Mowi Initiates Strategic Review of Feed Division Amidst Rapid Growth and Complexity

Mowi, the world's leading seafood company and the largest producer of farm-raised Atlantic salmon, has announced a strategic review of its integrated Feed division. The review, which will assess all available options, including a potential sale, aims to streamline Mowi's operations as the company approaches a 600,000-tonne farmer with production in seven countries and 11 farming regions. Mowi's Feed division generated operating revenues of EUR 1,122 million and Operational EBITDA of EUR 62 million in 2024, with core assets including feed mills in Norway and Scotland with a combined capacity of 700,000 tonnes.

The strategic review comes as Mowi has grown significantly in recent years, expanding from a 400,000-tonne farmer to approaching a 600,000-tonne farmer. This growth has increased the complexity of the company's operations, making it necessary to assess how the Feed division will be organized in the future. Mowi has engaged Arctic Securities to assist with the review, and while there is no certainty as to whether any transaction will arise, the company will provide further updates as appropriate.

Mowi's Feed division plays a crucial role in the company's value chain, supplying practically all of the feed requirements of Mowi's European salmon farming operations last year. The division's strong financial performance, with all-time high volumes and revenues in Q4 2024, highlights its strategic importance. With plans for further growth, Mowi announced a 60,000-tonne expansion project at its Bjugn feed plant in Norway, expected to be completed by Q2 2026.

The strategic review of the Feed division is driven by several key factors, including Mowi's rapid growth and increased complexity, the integration and synergies of the Feed division within the company's value chain, expansion and capacity requirements, and sustainability and certifications. The outcome of the review will depend on Mowi's assessment of the potential benefits and risks associated with each strategic option, such as retaining the Feed division, partnerships or joint ventures, or a potential divestment.

In conclusion, Mowi's strategic review of its Feed division reflects the company's commitment to optimizing its operations and ensuring long-term growth and profitability. The outcome of the review will have significant implications for Mowi's overall business strategy and its position in the global seafood market.