Higher costs halved Mowi Scotland’s operating profit last year
Norwegian-owned salmon farmer made £27m in 2022
Mowi Scotland’s operating profit fell by half last year to £27 million compared to the £54m made in 2021, its newly published annual report for 2022.
The salmon farmer’s 2022 harvest volume of 48,375 gutted weight tonnes was 25% lower than the 64,405 gwt produced in 2021. Strong prices meant that turnover was +3.74% higher at £443.3 but the increased revenue was offset by higher costs due to biological challenges.
“The challenges faced by the company relate to fish health primarily affected by sea lice, cardiomyopathy (CMS), gill disease, treatment losses and to a lesser extent algal bloom. These biological challenges result in higher mortality, lower biomass growth and downgraded product, all of which lead to increases in the production cost per kilo and decreased sales prices,” wrote Mowi Scotland’s directors.
“Overall, profit on ordinary activities before taxation was 5.89% of sales revenue in 2022 compared to 12.4% in 2021, predominantly driven by the increase in the cost of sales.”
Acquisitions
During the year Mowi Scotland bought salmon farmer Wester Ross Fisheries Ltd and its subsidiary companies, Ardessie Salmon Ltd, and Wester Ross Property Investment Co Ltd, in June, and Dorset Cleanerfish Ltd, which supplies Mowi with cleaner fish, in August.
On February 7 of this year Mowi purchased 100% of Dawnfresh Farming Ltd, which has the capacity to produce around 5,500 tonnes of trout or salmon.
Mowi earned around £231.2m for salmon sold to Europe, £201.7m from the UK market, £4.7m from exports to North America, and £5.6m from the rest of the world.
Directors’ emoluments, including taxable benefits, amounted to £1.149m, with the highest paid director receiving emoluments of £444,314 (2021: £412,859).
Mowi Scotland employed 783 staff in 2022, 11 more than the year before, and paid £36.654m (£36.157m) in wages and social security and pension costs.
The company’s much lower pre-tax profit of £26.09m (£53.08m) was a factor in Mowi Scotland paying a much lower tax bill of £1.269m, compared to £17.462m in 2021.
