Mowi ASA

Reported Q2 revenue was EUR 1.60 billion, a record high for any quarter. Operational profit was EUR 231 million, up 23% year over year from EUR 189 million, with underlying EPS of EUR 0.28 and annualized ROCE of 13.6%; return on equity was 15.1%. Harvest volumes were 150,000 tonnes, while realized weighted production costs were EUR 5.20 per kilo and costs fell by EUR 26 million year over year. Net interest-bearing debt ended the quarter at EUR 2.81 billion (up from EUR 2.74 billion during the quarter), and the equity ratio was 43%/43.2%. For Q3, management expects relatively stable realized weighted production costs versus Q2 and stable contract share/prices in Norway quarter over quarter. Full-year farming volume guidance was trimmed to 600,000 tonnes from 605,000 tonnes due to the Canada East divestment; Mowi still targets at least 650,000 tonnes by 2029. Management also said feed working capital tie-up guidance increased to EUR 150 million from EUR 100 million and tax payments to EUR 220 million.

Ivan Vindheim said Q2 was another very strong operational quarter and a reasonably good financial quarter given soft prices, with Mowi standing out on KPIs. He emphasized that industry supply growth has normalized after a period of unusually strong growth and argued that tighter future supply should support better pricing, although he cautioned that higher sea temperatures and a brewing El Niño could make coming months more challenging. He also framed the Canada East sale as portfolio sharpening and reiterated confidence in Mowi’s long-term volume growth plan through more smolt, post-smolt, and unused license capacity.

Kristian Ellingsen highlighted all-time high revenue of EUR 1.6 billion and said stronger prices, better costs, and higher volumes lifted operating earnings versus Q2 2025. He pointed to a EUR 26 million cost reduction in the quarter and EUR 70 million year to date, driven mainly by lower feed prices, while warning that feed inflation is now turning up due to marine ingredients and a weak pelagic fishery season. He said net interest-bearing debt moved from EUR 2.74 billion to EUR 2.8 billion, Mowi issued EUR 250 million of green bonds at 3-month EURIBOR plus 118.8 bps, and the company remains on track for EUR 30 million of annualized cost savings in 2026 after realizing EUR 16 million year to date.

Analysts pressed management on whether recent demand strength was driven by specific regions, retail versus foodservice, or inventory restocking; management said European retail demand was especially strong, Asia was also solid, and frozen inventories did not appear unusually high. Questions on colder Norwegian sea temperatures and brewing El Niño led management to say conditions have been favorable so far, but rising temperatures and algae risk in Chile and Canada warrant attention, with mitigation systems already in place. Management also said it could not quantify feed formulation flexibility publicly and noted there was nothing significant in Q2 related to U.S. tariff refunds.