Mowi ASA is a Norwegian company headquartered at Sandviksboder 77A/B, 5035 Bergen. Mowi ASA is a publicly listed company on the Oslo Stock Exchange, with the ticker symbol MOWI.
The Group\u2019s operations are described in Note 4. Mowi has operations in 26 countries and has structured its operations in three Business Areas: Feed, Farming and Sales & Marketing. The Feed factories are located in Norway and Scotland. The Group\u2019s farming activities are located in Norway, Scotland, Canada, Chile, Ireland, Iceland and the Faroe Islands. Sales & Marketing comprises the global sales organisation, in addition to the value-added operations in Consumer Products.
Mowi farms Atlantic salmon (Salmo salar), both in seawater using pens or semi-closed containment systems and in freshwater using lochs (in Scotland only), flow-through and Recirculating Aquaculture Systems (for smolts and postsmolts). Mowi does not use juvenile seeds stocks captured in the wild as input to our salmon production. Production volumes are presented in Part 1. Production countries and location of assets are disclosed also in Part 1 and in our Capital Markets Day presentation.
Comparable information for one year is presented in this year's Annual Report.
The material accounting policies applied in the preparation of these consolidated financial statements are described below. These policies have been consistently applied to all periods presented.
Statement of compliance and basis of preparation
As of December\u00a031, 2024, the consolidated financial statements of Mowi ASA and its subsidiaries (\u2018\u2018the Group\u2019\u2019 or \u2018\u2018Mowi\u2019\u2019) have been prepared in accordance with IFRS\u00ae Accounting Standards as adopted by the EU. In compliance with the Norwegian Accounting Act, additional disclosures are included in the notes to the financial statements of Mowi ASA.
Any new standards and amendments adopted by the Group in 2024 are described in Note 33. At the end of 2024, new standards and changes to existing standards and interpretations have been enacted but are not yet effective. Any relevant effects for Mowi are further described in Note 33.
The consolidated financial statements have been prepared on the historical cost basis, except when IFRS requires recognition at fair value. This relates to the measurement of certain financial instruments and valuation of the biomass as further described below. The reporting period follows the calendar year.
Consolidation
Consolidated financial statements present the Group\u2019s financial position, comprehensive income, changes in equity and cash flow. All intragroup transactions, receivables and liabilities are eliminated.
When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with the Group's accounting policies.
Subsidiaries
The Group\u2019s consolidated financial statements comprise the financial statements of the parent and its subsidiaries as at
December\u00a031, 2024. Control is achieved when the Group is exposed, or is entitled, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee.
Generally, there is a presumption that a majority of voting rights results in control. To support this presumption and when the Group has less than a majority of the voting or similar rights in an investee, the Group considers all relevant facts and circumstances in assessing whether it has power over an investee.
Consolidation of a subsidiary begins when the Group obtains control over the subsidiary and ceases when the Group loses control of the subsidiary.
Investment in associated companies
Associated companies are companies in which the Group has a significant non-controlling interest (normally ownership of 20-50%). Significant influence is the power to participate in the financial and operating policy decisions of the investee, but not to exercise control or joint control over those policies.
The Group's investments in its associated companies are accounted for using the equity method. The financial statements of the associate are prepared for the same reporting period as the Group. When necessary, adjustments are made to bring their accounting policies in line with those of the Group.
The statement of comprehensive income reflects the Group's share of the results deriving from the associate's operations.
Foreign currency translation
The financial statements for the Group are presented in EUR, which is the functional currency of the parent company. The functional currency of the subsidiaries is their local currency, with the exception of the holding companies in Norway in addition to Mowi ASA, Mowi Seawater Norway AS, Mowi Markets Norway AS, Mowi
Feed AS, Arctic Fish Holding AS, and Waynor Trading AS which have EUR as their functional currency, subsidiaries in Chile, Singapore, and Vietnam which have USD as their functional currency, and subsidiaries in Iceland which have EUR as their functional currency.
On consolidation, exchange differences arising from the translation of any net investment in foreign entities are recognised in other comprehensive income. When a foreign operation is sold the associated exchange differences are reclassified to profit or loss, as part of the gain or loss on sale.
Goodwill and fair value adjustments arising on the acquisition of a foreign operation are treated as assets and liabilities of the foreign operation and translated at the closing rate.
Translation of transactions in foreign subsidiaries
Profit or loss transactions in foreign subsidiaries are translated to the presentation currency using the average exchange rate for the reporting month, unless exchange rates in the period have fluctuated significantly, in which case the exchange rates in effect on the transaction dates are applied. Assets and liabilities of foreign subsidiaries are translated at the exchange rate at the end of the reporting period.
Transactions in foreign currencies
Foreign currency transactions are translated using the exchange rate at the time of the transaction. Receivables, debt and other monetary items in foreign currency are measured at the exchange rate at the end of the reporting period, and the translation differences are recognised in profit or loss. Other assets in foreign currencies are translated at the exchange rate in effect on the transaction date.
Financial instruments - initial and subsequent measurement
Financial assets
The Group\u00b4s financial assets are derivatives, non-listed equity instruments, trade receivables and cash and cash equivalents.
The classification of financial assets at initial recognition depends on the financial asset\u2019s contractual cash flow characteristics and the Group\u2019s business model for managing them. Except for trade receivables that do not contain a significant financing component, the Group initially measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs.
The Group classified its financial assets into 2 categories: financial assets at amortised cost and financial asset at fair value through profit and loss. The Group does not apply hedge accounting.
Derivatives at fair value through profit and loss
Financial assets at fair value through profit and loss include financial assets held for trading, financial assets designated through profit or loss, or financial assets mandatorily required to be measured at fair value. Financial assets are classified as held for trading if they are acquired for the purpose of selling or repurchasing in the near terms. Derivatives, including embedded derivatives, are also classified as held for trading.
The category includes derivatives instruments such as foreign exchange contracts, interest rate swaps and salmon derivatives. The Group trades in salmon derivatives, both as an operational hedging activity and a financial activity. Operational trading of salmon derivatives is presented as other operating income, while financial trading of salmon derivatives is presented as other financial items.
Financial liabilities
Financial liabilities are classified, at initial recognition, as loans and borrowings, payables, or as financial liabilities at fair value through profit and loss (derivatives), as appropriate. Financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs.
Derivatives are financial liabilities when the fair value is negative, accounted for as derivatives as assets.
Financial liabilities that arise from supplier finance arrangement are classified within Trade payables in the statement of financial position if they have a similar nature and function to trade payables. This is the case if the supplier finance arrangement is part of the working capital used in the normal operating cycle,\u00a0 and the terms of the liabilities that are part of the supply chain finance arrangement are not substantially different from the terms of trade payables that are not part of the arrangement. Cash flows related to liabilities arising from supplier finance arrangements that are classified in Trade payables in the statement of financial position are included in operating activities in the statement of cash flow.
Revenue
Revenue from contracts with customers is recognised when control of the goods are transferred to the customer at an amount that reflects the consideration to which the Group expects to be entitled in exchange for those goods. The Group has generally concluded that it is the principal in its revenue arrangements, because it typically controls the goods before transferring them to the customer.
Sale of fish products
Revenue for the Group derives mainly from the sale of fish and elaborated fish products either on spot sales or from contracts. The Group recognises revenue from the sale of fish and elaborated fish products at the point in time when control of the goods is transferred to the customer. Revenue is generally recognised on delivery of the goods (i.e. a certain point in time). Based on group business of sale of fish and elaborated fish products the customers do not pay any advances. The normal credit term is 30 days upon delivery, and based on the nature of the product there is generally no right of return or warranties. Refund is only given if delivered goods is damaged or delivered with discrepancy compared to agreement, such is immaterial.
The Group considers whether there are other promises in the contract that are separate performance obligations to which a portion of the transaction price needs to be allocated, currently no multiple performance obligations have been identified. In determining the transaction price for the sale of goods, the Group considers the effects of variable consideration, the existence of significant financing components and consideration payable to
the customer (if any). At the balance sheet date the group has no outstanding performance obligations in contracts that have original duration of more than 1 year.
Biomass
Changes in the estimated fair value of the biomass are recognised in profit or loss. The fair value adjustment is presented in the statement of comprehensive income as \u201cNet fair value adjustment biomass\u201d. The net fair value adjustment consists of \u201cfair value adjustment on biological assets\u201d, \u201cfair value adjustment on harvested fish\u201d and \u201cfair value on incident based mortality\u201d, see Note 6. The fair value adjustment on biological assets represents the change in fair value of the biomass less the change in accumulated cost of production for the biomass. The fair value adjustment on harvested fish is the release from stock of the fair value adjustment related to the fish harvested in the period. The fair value adjustment on incident based mortality is the release from stock of the fair value adjustment related to the fish recognised as incident based mortality in the period. The accumulated cost of incident based mortality is included in \u201ccost of materials\u201d in the statement of comprehensive income.
Goodwill and licenses
Goodwill
Goodwill is initially measured at cost, and is the excess of the aggregate of the consideration transferred and the amount recognised for a non-controlling interest in the net identifiable assets acquired and liabilities assumed through a business combination.
After initial recognition, goodwill is measured at cost less any accumulated impairment losses. For the purpose of impairment testing, goodwill acquired in a business combination is, from the acquisition date, allocated to each of the Group\u2019s cash-generating units (CGU) that are expected to benefit from the combination, irrespective of whether other assets or liabilities of the acquiree are assigned to those units.
Where goodwill has been allocated to a CGU and part of the operation within that unit is disposed of, the goodwill associated with the disposed operation is included in the carrying amount of the operation when determining the gain or loss on disposal. Goodwill disposed of in such circumstance is measured on the basis of the relative values of the disposed operation and the portion of the cash-generating unit retained. Goodwill is tested for impairment annually as at December 31, and when circumstances otherwise indicate that the carrying value may be impaired. Impairment is determined for goodwill by assessing the recoverable amount of each CGU (or group of CGUs) to which the goodwill relates. When the recoverable amount of the CGU is less than its carrying amount, an impairment loss is recognised. Impairment losses relating to goodwill cannot be reversed in future periods.
Other intangible assets (licenses)
Intangible assets acquired separately are measured on initial recognition at cost. The cost of intangible assets acquired in a business combination is their fair value at the date of acquisition. Following initial recognition, intangible assets are carried at cost less any accumulated amortisation and accumulated impairment losses. The useful lives of intangible assets are assessed as either finite or
indefinite. The value of licenses acquired by Mowi (mainly licenses for salmon farming) in Norway, Chile, Ireland, the Faroe Islands, Scotland, Canada, and Iceland are considered indefinite. Intangible assets with indefinite useful lives are not amortised, but are tested for impairment annually or when circumstances otherwise indicate that the carrying value may be impaired at the cash-generating unit level. The indefinite life classification is reviewed annually to determine whether it continues to be appropriate. If not, the change in useful life from indefinite to finite is made on a prospective basis.
Property, plant and equipment
Property, plant and equipment are measured at acquisition cost less accumulated depreciation and any impairment. Costs associated with normal maintenance and repairs are expensed as incurred. Costs of major replacements and renewals that substantially extend the economic life and functionality of the asset are capitalised. Assets are normally considered property, plant and equipment if the useful economic life exceeds one year. Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset form part of the cost of that asset. Straight-line depreciation is applied over the useful life of property, plant and equipment, based on the asset\u2019s historical cost and estimated residual value at disposal. If a substantial part of an asset has an individual and different useful life, this part is depreciated separately. The asset\u2019s residual value and useful life are evaluated annually. The gain or loss arising from the disposal or retirement of an asset is determined as the difference between the sales proceeds and the carrying amount of the asset.
At the end of the reporting period, the carrying amounts of the Group\u2019s assets are reviewed to determine whether there are indications that specific assets have suffered an impairment loss. If such indications exist, the recoverable amount of the asset is estimated in order to determine the extent of net present value of discounted cash flows (value in use). If estimated recoverable amount is lower than book value impairment is recognised.
Impairment of Non-current assets
Upon indication, each cash generating unit, CGU, is tested for impairment. If the recoverable amount of a cash-generating unit is estimated to be less than the carrying amount of the net assets of the cash-generating unit, impairment to the recoverable amount is recognised. If impairment is required, goodwill is written down first, thereafter other intangible assets. If further impairment is required, other assets will be written down on a pro-rata basis.
