Capital Markets Day: Mowi is positioning itself for continued volume growth and further cost improvement

    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, [phone]
Kim Galtung Døsvig, IR Officer & Head of Treasury, [phone] 
Ola Helge Hjetland, Group Communications Director, [phone]

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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• CMD 2024 final