Mowi Q2 EBIT falls 18% on weaker salmon prices despite record revenue

Published 20/08/2025, 06:16
© Reuters.

Investing.com -- Mowi (OL:MOWI) on Wednesday reported weaker earnings in the second quarter of 2025 as lower salmon prices outweighed record revenue and harvest volumes.

Operational EBIT fell 18% to €188.5 million from €229.5 million a year earlier. Financial EBIT was €81.8 million, down from €89.6 million.

Net profit rose slightly to €41.5 million, compared with €37.7 million in the same period of 2024.

Revenue increased to €1.39 billion from €1.34 billion, marking the Norwegian seafood company’s highest-ever second-quarter sales. 

Harvest volumes reached 133,239 gutted weight tonnes, up from 110,419 tonnes a year earlier and above guidance of 130,000 tonnes.

Operational EBIT margin narrowed to 13.5% from 17.1%. Operational EBITDA was €241.8 million, down from €278.7 million.

Earnings per share were €0.09, compared with €0.07 in the second quarter of 2024. Underlying EPS was €0.25, down from €0.30. 

Return on capital employed slipped to 13.3% from 16.2%, while return on equity was 15.1%, compared with 19.5% a year earlier.

Cash flow from operations rose to €148.8 million from €121.8 million, while net interest-bearing debt ended the quarter at €1.90 billion, up from €1.88 billion a year earlier. 

A quarterly dividend of NOK 1.45 per share was declared, equal to half of underlying EPS.

Farming costs fell to €5.39 per kilogram from €5.84, the lowest since 2022, driven by lower feed prices and operational improvements. Feed costs were down about 8% from a year earlier. Total (EPA:TTEF) cost savings amounted to €49.4 million year-on-year in the quarter.

By segment, farming contributed €90 million to operational EBIT, down from €147.1 million. Markets delivered €39 million, compared with €53 million. 

Consumer Products more than doubled its EBIT to €52.2 million from €25.1 million, supported by higher sales volumes of 64,843 tonnes and lower raw material costs. 

Feed operations recorded €9.8 million in EBIT, up from €6.7 million, on record volumes of 135,459 tonnes.

On a regional basis, EBIT per kilo was €1.91 in Norway, €1.29 in Scotland, €1.17 in Chile and €0.23 in Canada. Ireland and the Faroe Islands reported €0.18 and €0.90 per kilo, respectively. Iceland recorded a negative EBIT per kilo of €-2.38.

Global salmon harvests rose 18% year-on-year to 668,000 tonnes in the quarter, led by a 27% increase in Norway. 

The supply growth reduced European reference prices by 34%. Despite the weaker pricing, global consumption reached a record 658,000 tonnes, up 17% from last year, with strong demand in China and the United States.

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