Impairment losses recognised in previous periods are reversed if the recoverable amount in a later period exceeds the carrying amount. The reversal will not exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognised for the asset in prior years.
Leasing
The determination of whether a contract is, or contains, a lease is assessed at the inception of the lease and is based on whether the contract conveys a right to control the use of an identified asset or assets for a period of time in exchange for consideration. For contracts where the Group is the lessee, right-of-use assets and lease liabilities are recognised at the commencement of the lease.
Right-of-use assets are measured at cost, less accumulated depreciation and impairment losses. Right-of-use assets are depreciated over the shorter of the lease term and the useful life of the asset. When a purchase option has been included in the cost at recognition, the right-of-use asset is depreciated over the estimated useful life of the asset.
The lease liabilities at commencement date is measured at the present value of the lease payments. The lease payments are discounted using the Group's incremental borrowing rate as the interest rate implicit in the lease is not readily determinable. The incremental borrowing rate for each business unit is based on SOFR with an addition of a country specific margin reflecting the interest the group would have had to pay to borrow the funds to purchase a similar asset in a similar economic environment .
\u00a0
Short term leases (lease term less than 12 months) and leases of low-value assets are not recognised as right-of-use assets and lease liabilities, as the recognition exemptions for these leases is applied. Lease payments of such leases are recognised as expense over the lease term.
For leasing contracts with optional renewal period, and where we are reasonably certain to exercise this option, the renewal periods are included in the calculation of the lease liability and asset.
The Group has lease contracts for various assets used in its operation, the main asset group being transportation. Lease terms and other conditions vary. Refer to note 29 for further information.
Inventory
Inventories mainly comprise feed, goods in progress, packaging materials and finished goods. Inventories of goods are measured at the lower of cost and net realisable value.\u00a0\u00a0\u00a0\u00a0
The cost of finished goods includes direct material costs, direct personnel expenses and indirect processing costs (full production cost). Interest costs are not included in the inventory value. The cost price of purchased goods is the actual purchase price. The cost is based on the principle of first-in first-out, except for feed and value-added-products, where a weighted average is used.
If fish farmed by the Group is included in inventory as a raw material for further processing in one of the Group's processing entities, such fish is included in inventory at fair value less cost to sell at harvest.
Biological assets
Fair value of biological assets is calculated based on a present value model which does not rely on historical cost. Fish ready for harvest (mature fish), are valued at expected sales price with a deduction of cost related to harvest, transport etc. For fish not ready for harvest (immature fish), cost to completion is also deducted. The model uses an interpolation methodology where the known data points are the value of the fish when put to sea and when recognised as mature fish. Technically, the interpolation is calculated per location. The effect of this is that fish that have the same weight and quality are valued similarly. The interpolation model has a natural interpretation in the form of a present value calculation where an imputed rent of assets (i.e. theoretical license rent) per
location is included as part of the rate of return. Thus, the value is to a lesser degree affected by the site because low production cost at a high quality site is offset by a higher imputed rent and vice versa. All surplus return in the future is assigned to the licenses through a similarly high imputed rent of assets, and where any shortage in return is recognised in profit and loss immediately. The interpolation model is updated every month, with best estimates for time of harvest, remaining months at sea, expected price at time of harvest and estimated residual cost to grow the fish to harvest weight. The methodology has the effect that any changes in price will have full effect on the biomass at hand, while the price effect on increased weight going forward will be allocated to the license and recognised over time as remaining time at sea decreases. An effect of this is that even with high salmon prices there is no profit at the time the fish is put to sea because all surplus return is assigned to future periods (licenses). Correspondingly the fair value of small fish is rather insensitive to price fluctuations.
An interpolation model as described works best if important variables such as pace of growth, mortality and feed conversion ratios are constant per unit of time or weight increase. Experience shows that in particular there is a deviation from an even development during the first period in sea relating to increased value due, among other things to reduced risk after handling of the fish, vaccination and mortality related to the transfer to sea. This has been adjusted for.
Biological assets comprise eggs, juveniles, smolt and fish in the sea. Biological assets are, in accordance with IAS 41 and IFRS 13, measured at fair value less cost to sell. In line with IFRS 13, the highest and best use of the biological assets is applied for the valuation. In accordance with the principle for highest and best use, the fish is considered to have optimal harvest weight at 4 kg gutted. This corresponds to that a live weight of approximately 4.8 kg (there may be regional variances) or more are classified as mature fish, while fish that have still not achieved this weight are classified as immature fish. All fish at sea are subject to a fair value calculation, while broodstock and smolt are measured at cost less impairment losses.\u00a0
The calculation of the estimated fair value is based on market prices for harvested fish and adjusted for estimated differences in accordance with IFRS 13. The prices are reduced for harvesting costs and freight costs to market, to arrive at a net value back to farm. The valuation reflects the expected quality grading and size distribution. The valuation is completed for each Business Unit and is based on the biomass in sea for each seawater site and the estimated market price in each market derived from the development in recent contracts as well as spot prices. Where reliable forward prices are available, those have been used. The change in estimated fair value is recognised in profit or loss based on measurement as of each period, and is classified separately. At harvest, the fair value adjustment is classified as fair value adjustment on harvested fish. In cases of incident based mortality, the fair value adjustment is classified as fair value adjustment on incident based mortality when occurring. Both are included in net fair value adjustment of biological assets in the statement of comprehensive income.
Onerous contracts
At each reporting date, management assesses if there are contracts in which the unavoidable costs of meeting the Group's obligations under the contract exceed the economic benefits expected to be received in accordance with IAS 37. Fair value adjustment of biological assets is included in the unavoidable cost. This implies that the contract may be considered onerous even though the actual production cost of the products sold is lower than the contract price. Volumes used in the calculation is based on estimated remaining volumes for the contracts. Onerous contracts are classified as provisions in the statement of financial position.
Taxes
Income taxes comprise taxes on the taxable profit for the year, changes in deferred taxes and any adjustments in prior years' taxes. Taxes on transactions that are recorded in other comprehensive income or directly in equity do not form part of the tax expense in profit or loss and are recorded with the related transaction in other comprehensive income or directly in equity.
Tax payable is calculated using the nominal tax rate for the relevant tax jurisdiction at the end of the reporting period.
Deferred tax is calculated on the basis of temporary differences between accounting and taxation values at the close of the accounting year. Deferred tax assets arise from temporary differences that give rise to future tax deductions. Deferred tax assets are recognised to the extent that it is probable that a taxable profit will arise, against which the deductible temporary differences, and the carry forward of unused tax credits and unused tax losses, can be utilised.
Tax increasing and tax decreasing temporary differences are offset against each other to the extent that the taxes can be netted within one tax regime.
Restructuring cost
Provisions for restructuring costs will be recognised if the Company has, within the reporting period, published or initiated a restructuring plan, which identifies which parts of the Company and approximately how many employees will be affected, the actions that will be taken and when the plan will be implemented. Provisions are recognised only for costs that cannot be associated with future earnings. Costs related to restructuring are presented on a separate line in the statement of comprehensive income.
Share option schemes
The Group has share option schemes from 2021, 2022, 2023, and 2024 which will be settled in shares (equity settlement). The cost of equity-settled transactions is recognised as a payroll expense over the vesting period. The cumulative expense is recognised in other equity reserves within equity.
Cash flow statement and cash
Statement of compliance and basis of preparation
As of December\u00a031, 2024, the consolidated financial statements of Mowi ASA and its subsidiaries (\u2018\u2018the Group\u2019\u2019 or \u2018\u2018Mowi\u2019\u2019) have been prepared in accordance with IFRS\u00ae Accounting Standards as adopted by the EU. In compliance with the Norwegian Accounting Act, additional disclosures are included in the notes to the financial statements of Mowi ASA.
Any new standards and amendments adopted by the Group in 2024 are described in Note 33. At the end of 2024, new standards and changes to existing standards and interpretations have been enacted but are not yet effective. Any relevant effects for Mowi are further described in Note 33.
The consolidated financial statements have been prepared on the historical cost basis, except when IFRS requires recognition at fair value. This relates to the measurement of certain financial instruments and valuation of the biomass as further described below. The reporting period follows the calendar year.
Statement of compliance and basis of preparation
As of December\u00a031, 2024, the consolidated financial statements of Mowi ASA and its subsidiaries (\u2018\u2018the Group\u2019\u2019 or \u2018\u2018Mowi\u2019\u2019) have been prepared in accordance with IFRS\u00ae Accounting Standards as adopted by the EU. In compliance with the Norwegian Accounting Act, additional disclosures are included in the notes to the financial statements of Mowi ASA.
Any new standards and amendments adopted by the Group in 2024 are described in Note 33. At the end of 2024, new standards and changes to existing standards and interpretations have been enacted but are not yet effective. Any relevant effects for Mowi are further described in Note 33.
The consolidated financial statements have been prepared on the historical cost basis, except when IFRS requires recognition at fair value. This relates to the measurement of certain financial instruments and valuation of the biomass as further described below. The reporting period follows the calendar year.
Consolidation
Consolidated financial statements present the Group\u2019s financial position, comprehensive income, changes in equity and cash flow. All intragroup transactions, receivables and liabilities are eliminated.
When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with the Group's accounting policies.
Subsidiaries
The Group\u2019s consolidated financial statements comprise the financial statements of the parent and its subsidiaries as at
December\u00a031, 2024. Control is achieved when the Group is exposed, or is entitled, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee.
Generally, there is a presumption that a majority of voting rights results in control. To support this presumption and when the Group has less than a majority of the voting or similar rights in an investee, the Group considers all relevant facts and circumstances in assessing whether it has power over an investee.
Subsidiaries
The Group\u2019s consolidated financial statements comprise the financial statements of the parent and its subsidiaries as at
December\u00a031, 2024. Control is achieved when the Group is exposed, or is entitled, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee.
Generally, there is a presumption that a majority of voting rights results in control. To support this presumption and when the Group has less than a majority of the voting or similar rights in an investee, the Group considers all relevant facts and circumstances in assessing whether it has power over an investee.
Investment in associated companies
Associated companies are companies in which the Group has a significant non-controlling interest (normally ownership of 20-50%). Significant influence is the power to participate in the financial and operating policy decisions of the investee, but not to exercise control or joint control over those policies.
The Group's investments in its associated companies are accounted for using the equity method. The financial statements of the associate are prepared for the same reporting period as the Group. When necessary, adjustments are made to bring their accounting policies in line with those of the Group.
The statement of comprehensive income reflects the Group's share of the results deriving from the associate's operations.
Foreign currency translation
The financial statements for the Group are presented in EUR, which is the functional currency of the parent company. The functional currency of the subsidiaries is their local currency, with the exception of the holding companies in Norway in addition to Mowi ASA, Mowi Seawater Norway AS, Mowi Markets Norway AS, Mowi
Feed AS, Arctic Fish Holding AS, and Waynor Trading AS which have EUR as their functional currency, subsidiaries in Chile, Singapore, and Vietnam which have USD as their functional currency, and subsidiaries in Iceland which have EUR as their functional currency.
On consolidation, exchange differences arising from the translation of any net investment in foreign entities are recognised in other comprehensive income. When a foreign operation is sold the associated exchange differences are reclassified to profit or loss, as part of the gain or loss on sale.
Goodwill and fair value adjustments arising on the acquisition of a foreign operation are treated as assets and liabilities of the foreign operation and translated at the closing rate.
Translation of transactions in foreign subsidiaries
Profit or loss transactions in foreign subsidiaries are translated to the presentation currency using the average exchange rate for the reporting month, unless exchange rates in the period have fluctuated significantly, in which case the exchange rates in effect on the transaction dates are applied. Assets and liabilities of foreign subsidiaries are translated at the exchange rate at the end of the reporting period.
Transactions in foreign currencies
Foreign currency transactions are translated using the exchange rate at the time of the transaction. Receivables, debt and other monetary items in foreign currency are measured at the exchange rate at the end of the reporting period, and the translation differences are recognised in profit or loss. Other assets in foreign currencies are translated at the exchange rate in effect on the transaction date.
Foreign currency translation
The financial statements for the Group are presented in EUR, which is the functional currency of the parent company. The functional currency of the subsidiaries is their local currency, with the exception of the holding companies in Norway in addition to Mowi ASA, Mowi Seawater Norway AS, Mowi Markets Norway AS, Mowi
Feed AS, Arctic Fish Holding AS, and Waynor Trading AS which have EUR as their functional currency, subsidiaries in Chile, Singapore, and Vietnam which have USD as their functional currency, and subsidiaries in Iceland which have EUR as their functional currency.
