Capital Markets Day: Mowi is positioning itself for continued
volume growth and further cost improvement
(Bergen, 26 September 2024) Mowi is today hosting a
Capital Markets Day where the company presents its plans for
continued volume growth from 500,000 tonnes to 600,000 tonnes in
its farming division as well as further cost improvement in the
order of EUR 300-400 million.
The world’s largest farmer and value-added processer of salmon,
Mowi, today hosts a Capital Markets Day in Trøndelag, Norway, where
the company is presenting its plans and strategy to cement its
leading position in the industry in the coming years.
“After reaching a milestone 500,000 tonnes of salmon harvested
in 2024, we are now looking ahead to the next milestone of 600,000
tonnes which we aim to fulfil in 2029,” Mowi CEO Ivan Vindheim
said. “We will achieve this through better utilisation of license
capacity, while also improving productivity and biological
performance of existing production through our investment in
postsmolt,” Vindheim continued.
Furthermore, Mowi plans to reduce costs by EUR 300-400 million
during the same period through an ambitious cost improvement
programme.
600,000 tonnes and EUR 8.5 billion in 2029
Mowi’s strategy is built on three pillars – volume growth,
competitive costs and sustainability. The company has grown from
producing 375,000 tonnes of salmon in 2018 to an expected 500,000
tonnes in 2024. Now Mowi plans to continue that trend.
“We have grown faster than the rest of the industry in recent
years, and our goal is to continue to do so in the future. By
releasing more smolt and increasing our use of postsmolt we will be
able to harvest 600,000 tonnes of salmon in 2029 thereby
reinforcing our position as the world’s top producer of Atlantic
salmon,” Vindheim said.
Continued growth in Mowi’s farming operations will in turn lead
to growth in its two other divisions, namely Consumer Products and
Feed.
“The rest of the supply chain will grow in line with farming
going forward. To produce more salmon we need more feed, and more
salmon means more raw material for our 20 secondary processing
plants around the world,” Vindheim said
The company estimates revenue growth of 7-8% per year over the
next five years, resulting in revenue of EUR 8.5 billion in 2029,
compared with EUR 5.5 billion in 2023.
Mowi’s focus has been and will continue to be sea-based salmon
farming and related technology. The company is nonetheless closely
observing developments in other technologies and is prepared to
adopt new technologies as and when the time is right and they show
themselves to be profitable. Mowi is also looking to grow through
selective acquisitions, provided they fit into the company’s
operational strategy.
EUR 300-400 million in cost improvements
Mowi launched a cost improvement programme in 2018. Since then the
company has saved over EUR 300 million through 1,700 different
initiatives.
“It is imperative for Mowi to be the cost leader throughout the
value chain,” Ivan Vindheim said. “Today we are best or second best
on cost in all the regions where we farm salmon, and we are also
ahead in our downstream operations. However, in a world where our
input costs are always increasing, and more and more is being
demanded of us, we cannot rest on our laurels – cost improvements
are more important than ever. We therefore plan to strengthen our
position through a series of new measures, both biological and more
general, through which we will cut EUR 300-400 million in the next
five years,” Vindheim continued.
In addition to the company’s postsmolt venture and the
improvements in biological performance that it brings, Mowi’s
digitalisation and automation strategy is also central to the
company’s plans.
“We launched Mowi 4.0 in 2021 and since then have invested
heavily in a range of measures to introduce greater efficiency and
automation across our value chain. We are already seeing the
positive impact this has had on sustainability, productivity and
cost reduction, and we expect to reap further benefits in the years
to come,” Vindheim said.
Postsmolt strategy has huge effect on fish
welfare
The third and final pillar of Mowi’s strategy is sustainability.
Earlier this year TIME Magazine listed Mowi as one of the 500 most
sustainable companies for 2024, and highlighted the company’s
corporate responsibility and sustainable practices. Mowi also
emerged ahead of a strong field to be ranked the world’s most
sustainable animal protein producer for the fifth consecutive year
in the prestigious Coller FAIRR Protein Producer Index which
assesses the sustainability performance of 60 of the largest
publicly listed animal protein producers
“Sustainability is a central theme all across Mowi’s value
chain. That said, there is a particular focus on fish health and
conditions in sea at this time. Mowi is investing heavily in
postsmolt and Smart Farming solutions to improve fish health and
survival rates,” Vindheim said.
The release of larger smolt to sea leads to increased
productivity, higher survival rates and generally better fish
welfare. Next year, 25% of Mowi’s smolt will be postsmolt. In the
relevant regions in Norway as many as 50% of all smolt released
will be postsmolt in 2025, rising to 75% by 2029.
