Mowi ASA (MHGVY) Q3 2025 Earnings Call Highlights: Record Harvests and Strategic Growth Amid ...

This article first appeared on GuruFocus.

Release Date: November 05, 2025

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

Positive Points

Mowi ASA (MHGVY) reported record high harvest volumes of 166,000 tons, slightly above their guidance. The company achieved a 5% year-over-year reduction in production costs, contributing to a significant decrease in P&L costs. Mowi ASA (MHGVY) has increased its farming volume guidance for the year, expecting a 10.5% growth year-over-year. The acquisition of Novosi was approved and closed, with expected synergies of 34 million. Consumer products and feed divisions delivered strong quarterly results, with record high earnings.

Negative Points

The third quarter was characterized by soft prices, with prices even below industry costs. Mowi ASA (MHGVY) reported a loss of 31 million in Canada due to challenging biological conditions. The company faced lower spot prices, which negatively impacted operational EBIT. There are concerns about potential biological risks in Chile due to increased biomass. The company is facing uncertainties related to tariffs in the US, which could impact prices and trade flows.

Q & A Highlights

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Q: We've seen in Chile quite a buildup in overall biomass. What's your view on biology in Chile based on this higher biomass there? And do you fear that this could backlash into worse productivity later? A: The biology in Chile has been really good this year and last year, with the lowest cost in Mowi's operations in Chile. We expect continued good biology going forward.

Q: You're now going into closed cage post-smolt production. Is it the same design for all the ones you're ordering, or is it different? A: We have been using this technology in Norway since 2013. With the new environmental licensing scheme in Norway, we are expanding from 6 to 10 closed containment systems for post-smolt production, using the same technology.

Q: Have you seen or experienced any impact from the tariffs in the US on prices to end consumers, consumption, or trade flows? A: So far, there has been an impact, but nothing dramatic. We are monitoring the situation to see how it develops.

Q: How is demand in China given the strong developments in recent quarters? A: China has shown strong demand, now accounting for around 6% of global salmon consumption. The market benefits from lower prices, a growing middle class, improved logistics, and innovative sales channels like e-commerce and home delivery.

Story Continues

Q: Can you quantify expected farming costs decline in 2026 as you see it today? A: While we choose not to be specific, there is potential for costs to be lower than the current level of 5.4 per kilo. The biomass cost at stock has reduced by 4% quarter over quarter and 5% year over year.

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

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