On consolidation, exchange differences arising from the translation of any net investment in foreign entities are recognised in other comprehensive income. When a foreign operation is sold the associated exchange differences are reclassified to profit or loss, as part of the gain or loss on sale.
Goodwill and fair value adjustments arising on the acquisition of a foreign operation are treated as assets and liabilities of the foreign operation and translated at the closing rate.
Translation of transactions in foreign subsidiaries
Profit or loss transactions in foreign subsidiaries are translated to the presentation currency using the average exchange rate for the reporting month, unless exchange rates in the period have fluctuated significantly, in which case the exchange rates in effect on the transaction dates are applied. Assets and liabilities of foreign subsidiaries are translated at the exchange rate at the end of the reporting period.
Transactions in foreign currencies
Foreign currency transactions are translated using the exchange rate at the time of the transaction. Receivables, debt and other monetary items in foreign currency are measured at the exchange rate at the end of the reporting period, and the translation differences are recognised in profit or loss. Other assets in foreign currencies are translated at the exchange rate in effect on the transaction date.
Financial instruments - initial and subsequent measurement
Financial assets
The Group\u00b4s financial assets are derivatives, non-listed equity instruments, trade receivables and cash and cash equivalents.
The classification of financial assets at initial recognition depends on the financial asset\u2019s contractual cash flow characteristics and the Group\u2019s business model for managing them. Except for trade receivables that do not contain a significant financing component, the Group initially measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs.
The Group classified its financial assets into 2 categories: financial assets at amortised cost and financial asset at fair value through profit and loss. The Group does not apply hedge accounting.
Derivatives at fair value through profit and loss
Financial assets at fair value through profit and loss include financial assets held for trading, financial assets designated through profit or loss, or financial assets mandatorily required to be measured at fair value. Financial assets are classified as held for trading if they are acquired for the purpose of selling or repurchasing in the near terms. Derivatives, including embedded derivatives, are also classified as held for trading.
The category includes derivatives instruments such as foreign exchange contracts, interest rate swaps and salmon derivatives. The Group trades in salmon derivatives, both as an operational hedging activity and a financial activity. Operational trading of salmon derivatives is presented as other operating income, while financial trading of salmon derivatives is presented as other financial items.
Financial liabilities
Financial liabilities are classified, at initial recognition, as loans and borrowings, payables, or as financial liabilities at fair value through profit and loss (derivatives), as appropriate. Financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs.
Derivatives are financial liabilities when the fair value is negative, accounted for as derivatives as assets.
Financial liabilities that arise from supplier finance arrangement are classified within Trade payables in the statement of financial position if they have a similar nature and function to trade payables. This is the case if the supplier finance arrangement is part of the working capital used in the normal operating cycle,\u00a0 and the terms of the liabilities that are part of the supply chain finance arrangement are not substantially different from the terms of trade payables that are not part of the arrangement. Cash flows related to liabilities arising from supplier finance arrangements that are classified in Trade payables in the statement of financial position are included in operating activities in the statement of cash flow.
Financial assets
The Group\u00b4s financial assets are derivatives, non-listed equity instruments, trade receivables and cash and cash equivalents.
The classification of financial assets at initial recognition depends on the financial asset\u2019s contractual cash flow characteristics and the Group\u2019s business model for managing them. Except for trade receivables that do not contain a significant financing component, the Group initially measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs.
The Group classified its financial assets into 2 categories: financial assets at amortised cost and financial asset at fair value through profit and loss. The Group does not apply hedge accounting.
Derivatives at fair value through profit and loss
Financial assets at fair value through profit and loss include financial assets held for trading, financial assets designated through profit or loss, or financial assets mandatorily required to be measured at fair value. Financial assets are classified as held for trading if they are acquired for the purpose of selling or repurchasing in the near terms. Derivatives, including embedded derivatives, are also classified as held for trading.
Derivatives at fair value through profit and loss
Financial assets at fair value through profit and loss include financial assets held for trading, financial assets designated through profit or loss, or financial assets mandatorily required to be measured at fair value. Financial assets are classified as held for trading if they are acquired for the purpose of selling or repurchasing in the near terms. Derivatives, including embedded derivatives, are also classified as held for trading.
Derivatives at fair value through profit and loss
Financial assets at fair value through profit and loss include financial assets held for trading, financial assets designated through profit or loss, or financial assets mandatorily required to be measured at fair value. Financial assets are classified as held for trading if they are acquired for the purpose of selling or repurchasing in the near terms. Derivatives, including embedded derivatives, are also classified as held for trading.
Financial liabilities
Financial liabilities are classified, at initial recognition, as loans and borrowings, payables, or as financial liabilities at fair value through profit and loss (derivatives), as appropriate. Financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs.
Derivatives are financial liabilities when the fair value is negative, accounted for as derivatives as assets.
Financial liabilities that arise from supplier finance arrangement are classified within Trade payables in the statement of financial position if they have a similar nature and function to trade payables. This is the case if the supplier finance arrangement is part of the working capital used in the normal operating cycle,\u00a0 and the terms of the liabilities that are part of the supply chain finance arrangement are not substantially different from the terms of trade payables that are not part of the arrangement. Cash flows related to liabilities arising from supplier finance arrangements that are classified in Trade payables in the statement of financial position are included in operating activities in the statement of cash flow.
Revenue
Revenue from contracts with customers is recognised when control of the goods are transferred to the customer at an amount that reflects the consideration to which the Group expects to be entitled in exchange for those goods. The Group has generally concluded that it is the principal in its revenue arrangements, because it typically controls the goods before transferring them to the customer.
Sale of fish products
Revenue for the Group derives mainly from the sale of fish and elaborated fish products either on spot sales or from contracts. The Group recognises revenue from the sale of fish and elaborated fish products at the point in time when control of the goods is transferred to the customer. Revenue is generally recognised on delivery of the goods (i.e. a certain point in time). Based on group business of sale of fish and elaborated fish products the customers do not pay any advances. The normal credit term is 30 days upon delivery, and based on the nature of the product there is generally no right of return or warranties. Refund is only given if delivered goods is damaged or delivered with discrepancy compared to agreement, such is immaterial.
The Group considers whether there are other promises in the contract that are separate performance obligations to which a portion of the transaction price needs to be allocated, currently no multiple performance obligations have been identified. In determining the transaction price for the sale of goods, the Group considers the effects of variable consideration, the existence of significant financing components and consideration payable to
the customer (if any). At the balance sheet date the group has no outstanding performance obligations in contracts that have original duration of more than 1 year.
Biomass
Goodwill and licenses
Goodwill
Goodwill is initially measured at cost, and is the excess of the aggregate of the consideration transferred and the amount recognised for a non-controlling interest in the net identifiable assets acquired and liabilities assumed through a business combination.
After initial recognition, goodwill is measured at cost less any accumulated impairment losses. For the purpose of impairment testing, goodwill acquired in a business combination is, from the acquisition date, allocated to each of the Group\u2019s cash-generating units (CGU) that are expected to benefit from the combination, irrespective of whether other assets or liabilities of the acquiree are assigned to those units.
Where goodwill has been allocated to a CGU and part of the operation within that unit is disposed of, the goodwill associated with the disposed operation is included in the carrying amount of the operation when determining the gain or loss on disposal. Goodwill disposed of in such circumstance is measured on the basis of the relative values of the disposed operation and the portion of the cash-generating unit retained. Goodwill is tested for impairment annually as at December 31, and when circumstances otherwise indicate that the carrying value may be impaired. Impairment is determined for goodwill by assessing the recoverable amount of each CGU (or group of CGUs) to which the goodwill relates. When the recoverable amount of the CGU is less than its carrying amount, an impairment loss is recognised. Impairment losses relating to goodwill cannot be reversed in future periods.
Other intangible assets (licenses)
Intangible assets acquired separately are measured on initial recognition at cost. The cost of intangible assets acquired in a business combination is their fair value at the date of acquisition. Following initial recognition, intangible assets are carried at cost less any accumulated amortisation and accumulated impairment losses. The useful lives of intangible assets are assessed as either finite or
indefinite. The value of licenses acquired by Mowi (mainly licenses for salmon farming) in Norway, Chile, Ireland, the Faroe Islands, Scotland, Canada, and Iceland are considered indefinite. Intangible assets with indefinite useful lives are not amortised, but are tested for impairment annually or when circumstances otherwise indicate that the carrying value may be impaired at the cash-generating unit level. The indefinite life classification is reviewed annually to determine whether it continues to be appropriate. If not, the change in useful life from indefinite to finite is made on a prospective basis.
Goodwill
Goodwill is initially measured at cost, and is the excess of the aggregate of the consideration transferred and the amount recognised for a non-controlling interest in the net identifiable assets acquired and liabilities assumed through a business combination.
After initial recognition, goodwill is measured at cost less any accumulated impairment losses. For the purpose of impairment testing, goodwill acquired in a business combination is, from the acquisition date, allocated to each of the Group\u2019s cash-generating units (CGU) that are expected to benefit from the combination, irrespective of whether other assets or liabilities of the acquiree are assigned to those units.
Where goodwill has been allocated to a CGU and part of the operation within that unit is disposed of, the goodwill associated with the disposed operation is included in the carrying amount of the operation when determining the gain or loss on disposal. Goodwill disposed of in such circumstance is measured on the basis of the relative values of the disposed operation and the portion of the cash-generating unit retained. Goodwill is tested for impairment annually as at December 31, and when circumstances otherwise indicate that the carrying value may be impaired. Impairment is determined for goodwill by assessing the recoverable amount of each CGU (or group of CGUs) to which the goodwill relates. When the recoverable amount of the CGU is less than its carrying amount, an impairment loss is recognised. Impairment losses relating to goodwill cannot be reversed in future periods.
Other intangible assets (licenses)
Intangible assets acquired separately are measured on initial recognition at cost. The cost of intangible assets acquired in a business combination is their fair value at the date of acquisition. Following initial recognition, intangible assets are carried at cost less any accumulated amortisation and accumulated impairment losses. The useful lives of intangible assets are assessed as either finite or
indefinite. The value of licenses acquired by Mowi (mainly licenses for salmon farming) in Norway, Chile, Ireland, the Faroe Islands, Scotland, Canada, and Iceland are considered indefinite. Intangible assets with indefinite useful lives are not amortised, but are tested for impairment annually or when circumstances otherwise indicate that the carrying value may be impaired at the cash-generating unit level. The indefinite life classification is reviewed annually to determine whether it continues to be appropriate. If not, the change in useful life from indefinite to finite is made on a prospective basis.
Property, plant and equipment
Property, plant and equipment are measured at acquisition cost less accumulated depreciation and any impairment. Costs associated with normal maintenance and repairs are expensed as incurred. Costs of major replacements and renewals that substantially extend the economic life and functionality of the asset are capitalised. Assets are normally considered property, plant and equipment if the useful economic life exceeds one year. Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset form part of the cost of that asset. Straight-line depreciation is applied over the useful life of property, plant and equipment, based on the asset\u2019s historical cost and estimated residual value at disposal. If a substantial part of an asset has an individual and different useful life, this part is depreciated separately. The asset\u2019s residual value and useful life are evaluated annually. The gain or loss arising from the disposal or retirement of an asset is determined as the difference between the sales proceeds and the carrying amount of the asset.
Impairment of Non-current assets
Upon indication, each cash generating unit, CGU, is tested for impairment. If the recoverable amount of a cash-generating unit is estimated to be less than the carrying amount of the net assets of the cash-generating unit, impairment to the recoverable amount is recognised. If impairment is required, goodwill is written down first, thereafter other intangible assets. If further impairment is required, other assets will be written down on a pro-rata basis.
Impairment losses recognised in previous periods are reversed if the recoverable amount in a later period exceeds the carrying amount. The reversal will not exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognised for the asset in prior years.
Impairment of Non-current assets
Upon indication, each cash generating unit, CGU, is tested for impairment. If the recoverable amount of a cash-generating unit is estimated to be less than the carrying amount of the net assets of the cash-generating unit, impairment to the recoverable amount is recognised. If impairment is required, goodwill is written down first, thereafter other intangible assets. If further impairment is required, other assets will be written down on a pro-rata basis.