“All indications are that releasing larger and more robust smolt
to sea can increase survival rates by up to 50%, and reduce the
number of lice treatments in certain areas by 40%,” Vindheim
said.
Smart Farming also has a positive effect on fish welfare
according to Mowi’s CEO.
“We are continuing to roll out our Smart Farming concept in
Norway, meaning we are able to monitor far more closely each
salmon’s behaviour and wellbeing, and can implement more targeted
measures much faster than in the past. With the large numbers of
sensors now installed at our many farming sites up and down the
coast, we now have enormous quantities of data at our fingertips
giving us growing insight and knowledge of our salmon and the
conditions in sea in real time,” he said.
Demand keeps on growing
“One of the factors underpinning our industry’s success has been
and will continue to be high consumer demand for salmon. The
megatrends that in part are driving demand are stronger than ever.
The trend for healthy living, increasing demand for sustainable
proteins and not least the unique universal appeal of salmon make
our product the natural choice for a steadily growing number of
consumers,” Vindheim said.
Mowi expects growth in demand for salmon to continue to exceed
supply growth.
“We constantly strive to improve and develop our products to
keep up with consumers’ changing habits and tastes. Through our
MOWI brand we aim to transform the way salmon is sold. At the same
time it is important to recognise that salmon is still primarily
sold as a commodity in a highly competitive market and it is
essential for us to be the cost leader downstream as well. Our
Smart Factory concept is therefore extremely important for our more
than 30 factories worldwide. Our target is to cut EUR 60 million of
costs in this part of the value chain in the coming years,”
Vindheim said.
Mowi’s Capital Markets Day will be broadcast live from 08:00 at
mowi.com/investors, where it will also be possible to send
questions to group management.
For further information, please
contact:
Kristian Ellingsen, CFO, +47 905 14 275
Kim Galtung Døsvig, IR Officer & Head of Treasury,
+47 908 76 339
Ola Helge Hjetland, Group Communications Director, +47 970
67 932
About Mowi ASA
Mowi is one of the world's leading seafood companies and the
largest producer of farm-raised Atlantic salmon in the world, with
an estimated harvest for 2024 of 500,000 tonnes from seven farming
countries including Norway, Scotland, Ireland, Faroes, Iceland,
Canada and Chile.
Mowi is a fully integrated global seafood company, bringing
salmon and other seafood of supreme quality to consumers around the
world, partly under its own MOWI brand.
With headquarters in Bergen, Norway, Mowi employs 11 500 people
in 26 countries worldwide, and is listed on the Oslo Stock
Exchange. Turnover was EUR 5.5 billion in 2023.
For more information, please visit www.mowi.com.
Forward looking statements
This release may be deemed to include forward-looking statements,
such as statements that relate to Mowi's goals and strategies,
salmon prices, ability to increase or vary harvest volume,
production capacity, trends in the seafood industry, restructuring
initiatives, exchange rate and interest rate fluctuations, expected
research and development expenditures, business prospects and
positioning with respect to market, demographic and pricing trends,
strategic initiatives, and the effects of any extraordinary events
and various other matters (including developments with respect to
laws, regulations and governmental policies regulating the industry
and changes in accounting policies, standards and interpretations)
on Mowi's business and results. Forward-looking statements are
typically identified by words or phrases, such as "believe,"
"expect," "anticipate," "intend," "estimate," "may increase," "may
fluctuate," "plan," "goal," "target," "strategy," and similar
expressions or future or conditional verbs such as "may," "will,"
"should," "would," and "could." Forward-looking statements are
Mowi's current estimates or expectations of future events or future
results. Actual results could differ materially from those
indicated by these statements because the realization of those
results is subject to many risks and uncertainties. Mowi
ASA's Annual Report contains additional information
about factors that could affect actual results, including: changes
to the price of salmon including the value of our biological
assets; hedging risks; risks related to fish feed; economic and
market risks; environmental risks; operational risks; risks related
to escapes, disease and sea lice; product risks; risks related to
our acquisitions; financing risks; regulation risks including
relating to food safety, the aquaculture industry, processing,
competition, anti-trust and anti-corruption; trade restriction
risks; litigation risks; tax and accounting risks; strategic and
competitive risks; and reputation risks. All forward-looking
statements included in this release are based on information
available at the time of the release, and Mowi assumes no
obligation to update any forward-looking statement.
This information is subject to the disclosure requirements
pursuant to section 5-12 of the Norwegian Securities Trading
Act.
This information is subject to the disclosure requirements
pursuant to Section 5-12 the Norwegian Securities Trading Act
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