• Revenue: EUR1.5 billion in Q4 2024; EUR5.62 billion for the full year.
• Operational EBIT: EUR226 million in Q4 2024.
• Net Interest-Bearing Debt: EUR1.87 billion at year-end 2024.
• Earnings Per Share: EUR0.31 in Q4 2024.
• Annualized Return on Capital Employed: 17%.
• Harvest Volumes: 134,000 tonnes in Q4 2024; 502,000 tonnes for the full year.
• Cash Flow from Operations: Impacted by EUR80 million seasonal working capital tie-up.
• Equity Ratio: 46% at year-end 2024.
• Dividend: NOK2 per share for Q4 2024.
• Consumer Products Operational Profit: EUR53 million in Q4 2024.
• Feed Operational EBITDA: EUR21 million in Q4 2024.
• Cost Reduction Target: EUR300 million to EUR400 million over the next five years.
• 2025 Harvest Volume Guidance: Increased to 530,000 tonnes.

• Warning! GuruFocus has detected 6 Warning Signs with MHGVY.

Release Date: February 12, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Mowi ASA (MHGVY) achieved a record-breaking year in 2024, with harvest volumes surpassing 500,000 tonnes for the first time in the company's history.
• The company reported record high operating revenues of EUR 1.50 billion in Q4 2024, translating into an operational profit of EUR 226 million.
• Mowi ASA (MHGVY) has increased its harvest volume guidance for 2025 to 530,000 tonnes, indicating a continued growth trajectory.
• The acquisition of Nova Sea is expected to bring significant synergies and strengthen Mowi ASA (MHGVY) as a global leader in sustainable aquaculture.
• Mowi ASA (MHGVY) was ranked as the world's most sustainable animal protein producer for the sixth consecutive year, highlighting its commitment to sustainability and fish welfare.

Negative Points

• Mowi Ireland experienced low harvest volumes and operational challenges, leading to a loss in Q4 2024.
• The company faces potential tariff issues, which could impact its international trade and profitability.
• Mowi ASA (MHGVY) reported a net interest-bearing debt of EUR 1.87 billion at year-end, reflecting seasonal working capital tie-ups.
• The company is dealing with biological setbacks in certain regions, such as issues with string jellyfish and gills in Norway.
• Despite positive developments, the US market still lags behind Europe in demand recovery, affecting Mowi ASA (MHGVY)'s sales in the region.

Q & A Highlights

Q: How does Mowi ASA plan to approach its net debt target? Is it based on a per kilogram basis or a net debt-to-EBITDA basis? A: Ivan Vindheim, CEO, stated that the target is primarily based on EBITDA, which is then converted to a per kilogram basis.

Q: What are Mowi's thoughts on the potential impact of tariffs if Chile avoids them while other countries do not? A: Ivan Vindheim, CEO, mentioned that while it would be advantageous for Mowi compared to peers, the company prefers open markets with zero tariffs, as salmon is an international product.

Q: Why hasn't Mowi increased its supply guidance for Norway and Scotland despite good biology in the Northern Hemisphere? A: Ivan Vindheim, CEO, explained that it is still early days, and while there is potential for increased supply, they prefer to be prudent and may revisit the guidance later.

Q: Can you provide more details on the improved winter source situation compared to last year? A: Ivan Vindheim, CEO, highlighted that the superior share in Region North was 94% with 100% of fish vaccinated, attributing the improvement mainly to the vaccine, although lower sea temperatures also helped.

Q: How is the US demand for Mowi's products developing? A: Kristian Ellingsen, CFO, noted a positive development in the retail channel with a 13% increase in skin pack sales year-over-year, and some positive movements in food service, particularly in e-commerce and home delivery.

Q: How much could lower feed costs contribute to reduced blended department costs in 2025 compared to 2024? A: Kristian Ellingsen, CFO, indicated that feed prices are the main driver behind a EUR0.13 per kilo liveweight cost reduction, and this trend is expected to continue, translating into P&L cost savings in 2025.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.