Impairment losses recognised in previous periods are reversed if the recoverable amount in a later period exceeds the carrying amount. The reversal will not exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognised for the asset in prior years.
Leasing
The determination of whether a contract is, or contains, a lease is assessed at the inception of the lease and is based on whether the contract conveys a right to control the use of an identified asset or assets for a period of time in exchange for consideration. For contracts where the Group is the lessee, right-of-use assets and lease liabilities are recognised at the commencement of the lease.
Right-of-use assets are measured at cost, less accumulated depreciation and impairment losses. Right-of-use assets are depreciated over the shorter of the lease term and the useful life of the asset. When a purchase option has been included in the cost at recognition, the right-of-use asset is depreciated over the estimated useful life of the asset.
The lease liabilities at commencement date is measured at the present value of the lease payments. The lease payments are discounted using the Group's incremental borrowing rate as the interest rate implicit in the lease is not readily determinable. The incremental borrowing rate for each business unit is based on SOFR with an addition of a country specific margin reflecting the interest the group would have had to pay to borrow the funds to purchase a similar asset in a similar economic environment .
\u00a0
Short term leases (lease term less than 12 months) and leases of low-value assets are not recognised as right-of-use assets and lease liabilities, as the recognition exemptions for these leases is applied. Lease payments of such leases are recognised as expense over the lease term.
For leasing contracts with optional renewal period, and where we are reasonably certain to exercise this option, the renewal periods are included in the calculation of the lease liability and asset.
Inventory
Inventories mainly comprise feed, goods in progress, packaging materials and finished goods. Inventories of goods are measured at the lower of cost and net realisable value.\u00a0\u00a0\u00a0\u00a0
The cost of finished goods includes direct material costs, direct personnel expenses and indirect processing costs (full production cost). Interest costs are not included in the inventory value. The cost price of purchased goods is the actual purchase price. The cost is based on the principle of first-in first-out, except for feed and value-added-products, where a weighted average is used.
If fish farmed by the Group is included in inventory as a raw material for further processing in one of the Group's processing entities, such fish is included in inventory at fair value less cost to sell at harvest.
Biological assets
Fair value of biological assets is calculated based on a present value model which does not rely on historical cost. Fish ready for harvest (mature fish), are valued at expected sales price with a deduction of cost related to harvest, transport etc. For fish not ready for harvest (immature fish), cost to completion is also deducted. The model uses an interpolation methodology where the known data points are the value of the fish when put to sea and when recognised as mature fish. Technically, the interpolation is calculated per location. The effect of this is that fish that have the same weight and quality are valued similarly. The interpolation model has a natural interpretation in the form of a present value calculation where an imputed rent of assets (i.e. theoretical license rent) per
location is included as part of the rate of return. Thus, the value is to a lesser degree affected by the site because low production cost at a high quality site is offset by a higher imputed rent and vice versa. All surplus return in the future is assigned to the licenses through a similarly high imputed rent of assets, and where any shortage in return is recognised in profit and loss immediately. The interpolation model is updated every month, with best estimates for time of harvest, remaining months at sea, expected price at time of harvest and estimated residual cost to grow the fish to harvest weight. The methodology has the effect that any changes in price will have full effect on the biomass at hand, while the price effect on increased weight going forward will be allocated to the license and recognised over time as remaining time at sea decreases. An effect of this is that even with high salmon prices there is no profit at the time the fish is put to sea because all surplus return is assigned to future periods (licenses). Correspondingly the fair value of small fish is rather insensitive to price fluctuations.
An interpolation model as described works best if important variables such as pace of growth, mortality and feed conversion ratios are constant per unit of time or weight increase. Experience shows that in particular there is a deviation from an even development during the first period in sea relating to increased value due, among other things to reduced risk after handling of the fish, vaccination and mortality related to the transfer to sea. This has been adjusted for.
Biological assets comprise eggs, juveniles, smolt and fish in the sea. Biological assets are, in accordance with IAS 41 and IFRS 13, measured at fair value less cost to sell. In line with IFRS 13, the highest and best use of the biological assets is applied for the valuation. In accordance with the principle for highest and best use, the fish is considered to have optimal harvest weight at 4 kg gutted. This corresponds to that a live weight of approximately 4.8 kg (there may be regional variances) or more are classified as mature fish, while fish that have still not achieved this weight are classified as immature fish. All fish at sea are subject to a fair value calculation, while broodstock and smolt are measured at cost less impairment losses.\u00a0
The calculation of the estimated fair value is based on market prices for harvested fish and adjusted for estimated differences in accordance with IFRS 13. The prices are reduced for harvesting costs and freight costs to market, to arrive at a net value back to farm. The valuation reflects the expected quality grading and size distribution. The valuation is completed for each Business Unit and is based on the biomass in sea for each seawater site and the estimated market price in each market derived from the development in recent contracts as well as spot prices. Where reliable forward prices are available, those have been used. The change in estimated fair value is recognised in profit or loss based on measurement as of each period, and is classified separately. At harvest, the fair value adjustment is classified as fair value adjustment on harvested fish. In cases of incident based mortality, the fair value adjustment is classified as fair value adjustment on incident based mortality when occurring. Both are included in net fair value adjustment of biological assets in the statement of comprehensive income.
Onerous contracts
At each reporting date, management assesses if there are contracts in which the unavoidable costs of meeting the Group's obligations under the contract exceed the economic benefits expected to be received in accordance with IAS 37. Fair value adjustment of biological assets is included in the unavoidable cost. This implies that the contract may be considered onerous even though the actual production cost of the products sold is lower than the contract price. Volumes used in the calculation is based on estimated remaining volumes for the contracts. Onerous contracts are classified as provisions in the statement of financial position.
Restructuring cost
Provisions for restructuring costs will be recognised if the Company has, within the reporting period, published or initiated a restructuring plan, which identifies which parts of the Company and approximately how many employees will be affected, the actions that will be taken and when the plan will be implemented. Provisions are recognised only for costs that cannot be associated with future earnings. Costs related to restructuring are presented on a separate line in the statement of comprehensive income.
Taxes
Income taxes comprise taxes on the taxable profit for the year, changes in deferred taxes and any adjustments in prior years' taxes. Taxes on transactions that are recorded in other comprehensive income or directly in equity do not form part of the tax expense in profit or loss and are recorded with the related transaction in other comprehensive income or directly in equity.
Tax payable is calculated using the nominal tax rate for the relevant tax jurisdiction at the end of the reporting period.
Deferred tax is calculated on the basis of temporary differences between accounting and taxation values at the close of the accounting year. Deferred tax assets arise from temporary differences that give rise to future tax deductions. Deferred tax assets are recognised to the extent that it is probable that a taxable profit will arise, against which the deductible temporary differences, and the carry forward of unused tax credits and unused tax losses, can be utilised.
Tax increasing and tax decreasing temporary differences are offset against each other to the extent that the taxes can be netted within one tax regime.
Taxes
Deferred tax is calculated on the basis of temporary differences between accounting and taxation values at the close of the accounting year. Deferred tax assets arise from temporary differences that give rise to future tax deductions. Deferred tax assets are recognised to the extent that it is probable that a taxable profit will arise, against which the deductible temporary differences, and the carry forward of unused tax credits and unused tax losses, can be utilised.
Share option schemes
The Group has share option schemes from 2021, 2022, 2023, and 2024 which will be settled in shares (equity settlement). The cost of equity-settled transactions is recognised as a payroll expense over the vesting period. The cumulative expense is recognised in other equity reserves within equity.
Cash flow statement and cash
Cash flow statement and cash
Estimates
The preparation of financial statements in accordance with IFRS requires management to make accounting estimates and judgments that affect the recognised amounts of assets and liabilities, income and expenses. The estimates and underlying assumptions are based on past experience and information perceived to be relevant and probable when the judgments are made. Estimates are reviewed on an on-going basis and actual values and results may deviate from these estimates. Adjustments to accounting estimates are recognised in the period in which the estimates are revised.
Mowi is exposed to a number of underlying economic factors which affect the overall results, such as salmon prices, foreign exchange rates and interest rates, as well as financial instruments with fair values derived from changes in these factors.
The matters described below are considered to be the most important in understanding the key sources of estimation uncertainty that are involved in preparing these consolidated financial statements and the uncertainties that could most significantly impact the amounts reported on the result of operations, financial position and cash flows.
Intangible assets - goodwill and farming licenses
The annual impairment test on intangible assets is based on a discounted cash flow model per cash-generating unit (CGU). The cash flows used in the calculations represent management\u2019s best estimate at the time of reporting. The assumptions used rest on uncertainty with regard to product prices, input prices, biological performance and future regulatory frameworks. Costs can normally be estimated with a higher degree of accuracy than income.
As profitability in the salmon farming industry historically has been very volatile, depending on developments in the price of salmon, Mowi uses budgets and long-term plans for the analysis.
The WACC model is used for estimating the discount rate. The input data for the model is updated every year for the annual impairment test. The choice of input data for the model significantly influences the outcome of the model, and to ensure that there is as little uncertainty as possible with regards to the calculation of the WACC, third-party sources are used where available (interest, inflation, beta). The WACC is calculated separately for the different CGUs. Indications of impairment that initiate testing beyond the year-end test include a significant reduction in the profitability of the CGU
compared to previous periods, negative deviations from budgets, changes in the use of assets, market changes and regulatory changes.
For further information about uncertainty in the valuation of intangible assets and impairment testing, please see Note 8, Impairment testing. Note 9, Intangible assets, illustrates the specification of intangible assets in the Group.
Biological assets
Biological assets comprise eggs, juveniles, smolt and fish in the sea. These assets are measured at fair value less cost to sell, unless the fair value cannot be measured reliably. The estimation of the fair value relies on a series of uncertain assumptions, e.g., biomass volume, biomass quality, size distribution, market prices, expected future costs, remaining time to harvest and total time to harvest.
Mowi measures all deviations in biomass volume compared to estimates when a site is harvested out. Except for situations where there has been an incident causing mass mortality, particularly early in the cycle, combined with an inability to count and weigh fish after the event in fear of further stressing the fish, volume deviations are normally minor. Similarly, excluding the effects of soft flesh and melanin, the quality of the fish can normally be estimated with a relatively high degree of accuracy. Categorisation of quality is normally set per country based on averages, but can be set individually per site when needed. The size distribution shows some degree of variation but normally not to an extent that significantly changes the estimated value of the biomass (the value of two fish at five kg is very similar to the value of two fish weighing four and six kg, respectively).
The accumulated cost of the fish per kg will only deviate from the estimate if the volume is different from the estimate. For the estimation of future costs, there is uncertainty with regard to feed prices, other input costs and biological development. Mowi measures cost deviations vs. budget as part of the follow up of business units. Excluding special situations (incidents etc.), the deviations in costs vs budgets are normally limited for a group of sites, although individual sites might show deviations. The estimation of costs influences the biomass value through the recognised fair value adjustment in the statements of comprehensive income and financial position (calculated as fair value less accumulated biological costs).
The key element in the estimation of fair value is the assumed market price. The assumed market price is the price that we expect to receive on the future date when the live fish is harvested. We derive these prices from a variety of sources, normally a combination of the prices achieved in the previous month and the contracts most recently entered into. For salmon of Norwegian, Scottish, Icelandic and Faroese origin, quoted forward prices (Nasdaq) are normally used in the estimation, see Note 2. The use of third-party forward prices improves the reliability and comparability of the price estimation.
For further information about biological asset values please see Note 6, Biological assets.
Judgments
The matters described below are considered to be the most important in understanding the key sources of judgments that are involved in preparing these consolidated financial statements and the uncertainties that could most significantly impact the amounts reported on the result of operations, financial position and cash flows.
Licenses
The Group has assessed that all fish farming licenses have indefinite lives and, as such, are not amortised. Most of the jurisdictions in which the Group operates require us to obtain a license for each fish farm owned and operated in that jurisdiction. The Group has obtained and currently holds a license to own and operate each of our fish farms where a license is required. These licenses have indefinite lives or require renewal after a specific time period, but normally with automatic renewal and, as such, we have assessed that they have indefinite lives. However, the Group\u2019s licenses in each country are subject to certain requirements, and we risk penalties (including, in some cases, criminal charges), sanctions or even license revocation if we fail to comply with license requirements or related regulations. Also, local government may change the way licenses are renewed.
