Mowi ASA (MOWI.OL) Q4 2024 Earnings Report

Revenue Performance: Q4 2024 revenue stood at €1.50 billion, a 4.06% quarter-over-quarter (QoQ) increase from €1.44 billion in Q3 2024 and a 7.23% YoY increase from €1399 million in Q4 2023.

Profitability: Mowi reported a net income margin of 14.3%, with net income reaching €216 million for the quarter, reflecting a significant 340.90% increase QoQ from €49 million in Q3 2024, and a 22.01% increase YoY from €177 million. Earnings per share (EPS) improved to €0.42, compared to €0.32 in Q3 2024.

Balance Sheet Health: The equity ratio was stable at 46%, with net interest-bearing debt of €1.87 billion; pro forma debt would be €2.42 billion post-acquisition of Nova Sea. Cash at the end of the quarter was €276 million, marking a solid liquidity position.

Cash Flow: Operating cash flow totaled €146 million with free cash flow at €38 million, demonstrating effective cash management. Mowi plans to expand feed capacity to support growth with an upcoming €60 million investment.

Management Commentary:

1. Growth Strategy: CEO Ivan Vindheim highlighted the acquisition of Nova Sea as a significant milestone, stating, "Together, we will have 157,000 tonnes harvest volumes in Northern Norway, which will provide the basis for significant synergies across the value chain."
2. Record Performance: Vindheim noted, "2024 was another record-breaking year for Mowi, having for the first time crossed the 500,000 tonnes mark in harvest volumes."
3. Cost Management: CFO Kristian Ellingsen commented on decreased costs: "We expect full P&L costs to be reduced in 2025, with feed prices stabilizing and biological performance improving.

Mowi ASA's performance in Q4 2024 reflects a strong alignment with strategic growth initiatives, reinforced by record harvest volumes and enhanced profitability metrics. The planned expansion and effective management of operational costs suggest a positive trajectory for 2025 that may exceed current market expectations. Investors should weigh the potential for robust returns against possible external risks, particularly in regulatory environments and market demand fluctuations.