cost increase from input factors. This also impacts the rest of the value chain. After feed, labor is the most important cost item in Mowi. The board has therefore decided to include a productivity program in the cost-saving program, targeting a 10% reduction in headcount for Mowi as-is by 2024.
“Addressing cost will continue to be of utmost importance in the future. This will be realized through automation, digitalization, improvement of production processes and rightsizing of the organization. Mowi’s strategy is still to grow the company and the aim is to continue to be a net job creator,” said Vindheim.