Supply chain financing
Two companies in the Group hold Supply Chain Finance (SCF) agreements meaning that some vendors will indirectly offer extended credit terms to the company through a separate agreement with a financial institution. The vendors sell their trade receivables to the financial institution in order to receive payment immediately. Payment terms under the SCF agreement are in line with industry practice. The transaction is still between the company and its suppliers, and the company does not waive the right to claim any refund on quality issues, return goods etc. towards the supplier.
The refinancing by vendors has no cash-flow impact on the company, and only when the trade payable is settled with the bank will the cash flow statement be impacted, with a operating cash flow charge. The group's assessment is that the liabilities under these SCF agreements are presented as trade payables. Please refer to note 18 for further information.
Note 3B - Environmental risk
Climate change represents both risks and opportunities for Mowi. We recognise the growing significance of climate change on our business and the increasing role of producing food from the ocean as a solution to climate change. Mowi has developed a sustainability strategy, the Leading the Blue Revolution Plan. It sets ambitious goals to ensure our salmon is raised in the ocean in harmony with nature, using an eco-efficient value chain while offering solutions to global challenges such as climate change and food security.
Climate change has been identified as an operational, strategic, reporting and compliance risk to Mowi which can potentially impact our business in the short, medium, and long term. Mowi follows the COSO (Committee of Sponsoring Organisations) enterprise risk framework to assess and identify risks, including climate change risks. The risk of climate change on Mowi's financial position can be classified into two types of risks; physical risk and transition risk. Physical risks are related to the increase and severity of extreme weather and long-term environmental changes. The physical related climate risks relate mainly to extreme weather events and increased seawater temperatures which can impact the risk of escape incidents, the frequency of algae blooms, and the availability of the raw materials for our fish feed (medium to long term impact). Transition risks refer to the changes in technological advancements within clean energy, shifts in consumer behaviour and political interventions, such as restrictions and costs related to emissions etc. The transition risks and opportunities include legislation or regulations imposing overall caps or taxes on greenhouse gas
emissions (short-medium term impact). An increased recognition of seafood as a low carbon footprint protein is a transitional opportunity for Mowi.
These risks can affect Mowi in multiple ways, such as winters storms or El Ni\u00f1o giving tougher conditions, an increase of algae blooms and jelly fish due to increased water temperature can reduce quality and cause mortality on fish reducing revenue, or result in increased operating expenses with increased level of maintenance on nets and pens with tougher climate and expenses based on access to raw material in our fish feed, additional expenses for taxes with new regulation, or expenses to adapt our way of business to changed expectations from stakeholders. The changes, however, can also provide opportunities with faster growing fish in higher sea temperatures and increased revenues as well on the uptake of new technology. The risk can also impact the carrying amount and useful life of both tangible and intangible assets as weather tear or regulation might require earlier replacements.
Assumptions used for determining fair value of live fish
The estimated fair value of the biomass will always be based on uncertain assumptions, even though the group has built substantial expertise in assessing these factors. Estimates are applied to the following factors; biomass volume, the quality of the biomass, size distribution, cost, mortality and market prices.
Biomass volume: The biomass volume is in itself an estimate based on the number of smolt released into the sea, the estimated growth from the time of stocking, estimated mortality based on observed mortality in the period, etc. There is normally little uncertainty with regard to biomass volume.
The level of uncertainty will, however, be higher if an incident has resulted in mass mortality, especially early in the cycle, or if the fish's health status restricts handling. If the total biomass at sea was 1%
lower than our estimates, this would result in an change in value of EUR -7.5 million.
The quality of the biomass: The quality of the biomass can be difficult to assess prior to harvesting, if the reason for downgrading is related to muscle quality (e.g. the effect of Kudoa in Canada). In Norway downgraded fish is normally priced according to standard rates of deduction compared to a Superior quality fish. In our fair value model for salmon of Norwegian origin, we have used EUR 2.00 as deduction from Superior to Production grade quality. In other countries the price deductions related to quality are not as standardised. Due to the challenging winter sore situation in Norway in the first half, group superior rate was 87% in 2024 (88% in 2023). A one percentage point change from Superior quality to Production grade quality would result in a change in value of EUR -5.7 million.
The size distribution: Fish in sea grow at different rates, and even in a situation with good estimates for the average weight of the fish there can be a considerable spread in the quality and weight of the fish. The size distribution affects the price achieved for the fish, as each size category of fish is priced separately in the market. When estimating the biomass value, a normal size distribution is applied.
Cost: For the estimation of future costs, there is uncertainty with regard to feed prices, other input costs and biological development. Mowi measures cost deviations vs. budget as part of the follow up of business units. Excluding special situations (incidents etc.), the deviations in costs vs budgets are normally limited for a group of sites, although individual sites might show deviations. The estimation of costs influences the biomass value through the recognised fair value adjustment in the statements of comprehensive income and financial position (calculated as fair value less accumulated biological costs).
Mortality: Normalised mortality will affect the fair value estimates both as a reduction of estimated harvesting volumes and because cost to completion includes cost incurred on fish that eventually will perish.
Market price: The market price assumption is very important for the valuation and even minor changes in the market price will result in significant changes in the valuation. The methodology used for establishing the market price is explained in Note 2. A EUR 0.1 decrease in the market price would result in a decrease in value of EUR 20.3 million.
The market price risk is reduced through fixed price/volume customer contracts and financial contracts, as well as our downstream integration as explained in Note 13.
Climate Risk : Climate risk is included in the assessment for calculating the Fair value of live fish. Due to the short time period relevant for the Fair value uplift (maximum of 2 years) climate risk has not had a material effect on the valuation of biomass in sea.
The key assumptions used in the calculation of value in use are harvested volume, EBIT(DA)/margins, capital expenditure, discount rates and the terminal growth rates. Please see the table below for a summary of the key assumptions for each CGU.
Harvest volume
The expected harvest volume is based on the fish currently being held at sea, forward stocking plan and adjusted for the expected future increase in production given today's licenses. This evaluation has been performed CGU by CGU and is updated yearly.
EBIT(DA)/Margins
The key profit target for salmon farming and sales is EBIT per kg, while value-added operations are measured in terms of EBIT/EBITDA in % of sales. EBIT per kg is highly volatile due to fluctuations in the price of salmon. Costs can under normal circumstances be forecast with a relatively high level of accuracy. As Mowi has entered into long-term sales contracts for a proportion of the volume to be harvested in 2025, the margin for 2025 can be forecasted with a higher level of accuracy than the margin for the years beyond (2026-2029). With regards to the terminal, an expected long-term EBIT pr. kg has been used in the Farming entities and an expected EBIT in % of sales has been used for
other operations. In the calculation we have used the EBIT margin from the Long Term Plan per entity, and reduced this to 90%. This principle has been applied in all Farming entities for the terminal value.
Capital expenditure
In the five-year forecast period, the capital expenditure necessary to meet the expected growth in revenue and profit is taken into consideration. Consistent with the Group\u2019s plan, the capital expenditure level for 2025 is high to further grow the operations. Beyond 2025, capital expenditures are aligned with growth and replacement plans. Capital expenditure to comply with current laws and regulations has been included. Capital expenditure related to committed and approved efficiency improvement programmes has also been included to support the inclusion of the benefits in the applied margin.
Changes in applicable laws and regulations may affect future estimated capital expenditure needs; this is not reflected in the figures used in the impairment test. Beyond the forecast period, capital expenditure will in general equal depreciation and relate to maintenance investments.
Discount rate
The discount rates are based on the Weighted Average Cost of Capital (WACC) methodology. The cost of equity is based on Capital Asset Pricing Model (CAPM). The cost of debt is based on the risk-free rate in the applicable country. In the model, a ten-year risk-free rate has been used. Calculation of the final discount rates (WACC) also takes into account market risk premium, debt risk premium, gearing and beta value. In the calculations, the Group has applied estimated cash flows before tax and the corresponding discount rates before tax.
Terminal growth rates
Growth after the five-year forecast period has in general been set independently for each cash-generating unit. The assessment includes historical views of inflation rates, growth compared to risk free rate as well as long term government inflation targets. The maximum growth rate applied beyond the forecast period is 2%. This is lower than the expected growth rates in the first five years and lower than the historic growth rate in salmon demand.
Impairment of licenses in CGU Farming Canada
In 2024, an impairment loss of EUR 54.2 million related to specific farming licenses and goodwill in British Columbia, Canada, was recognised. This is based on an updated assessment and the ongoing strategic review of the recent regulatory changes for fish farming in British Columbia, Canada, and the assumptions from the Long Term Plan have been adjusted accordingly. The main changes in the assumptions for Mowi Canada are estimated harvest volumes in the future periods and the corresponding negative effects on the cash flow projections. Following the recognition of the impairment loss, book value of our farming licenses in Canada is EUR 106.0 million, not related to British Columbia. The remaining book value of licenses in Mowi Canada is approximately 8.6% of the license value for the Group.
Sensitivity
With regard to the assessment of recoverable amount, the Group is of the view that no reasonably likely change in any of the above key assumptions would cause the carrying value to materially exceed the recoverable amount for any of the CGUs. With regards
to environmental changes, we have performed a sensitivity analysis, and the Group is in the view that likely climate changes will not materially change the outcome of the impairment test. Regarding climate risk, the Group has incorporated expected effects of climate change, inflation, wars, pandemics, nature risk and other external factors in the budget assumptions for 2025 and as part of the budgeting process for the long term plan for 2026-2029. For further information regarding environmental risk, references are made to Note 3B.
With regards to Canada, the imposition of 25% tariffs on goods imported from Canada to the US with effect from 2 April 2025 adds uncertainty. The situation is fluid and it is difficult to see how this will play out, including other countries. Mowi monitors developments and is prepared to redistribute volumes from our seven origins with respect to prevailing trade policies at any given time to best serve our customers.
The significant key assumptions with regards to sensitivity are expected harvest volumes and EBIT(DA)/Margins.
ASSUMPTIONS CASH GENERATING UNITS | HARVEST VOLUME 2024 (GWT) | WACC | TERMINAL | ||
BEFORE TAX | VALUE GROWTH % | ||||
2024 | 2023 | 2024 | 2023 | ||
Mowi Norway Farming | 303\u00a0501 | 10.5% | 10.9% | 2.0% | 2.0% |
Mowi Chile Farming | 72\u00a0694 | 13.5% | 12.9% | 2.0% | 2.0% |
Mowi Canada Farming | 30\u00a0426 | 12.3% | 11.7% | 2.0% | 2.0% |
Mowi Scotland Farming | 65\u00a0977 | 11.8% | 11.0% | 2.0% | 2.0% |
Mowi Ireland Farming | 8\u00a0887 | 10.8% | 9.8% | 2.0% | 2.0% |
Mowi Faroe Islands Farming | 9\u00a0378 | 10.8% | 8.7% | 2.0% | 2.0% |
Arctic Fish | 10\u00a0667 | 9.3% | 9.4% | 2.0% | 2.0% |
Mowi Consumer Products Europe | \u2014 | 10.0% | 10.0% | 2.0% | 2.0% |
Mowi Asia | \u2014 | 11.9% | 11.3% | 2.0% | 2.0% |
Mowi USA | \u2014 | 11.5% | 11.1% | 2.0% | 2.0% |
Mowi Feed | \u2014 | 9.5% | 10.3% | 2.0% | 2.0% |
Total | 501\u00a0530 |
For management purposes, Mowi is organised into three Business Areas: Feed, Farming and Sales & Marketing.
Business segments are components of a business that are regularly reviewed by its chief operating decision-makers for the purpose of assessing performance and allocating resources. The term business segments corresponds to operating segments as defined in IFRS 8. The Group Management Team is the Group\u2019s \"chief operating decision-maker\" (\"CODM\").
In Mowi the Feed Business Area consist of the feed factories in Norway and Scotland. Feed is considered to be a separate business segment due to the nature of the business (different economic characteristics (e.g similar long term average gross margin) compared to other business segments in the Group and separate management follow up).
The Farming Business Area consists of the farming and primary processing operations in Norway, Scotland, Canada, Chile, Ireland, the Faroe Islands and Iceland which are reported separately to CODM. The Farming operations are, due to similar production processes, a global market for both salmon feed and sales of salmon, in addition to similar biological risk factors, considered to
have similar economic characteristics (e.g similar long term average gross margin).
