Mowi ASA

Mowi reported Q2 revenue of EUR 1.60 billion, a quarterly record, with operational profit of EUR 231 million versus EUR 189 million in Q2 last year, up 23% year over year. Underlying EPS was EUR 0.28, and annualized ROCE was 13.6%; management also said net interest-bearing debt was EUR 2.81 billion and equity ratio was 43.2%. Weighted production costs were EUR 5.20 per kilo, down EUR 26 million in absolute terms and 3.5% year over year, while harvest volumes reached a seasonally record high 150,000 tonnes. For Q3, management expects relatively stable realized costs versus Q2, while full-year farming volume guidance is 600,000 tonnes, down from 605,000 tonnes due to the Canada East divestment; the 2029 organic target remains at least 650,000 tonnes.

Ivan Vindheim framed the quarter as operationally very strong and financially solid even with soft seasonal pricing. He said the company is benefiting from better cost performance, strong volumes, and a portfolio that is becoming more focused after the Canada East divestment. He was constructive on the medium-term setup, arguing that tighter industry supply and regulatory constraints should support better prices going forward, while cautioning that sea temperatures and a possible El Niño could make the coming months more challenging.

Kristian Ellingsen emphasized the all-time high revenue, stronger earnings, and the balance sheet, noting equity share of 43.2%, ROCE of 13.6%, and ROE of 15.1%. He highlighted a EUR 26 million quarter-on-quarter cost reduction versus last year and EUR 70 million year-to-date, driven by lower feed prices and other cost improvements, while also noting feed inflation is now rising due to marine ingredients and poor pelagic fisheries. He said working capital tie-up guidance was increased to EUR 150 million from EUR 100 million because of feed inflation, tax payments were raised to EUR 220 million, and the company issued EUR 250 million of green bonds in May with a 5-year tenor.

Analysts asked what was driving recent demand strength, and management pointed to solid retail demand in Europe, especially in the U.K., Germany, Southern Europe and Eastern Europe, plus strong Asian demand and structural growth in China; they said there was no sign of unusual inventory buildup. On Chile and weather risk, management said it has upwelling and oxygen systems in place and believes the industry is better prepared than in past episodes, but the timing and severity of El Niño-related risks remain uncertain. Management also said there was no significant benefit in Q2 from U.S. tariff refunds and declined to quantify feed formulation flexibility publicly.