The Sales & Marketing Business Area consists of the Markets operations in the Americas and Europe, as well as Consumer Products. As the Markets operations (trading-related activities) are considered to have similar economic characteristics (e.g similar long term average gross margin), due to similar production processes and operational risk factors, and a common set of key performance indicators, they are presented as one reporting segment. Consumer Products, which comprises the value-added operations in Europe, Asia and America, is presented as a single separate reporting segment due to similar production processes, operational risk factors and a common set of key performance indicators (e.g similar long term average gross margin).
The business segments' performance is monitored in order to achieve the overall objective of maximising the operational EBIT per kg and margins. Consequently, reporting focuses on measuring and illustrating the overall profitability of the harvested volume, based on source of origin (operational EBIT per kg) and operational EBIT margin for the business segments Markets and Consumer Products. Legal entities with activities in both Farming and Sales
& Marketing do not split their financial items or their statement of financial position. The CAPEX in these entities are recognised in the business segment Farming.
The pricing principle between Feed and Farming is set at market terms and benchmarked against third parties. The pricing principle between Farming and Sales & Marketing is based on market reference prices for spot sales, while contracts are at market terms, with the target for Sales & Marketing to maximise profit beyond these terms.
The same accounting principles as described for the consolidated financial statements have been applied to the business segment reporting. Inter-segment transfers or transactions are entered into under normal commercial terms and conditions, and the measurements used in the business segment reporting are the same as those used for the third-party transactions.
In the business segment reporting, internal profit related to unrealised gains from intra-group transactions are included in Operational EBIT for the relevant business segments, but eliminated in EBIT.
Operational EBIT and Operational EBITDA are non-IFRS financial measures. Operational EBIT is calculated by excluding certain items, according to the reconciliation below, from earnings before financial items and taxes (EBIT). Operational EBITDA is calculated by adding depreciation and amortisation to Operational EBIT, however Operational EBITDA excludes the effects of IFRS 16. For further explanations, see section Analytical information in this report.
The sustainability reporting follows the same reporting structure as the financial reporting structure described above.
KEY BUSINESS SEGMENT FIGURES (EUR MILLION) | |||||||
2024 | FEED | FARMING | MARKETS | CONSUMER PRODUCTS | OTHER1) | ELIMINATIONS | TOTAL |
External revenue | 3.8 | 98.1 | 1\u00a0817.1 | 3\u00a0697.7 | \u2014 | \u2014 | 5\u00a0616.6 |
Internal revenue | 1\u00a0117.9 | 3\u00a0408.3 | 2\u00a0188.5 | 15.4 | 21.4 | -6\u00a0751.6 | \u2014 |
Operational revenue | 1\u00a0121.7 | 3\u00a0506.4 | 4\u00a0005.6 | 3\u00a0713.1 | 21.4 | -6\u00a0751.6 | 5\u00a0616.6 |
Derivatives and other items | \u2014 | 2.1 | -5.5 | -9.4 | \u2014 | \u2014 | -12.9 |
Revenue and other income | 1\u00a0121.7 | 3\u00a0508.5 | 4\u00a0000.1 | 3\u00a0703.6 | 21.4 | -6\u00a0751.6 | 5\u00a0603.8 |
Operational EBITDA | 62.2 | 601.8 | 207.2 | 171.7 | -12.9 | \u2014 | 1\u00a0030.1 |
Operational EBIT | 46.8 | 443.8 | 206.5 | 145.8 | -13.9 | \u2014 | 828.9 |
Change in unrealised internal margin | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | -3.2 | -3.2 |
Gain/loss from derivatives | \u2014 | 8.8 | -5.5 | -9.4 | -3.9 | \u2014 | -10.1 |
Net fair value adjustment biomass | \u2014 | 40.6 | \u2014 | \u2014 | \u2014 | \u2014 | 40.6 |
Onerous contract provisions | \u2014 | 27.6 | \u2014 | \u2014 | \u2014 | \u2014 | 27.6 |
Restructuring cost and other provisions | -13.8 | -1.2 | -4.6 | \u2014 | \u2014 | -19.5 | |
Production/license/sales taxes | \u2014 | -50.6 | \u2014 | \u2014 | \u2014 | \u2014 | -50.6 |
Other non-operational items | \u2014 | -7.5 | \u2014 | 5.6 | -16.6 | \u2014 | -18.4 |
Income from associated companies and joint ventures | \u2014 | 29.5 | \u2014 | \u2014 | \u2014 | \u2014 | 29.5 |
Impairment losses and write-downs | \u2014 | -66.4 | \u2014 | 0.2 | \u2014 | \u2014 | -66.2 |
EBIT | 46.8 | 412.0 | 199.8 | 137.6 | -34.4 | -3.2 | 758.6 |
Gross investments | 7.2 | 338.0 | 1.9 | 27.1 | \u2014 | \u2014 | 374.2 |
Number of FTEs 31.12 | 140 | 4\u00a0961 | 236 | 8\u00a0710 | 48 | \u2014 | 14\u00a0095 |
1) Corporate functions and holding companies are presented as \"Other\".
KEY BUSINESS SEGMENT FIGURES (EUR MILLION) | |||||||
2023 | FEED | FARMING | MARKETS | CONSUMER PRODUCTS | OTHER1) | ELIMINATIONS | TOTAL |
External revenue | 6.7 | 173.3 | 1\u00a0743.6 | 3\u00a0589.8 | \u2014 | \u2014 | 5\u00a0513.4 |
Internal revenue | 1\u00a0064.5 | 3\u00a0311.0 | 2\u00a0096.7 | 10.9 | 21.2 | -6\u00a0504.3 | \u2014 |
Operational revenue | 1\u00a0071.2 | 3\u00a0484.3 | 3\u00a0840.3 | 3\u00a0600.7 | 21.2 | -6\u00a0504.3 | 5\u00a0513.4 |
Derivatives and other items | \u2014 | -13.6 | -1.7 | 7.7 | \u2014 | \u2014 | -7.6 |
Revenue and other income | 1\u00a0071.2 | 3\u00a0470.7 | 3\u00a0838.6 | 3\u00a0608.3 | 21.2 | -6\u00a0504.4 | 5\u00a0505.7 |
Operational EBITDA | 52.1 | 830.1 | 170.9 | 179.3 | -11.4 | \u2014 | 1\u00a0221.0 |
Operational EBIT | 35.5 | 682.4 | 170.1 | 151.7 | -12.2 | \u2014 | 1\u00a0027.5 |
Change in unrealised internal margin | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | -0.9 | -0.9 |
Gain/loss from derivatives | \u2014 | -9.1 | -1.8 | 7.7 | 0.2 | \u2014 | -2.9 |
Net fair value adjustment biomass | \u2014 | 37.4 | \u2014 | \u2014 | \u2014 | \u2014 | 37.4 |
Onerous contract provisions | \u2014 | -18.3 | \u2014 | \u2014 | \u2014 | \u2014 | -18.3 |
Restructuring cost and other provisions | \u2014 | -4.3 | \u2014 | -0.5 | \u2014 | \u2014 | -4.9 |
Production/license/sales taxes | \u2014 | -45.2 | \u2014 | \u2014 | \u2014 | \u2014 | -45.2 |
Other non-operational items | \u2014 | -8.5 | \u2014 | -5.0 | -3.2 | \u2014 | -16.6 |
Income from associated companies and joint ventures | \u2014 | 28.4 | \u2014 | \u2014 | \u2014 | \u2014 | 28.4 |
Impairment losses and write-downs | \u2014 | -21.1 | \u2014 | -2.3 | \u2014 | \u2014 | -23.5 |
EBIT | 35.5 | 641.6 | 168.3 | 151.6 | -15.1 | -0.9 | 981.0 |
Gross investments | 4.0 | 360.8 | 0.4 | 29.6 | 1.5 | \u2014 | 396.3 |
Number of FTEs 31.12 | 153 | 5\u00a0090 | 241 | 8\u00a0611 | 48 | \u2014 | 14\u00a0142 |
1) Corporate functions and holding companies are presented as \"Other\".
NON-CURRENT ASSETS BY COUNTRY LOCATION (EUR MILLION) | 2024 | 2023 |
Norway | 2\u00a0264.3 | 2\u00a0106.1 |
Poland | 146.9 | 143.1 |
Scotland | 613.6 | 555.2 |
Iceland | 407.6 | 407.7 |
Belgium | 77.9 | 77.6 |
France | 42.9 | 46.8 |
Rest of Europe | 101.4 | 100.6 |
Chile | 296.3 | 285.0 |
Canada/USA | 392.5 | 449.7 |
Asia | 8.8 | 9.1 |
Non-current assets | 4\u00a0352.1 | 4\u00a0180.8 |
Other non-current assets1) | 90.4 | 78.7 |
Total non-current assets | 4\u00a0442.5 | 4\u00a0259.5 |
BUSINESS AREAS | Feed | Farming | Sales & Marketing | Total | |||||
(EUR million) | Note | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 |
Geographical markets | |||||||||
Europe | 3.4 | 4.4 | 44.5 | 141.4 | 3\u00a0858.6 | 3\u00a0768.5 | 3\u00a0906.5 | 3\u00a0914.3 | |
Americas | \u2014 | \u2014 | 22.8 | 10.5 | 1\u00a0080.6 | 1\u00a0039.6 | 1\u00a0103.4 | 1\u00a0050.1 | |
Asia | \u2014 | \u2014 | 1.2 | \u2014 | 512.4 | 462.8 | 513.7 | 462.8 | |
Rest of the world | \u2014 | \u2014 | \u2014 | \u2014 | 60.1 | 58.6 | 60.1 | 58.6 | |
Revenue from contracts with customers | 3.4 | 4.4 | 68.6 | 151.9 | 5\u00a0511.8 | 5\u00a0329.5 | 5\u00a0583.7 | 5\u00a0485.8 | |
Other income | 0.4 | 2.2 | 29.5 | 21.5 | 3.0 | 3.9 | 32.9 | 27.6 | |
Operational revenue | 4 | 3.8 | 6.7 | 98.1 | 173.4 | 5\u00a0514.8 | 5\u00a0333.4 | 5\u00a0616.6 | 5\u00a0513.4 |
Source of revenue
The main source of revenue for the Group is sales of Atlantic salmon, including elaborated products.
\u00a0
The business area Sales & Marketing represents the majority of the Group's external revenue. The revenue distribution for Sales & Marketing according to product categories was as follows in 2024 (2023): ready to eat 17% (18%),\u00a0 fresh prepacked 23% (22%) , fresh bulk 51% (50%) , frozen 4% (3%), other species 5% (6%). The revenue distribution for Sales & Marketing according to customer categories
was as follows in 2024 (2023): Retail 56% (54%), Distributors 21% (22%), Industry 11% (11%), Foodservice 8% (9%) and Smoke houses 4% (3%).
Revenue for the Farming business area includes other income as insurance income, government grants, rental income from sales of surplus primary processing capacity, as well as revenue from sales of fish, eggs, smolt and cleanerfish. Revenue from customers in the Business Area Feed is related to sales of feed to external parties.
BUSINESS AREAS | Feed | Farming | Sales & Marketing | Total | |||||
(EUR million) | Note | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 |
Geographical markets | |||||||||
Europe | 3.4 | 4.4 | 44.5 | 141.4 | 3\u00a0858.6 | 3\u00a0768.5 | 3\u00a0906.5 | 3\u00a0914.3 | |
Americas | \u2014 | \u2014 | 22.8 | 10.5 | 1\u00a0080.6 | 1\u00a0039.6 | 1\u00a0103.4 | 1\u00a0050.1 | |
Asia | \u2014 | \u2014 | 1.2 | \u2014 | 512.4 | 462.8 | 513.7 | 462.8 | |
Rest of the world | \u2014 | \u2014 | \u2014 | \u2014 | 60.1 | 58.6 | 60.1 | 58.6 | |
Revenue from contracts with customers | 3.4 | 4.4 | 68.6 | 151.9 | 5\u00a0511.8 | 5\u00a0329.5 | 5\u00a0583.7 | 5\u00a0485.8 | |
Other income | 0.4 | 2.2 | 29.5 | 21.5 | 3.0 | 3.9 | 32.9 | 27.6 | |
Operational revenue | 4 | 3.8 | 6.7 | 98.1 | 173.4 | 5\u00a0514.8 | 5\u00a0333.4 | 5\u00a0616.6 | 5\u00a0513.4 |
Source of revenue
The main source of revenue for the Group is sales of Atlantic salmon, including elaborated products.
\u00a0
The business area Sales & Marketing represents the majority of the Group's external revenue. The revenue distribution for Sales & Marketing according to product categories was as follows in 2024 (2023): ready to eat 17% (18%),\u00a0 fresh prepacked 23% (22%) , fresh bulk 51% (50%) , frozen 4% (3%), other species 5% (6%). The revenue distribution for Sales & Marketing according to customer categories
was as follows in 2024 (2023): Retail 56% (54%), Distributors 21% (22%), Industry 11% (11%), Foodservice 8% (9%) and Smoke houses 4% (3%).
Revenue for the Farming business area includes other income as insurance income, government grants, rental income from sales of surplus primary processing capacity, as well as revenue from sales of fish, eggs, smolt and cleanerfish. Revenue from customers in the Business Area Feed is related to sales of feed to external parties.
Valuation of biological assets
Biological assets are, in accordance with IAS 41, measured at fair value less cost to sell. All fish at sea are subject to a fair value calculation, while broodstock and smolt are measured at cost less impairment losses.
Biomass measured at fair value, is categorised at Level 3 in the fair value hierarchy, as the input is mostly unobservable. In line with IFRS 13, the highest and best use of the biological assets is applied for the valuation. In accordance with the principle for highest and best use, we consider that the fish have optimal harvest weight at 4 kg gutted. This corresponds to a live weight of approximately 4.8 kg (there may be regional variances). Fish of this weight or above are classified as ready for harvest (mature fish), while fish that have still not achieved this weight are classified as not ready for harvest (immature fish). The valuations are carried out at business unit level based on a common model and basis for assumptions established at group level. All assumptions are subject to monthly quality assurance and analysis at the group level.
The valuations are based on an income approach and takes into consideration unobservable input based on biomass in the sea, the estimated growth rate and cost to completion at site level. Mortality,
quality of the fish going forward and market price are considered at business unit level. A special assessment is performed for sites with high/low performance due to disease or other deviating factors. The market prices are derived from observable market prices where available.
Assumptions used for determining fair value of live fish
The estimated fair value of the biomass will always be based on uncertain assumptions, even though the group has built substantial expertise in assessing these factors. Estimates are applied to the following factors; biomass volume, the quality of the biomass, size distribution, cost, mortality and market prices.
Biomass volume: The biomass volume is in itself an estimate based on the number of smolt released into the sea, the estimated growth from the time of stocking, estimated mortality based on observed mortality in the period, etc. There is normally little uncertainty with regard to biomass volume.
The level of uncertainty will, however, be higher if an incident has resulted in mass mortality, especially early in the cycle, or if the fish's health status restricts handling. If the total biomass at sea was 1%
lower than our estimates, this would result in an change in value of EUR -7.5 million.
The quality of the biomass: The quality of the biomass can be difficult to assess prior to harvesting, if the reason for downgrading is related to muscle quality (e.g. the effect of Kudoa in Canada). In Norway downgraded fish is normally priced according to standard rates of deduction compared to a Superior quality fish. In our fair value model for salmon of Norwegian origin, we have used EUR 2.00 as deduction from Superior to Production grade quality. In other countries the price deductions related to quality are not as standardised. Due to the challenging winter sore situation in Norway in the first half, group superior rate was 87% in 2024 (88% in 2023). A one percentage point change from Superior quality to Production grade quality would result in a change in value of EUR -5.7 million.
The size distribution: Fish in sea grow at different rates, and even in a situation with good estimates for the average weight of the fish there can be a considerable spread in the quality and weight of the fish. The size distribution affects the price achieved for the fish, as each size category of fish is priced separately in the market. When estimating the biomass value, a normal size distribution is applied.
Cost: For the estimation of future costs, there is uncertainty with regard to feed prices, other input costs and biological development. Mowi measures cost deviations vs. budget as part of the follow up of business units. Excluding special situations (incidents etc.), the deviations in costs vs budgets are normally limited for a group of sites, although individual sites might show deviations. The estimation of costs influences the biomass value through the recognised fair value adjustment in the statements of comprehensive income and financial position (calculated as fair value less accumulated biological costs).
Mortality: Normalised mortality will affect the fair value estimates both as a reduction of estimated harvesting volumes and because cost to completion includes cost incurred on fish that eventually will perish.
Market price: The market price assumption is very important for the valuation and even minor changes in the market price will result in significant changes in the valuation. The methodology used for establishing the market price is explained in Note 2. A EUR 0.1 decrease in the market price would result in a decrease in value of EUR 20.3 million.
The market price risk is reduced through fixed price/volume customer contracts and financial contracts, as well as our downstream integration as explained in Note 13.
Climate Risk : Climate risk is included in the assessment for calculating the Fair value of live fish. Due to the short time period relevant for the Fair value uplift (maximum of 2 years) climate risk has not had a material effect on the valuation of biomass in sea.
Write-down of biomass and incident-based mortality
Incident-based mortality is accounted for when a site either experiences elevated mortality over time or substantial mortality due to an incident at the farm (outbreak of disease, lack of oxygen etc). The cost of incident based mortality is included in \u201ccost of materials\u201d in the statement of comprehensive income. The fair value element is adjusted through fair value adjustment on incident based mortality, and included in net fair value adjustment in the statement of comprehensive income.
RECONCILIATION OF CHANGES IN THE CARRYING AMOUNT OF BIOLOGICAL ASSETS (EUR MILLION) | 2024 | 2023 |
Carrying amount as of 01.01 | 2\u00a0143.6 | 1\u00a0912.5 |
Cost to stock | 2\u00a0674.2 | 2\u00a0570.5 |
Net fair value adjustment | 40.6 | 37.4 |
Mortality for fish in sea | -104.0 | -97.4 |
Cost of harvested fish expensed | -2\u00a0468.0 | -2\u00a0265.7 |
Write-downs | -5.4 | -15.6 |
Effects of business combinations | \u2014 | 13.7 |
Currency translation differences | 28.7 | -12.0 |
Total carrying amount of biological assets as of 31.12 | 2\u00a0309.6 | 2\u00a0143.6 |
FAIR VALUE ADJUSTMENT ON BIOLOGICAL ASSETS IN THE STATEMENT OF FINANCIAL POSITION (EUR MILLION) | 2024 | 2023 |
Mowi Norway | 331.2 | 354.6 |
Mowi Chile | 35.2 | 25.6 |
Mowi Canada | 38.6 | 24.9 |
Mowi Scotland | 84.7 | 57.2 |
Mowi Faroe Islands | 25.3 | 13.5 |
Mowi Ireland | 5.8 | 3.2 |
Arctic Fish | 18.8 | 14.8 |
Total fair value adjustment included in carrying amount in the statement of financial position | 539.6 | 493.9 |
Biomass at cost | 1\u00a0770.0 | 1\u00a0649.7 |
Total biological assets | 2\u00a0309.6 | 2\u00a0143.6 |
FAIR VALUE ADJUSTMENT ON BIOLOGICAL ASSETS IN THE STATEMENT OF COMPREHENSIVE INCOME (EUR MILLION) | 2024 | 2023 |
Mowi Norway | 550.7 | 672.4 |
Mowi Chile | 94.2 | 97.1 |
Mowi Canada | 40.5 | 44.2 |
Mowi Scotland | 122.9 | 74.2 |
Mowi Faroe Islands | 33.7 | 17.1 |
Mowi Ireland | 15.6 | 6.1 |
Arctic Fish | 21.3 | 14.5 |
Total fair value adjustment in the statement of comprehensive income | 878.9 | 925.6 |
FAIR VALUE ADJUSTMENT ON HARVESTED FISH IN THE STATEMENT OF COMPREHENSIVE INCOME (EUR MILLION) | 2024 | 2023 |
Mowi Norway | -558.7 | -611.3 |
Mowi Chile | -85.8 | -117.5 |
Mowi Canada | -24.2 | -44.1 |
Mowi Scotland | -96.8 | -67.3 |
Mowi Faroe Islands | -21.6 | -12.5 |
Mowi Ireland | -11.9 | -3.1 |
Arctic Fish | -17.3 | -14.9 |
Total fair value uplift in the statement of comprehensive income | -816.4 | -870.8 |
FAIR VALUE ADJUSTMENT ON INCIDENT BASED MORTALITY IN THE STATEMENT OF COMPREHENSIVE INCOME (EUR MILLION) | 2024 | 2023 |
Mowi Norway | -15.4 | -11.9 |
Mowi Chile | -0.8 | -0.8 |
Mowi Canada | -2.2 | -1.6 |
Mowi Scotland | -2.1 | -3.1 |
Mowi Faroe Islands | -0.3 | \u2014 |
Mowi Ireland | -1.1 | \u2014 |
Arctic Fish | \u2014 | \u2014 |
Total fair value uplift in the statement of comprehensive income | -21.9 | -17.4 |
NET FAIR VALUE ADJUSTMENT IN THE STATEMENT OF COMPREHENSIVE INCOME (EUR MILLION) | 2024 | 2023 |
Mowi Norway | -23.4 | 49.2 |
Mowi Chile | 7.5 | -21.2 |
Mowi Canada | 14.2 | -1.5 |
Mowi Scotland | 24.0 | 3.8 |
Mowi Faroe Islands | 11.8 | 4.6 |
Mowi Ireland | 2.6 | 3.0 |
Arctic Fish | 3.9 | -0.4 |
Total fair value uplift in the statement of comprehensive income | 40.6 | 37.4 |
VOLUMES OF BIOMASS (TONNES) | 2024 | 2023 |
Volume of biomass harvested during the year (gutted weight) | 501\u00a0530 | 474\u00a0664 |
Volume of biomass in the sea at year-end (live weight) | 341\u00a0844 | 311\u00a0707 |
SENSITIVITY EFFECT ON FAIR VALUE (SALMON ONLY) AT YEAR-END (EUR MILLION) | PRICE -0.1 EUR | BIOMASS -1% LWT | QUALITY -1% SUP |
Mowi Norway | -10.0 | -3.7 | -2.0 |
Mowi Chile | -2.5 | -0.7 | -0.5 |
Mowi Canada | -1.7 | -0.9 | -1.0 |
Mowi Scotland | -3.6 | -1.1 | -2.0 |
Mowi Faroe Islands | -0.7 | -0.5 | \u2014 |
Mowi Ireland | -0.3 | \u2014 | -0.1 |
Arctic Fish | -1.5 | -0.5 | -0.2 |
Total sensitivity effect on fair value | -20.3 | -7.5 | -5.7 |
INCIDENT-BASED MORTALITY 2024 (SALMON ONLY) | INCIDENT-BASED MORTALITY (1000 TONNES) | INCIDENT-BASED MORTALITY IN % OF TOTAL MORTALITY (VOLUME) |
Mowi Norway | 12.2 | 33.1% |
Mowi Chile | 3.5 | 38.3% |
Mowi Canada | 1.4 | 29.9% |
Mowi Scotland | 1.8 | 27.4% |
Mowi Faroe Islands | 0.1 | 18.9% |
Mowi Ireland | 1.1 | 50.2% |
Arctic Fish | \u2014 | \u2014 |
Mowi Group | 20.1 | 33.2% |
FORWARD PRICES USED IN FAIR VALUE CALCULATION1) QUARTER | EUR/KG |
Q1 2025 | 9.54 |
Q2 2025 | 9.78 |
Q3 2025 | 6.54 |
Q4 2025 | 6.98 |
Q1 2026 | 9.41 |
Q2 2026 | 8.72 |
INVENTORY (EUR MILLION) | 2024 | 2023 |
Raw materials and goods in process | 371.3 | 390.5 |
Finished goods | 216.0 | 214.6 |
Total inventory | 587.3 | 605.1 |
At year-end 2024, the market value of the Group\u2019s equity was significantly higher than the carrying amount of equity, which is an indication that the market considers the value of the Group\u2019s assets to exceed the carrying amount. For all cash generating units (CGUs), the recoverable amount has been determined based on a value-in-use calculation using cash flow projections based on approved budgets for the first year. The four next years are based on the approved long-term plan, followed by a terminal value calculation. The net present value of the cash flow is compared to the carrying amount in the CGU. If the carrying amount is higher than the calculated value in use, an impairment loss is recognised in profit and loss, reducing the asset value to the calculated value in use. The estimated cash flows are based on the assumption of continued operation as part of the Mowi Group.
There has been no changes in the identified CGUs for the year 2024.
Key assumptions
The key assumptions used in the calculation of value in use are harvested volume, EBIT(DA)/margins, capital expenditure, discount rates and the terminal growth rates. Please see the table below for a summary of the key assumptions for each CGU.
Harvest volume
The expected harvest volume is based on the fish currently being held at sea, forward stocking plan and adjusted for the expected future increase in production given today's licenses. This evaluation has been performed CGU by CGU and is updated yearly.
EBIT(DA)/Margins
The key profit target for salmon farming and sales is EBIT per kg, while value-added operations are measured in terms of EBIT/EBITDA in % of sales. EBIT per kg is highly volatile due to fluctuations in the price of salmon. Costs can under normal circumstances be forecast with a relatively high level of accuracy. As Mowi has entered into long-term sales contracts for a proportion of the volume to be harvested in 2025, the margin for 2025 can be forecasted with a higher level of accuracy than the margin for the years beyond (2026-2029). With regards to the terminal, an expected long-term EBIT pr. kg has been used in the Farming entities and an expected EBIT in % of sales has been used for
other operations. In the calculation we have used the EBIT margin from the Long Term Plan per entity, and reduced this to 90%. This principle has been applied in all Farming entities for the terminal value.
Capital expenditure
In the five-year forecast period, the capital expenditure necessary to meet the expected growth in revenue and profit is taken into consideration. Consistent with the Group\u2019s plan, the capital expenditure level for 2025 is high to further grow the operations. Beyond 2025, capital expenditures are aligned with growth and replacement plans. Capital expenditure to comply with current laws and regulations has been included. Capital expenditure related to committed and approved efficiency improvement programmes has also been included to support the inclusion of the benefits in the applied margin.
Changes in applicable laws and regulations may affect future estimated capital expenditure needs; this is not reflected in the figures used in the impairment test. Beyond the forecast period, capital expenditure will in general equal depreciation and relate to maintenance investments.
Discount rate
The discount rates are based on the Weighted Average Cost of Capital (WACC) methodology. The cost of equity is based on Capital Asset Pricing Model (CAPM). The cost of debt is based on the risk-free rate in the applicable country. In the model, a ten-year risk-free rate has been used. Calculation of the final discount rates (WACC) also takes into account market risk premium, debt risk premium, gearing and beta value. In the calculations, the Group has applied estimated cash flows before tax and the corresponding discount rates before tax.
Terminal growth rates
Growth after the five-year forecast period has in general been set independently for each cash-generating unit. The assessment includes historical views of inflation rates, growth compared to risk free rate as well as long term government inflation targets. The maximum growth rate applied beyond the forecast period is 2%. This is lower than the expected growth rates in the first five years and lower than the historic growth rate in salmon demand.
Impairment of licenses in CGU Farming Canada
In 2024, an impairment loss of EUR 54.2 million related to specific farming licenses and goodwill in British Columbia, Canada, was recognised. This is based on an updated assessment and the ongoing strategic review of the recent regulatory changes for fish farming in British Columbia, Canada, and the assumptions from the Long Term Plan have been adjusted accordingly. The main changes in the assumptions for Mowi Canada are estimated harvest volumes in the future periods and the corresponding negative effects on the cash flow projections. Following the recognition of the impairment loss, book value of our farming licenses in Canada is EUR 106.0 million, not related to British Columbia. The remaining book value of licenses in Mowi Canada is approximately 8.6% of the license value for the Group.
Sensitivity
With regard to the assessment of recoverable amount, the Group is of the view that no reasonably likely change in any of the above key assumptions would cause the carrying value to materially exceed the recoverable amount for any of the CGUs. With regards
to environmental changes, we have performed a sensitivity analysis, and the Group is in the view that likely climate changes will not materially change the outcome of the impairment test. Regarding climate risk, the Group has incorporated expected effects of climate change, inflation, wars, pandemics, nature risk and other external factors in the budget assumptions for 2025 and as part of the budgeting process for the long term plan for 2026-2029. For further information regarding environmental risk, references are made to Note 3B.
With regards to Canada, the imposition of 25% tariffs on goods imported from Canada to the US with effect from 2 April 2025 adds uncertainty. The situation is fluid and it is difficult to see how this will play out, including other countries. Mowi monitors developments and is prepared to redistribute volumes from our seven origins with respect to prevailing trade policies at any given time to best serve our customers.
The significant key assumptions with regards to sensitivity are expected harvest volumes and EBIT(DA)/Margins.
ASSUMPTIONS CASH GENERATING UNITS | HARVEST VOLUME 2024 (GWT) | WACC | TERMINAL | ||
BEFORE TAX | VALUE GROWTH % | ||||
2024 | 2023 | 2024 | 2023 | ||
Mowi Norway Farming | 303\u00a0501 | 10.5% | 10.9% | 2.0% | 2.0% |
Mowi Chile Farming | 72\u00a0694 | 13.5% | 12.9% | 2.0% | 2.0% |
Mowi Canada Farming | 30\u00a0426 | 12.3% | 11.7% | 2.0% | 2.0% |
Mowi Scotland Farming | 65\u00a0977 | 11.8% | 11.0% | 2.0% | 2.0% |
Mowi Ireland Farming | 8\u00a0887 | 10.8% | 9.8% | 2.0% | 2.0% |
Mowi Faroe Islands Farming | 9\u00a0378 | 10.8% | 8.7% | 2.0% | 2.0% |
Arctic Fish | 10\u00a0667 | 9.3% | 9.4% | 2.0% | 2.0% |
Mowi Consumer Products Europe | \u2014 | 10.0% | 10.0% | 2.0% | 2.0% |
Mowi Asia | \u2014 | 11.9% | 11.3% | 2.0% | 2.0% |
Mowi USA | \u2014 | 11.5% | 11.1% | 2.0% | 2.0% |
Mowi Feed | \u2014 | 9.5% | 10.3% | 2.0% | 2.0% |
Total | 501\u00a0530 |
Please see table below for an overview of the CGU's with allocated intangible assets as of December 31, 2024 and 2023.
CASH GENERATING UNITS (EUR MILLION) | GOODWILL | LICENSES | ||
2024 | 2023 | 2024 | 2023 | |
Mowi Norway Farming | 185.9 | 185.9 | 658.8 | 594.5 |
Mowi Scotland Farming | 12.6 | 8.0 | 109.4 | 104.4 |
Mowi Canada Farming | 35.1 | 38.4 | 106.0 | 155.3 |
Mowi Chile Farming | \u2014 | \u2014 | 117.4 | 118.0 |
Mowi Ireland Farming | \u2014 | \u2014 | 2.2 | 2.2 |
Mowi Faroe Islands Farming | \u2014 | \u2014 | 6.5 | 6.5 |
Arctic Fish | 46.2 | 46.2 | 233.6 | 233.0 |
Mowi Consumer Products | 90.0 | 89.7 | \u2014 | \u2014 |
Total | 369.6 | 368.1 | 1\u00a0233.9 | 1\u00a0213.9 |
SPECIFICATION OF INTANGIBLE ASSETS 2024 (EUR MILLION) | GOODWILL | LICENSES | OTHER INTANGIBLE ASSETS1) | TOTAL |
Acquisition cost as of 01.01 | 635.7 | 1\u00a0395.2 | 76.2 | 2\u00a0107.1 |
Additions in the year as a result of acquisitions2) | 4.1 | \u2014 | \u2014 | 4.1 |
Additions in the year | \u2014 | 65.9 | 1.0 | 66.8 |
Disposals / scrapping in the year | \u2014 | -0.1 | -0.3 | -0.4 |
Divestment | \u2014 | \u2014 | \u2014 | \u2014 |
Foreign currency adjustments | 0.1 | 18.1 | 1.1 | 19.3 |
Total acquisition cost as of 31.12 | 639.8 | 1\u00a0479.1 | 77.9 | 2\u00a0196.8 |
Accumulated amortisation and impairment losses as of 01.01 | 267.5 | 181.3 | 43.7 | 492.6 |
Amortisation in the year | \u2014 | \u2014 | 2.6 | 2.6 |
Impairment losses in the year3) | 2.7 | 56.3 | 3.5 | 62.4 |
Disposals/ scrapping in the year | \u2014 | \u2014 | -0.3 | -0.3 |
Foreign currency adjustments | -0.1 | 7.6 | \u2014 | 7.5 |
Total accumulated amortisation and impairment losses as of 31.12 | 270.2 | 245.2 | 49.5 | 564.9 |
Total carrying amount as of 31.12 | 369.6 | 1\u00a0233.9 | 28.4 | 1\u00a0631.9 |
Estimated lifetime | 3 - 25 years | |||
Amortisation method | Linear |
1) Other intangible assets includes assets under construction.
2) Additions in the year as a result of acquisitions are related to purchase of Sanda Island.
3) Impairment losses in the year is related to Canada West with EUR 54,2 millions and 8,2 EUR millions related to Chile. For more information see note 8.
SPECIFICATION OF INTANGIBLE ASSETS 2023 (EUR MILLION) | GOODWILL | LICENSES | OTHER INTANGIBLE ASSETS1) | TOTAL |
Acquisition cost as of 01.01 | 643.4 | 1\u00a0377.5 | 70.9 | 2\u00a0091.8 |
Additions in the year as a result of acquisitions | \u2014 | 27.7 | \u2014 | 27.7 |
Additions in the year2) | 0.5 | 27.0 | 5.4 | 32.9 |
Disposals / scrapping in the year | \u2014 | -1.6 | \u2014 | -1.7 |
Foreign currency adjustments | -8.2 | -35.3 | -0.1 | -43.6 |
Total acquisition cost as of 31.12 | 635.7 | 1\u00a0395.2 | 76.2 | 2\u00a0107.1 |
Accumulated amortisation and impairment losses as of 01.01 | 272.0 | 183.3 | 41.0 | 496.4 |
Amortisation in the year | \u2014 | \u2014 | 2.6 | 2.6 |
Impairment losses in the year | \u2014 | 3.1 | 0.3 | 3.4 |
Disposals/scrapping in the year | \u2014 | -0.6 | \u2014 | -0.7 |
Foreign currency adjustments | -4.5 | -4.3 | -0.2 | -9.0 |
Total accumulated amortisation and impairment losses as of 31.12 | 267.5 | 181.3 | 43.7 | 492.6 |
Total carrying amount as of 31.12 | 368.1 | 1\u00a0213.9 | 32.5 | 1\u00a0614.5 |
Estimated lifetime | 3 - 25 years | |||
Amortisation method | Linear |
1) Other intangible assets includes assets under construction.
2) Additions in the year as a result of acquisitions are related to the purchase of Dawnfresh.
SPECIFICATION OF SEAWATER LICENSES | NUMBER OF LICENSES/ TENURES | NUMBER OF LICENSES/ TENURES IN USE | TOTAL CURRENT PRODUCTION CAPACITY3) (T TONNES) | OTHER LIMITATIONS |
Mowi Norway1) | 236.7 | 236.7 | 350 | MAB limitation per license |
Mowi Chile | 181 | 30-40 | 144-192 | |
Mowi Scotland | 101 | 57 | 157 | MAB limitation per license |
Mowi Canada | 111 | 39 | 135 | MAB limitation per license |
Mowi Ireland | 20 | 14 | 11 | |
Mowi Faroe Islands2) | 3 | 3 | 11 | |
Arctic Fish | 10 | 10 | 30 |
1) BRC licenses not included.
2) Total capacity is 16 tonnes over a 18 month cycle.
3) Total production capacity HOG, full utilisation.
SPECIFICATION LICENSES 2024 | TOTAL CURRENT PRODUCTION CAPACITY2) (T TONNES) | HARVEST VOLUME (SALMON ONLY) | UTILISATION BASED ON PRODUCTION CAPACITY | BOOK VALUE1) (EUR MILLION) | BOOK VALUE PER PRODUCTION VOLUME |
Mowi Norway | 350 | 303\u00a0501 | 93% | 658.8 | 2.2 |
Mowi Chile | 144-192 | 72\u00a0694 | 38%-50% | 117.4 | 1.6 |
Mowi Scotland | 157 | 65\u00a0977 | 42% | 109.4 | 1.7 |
Mowi Canada | 135 | 30\u00a0426 | 23% | 106.0 | 3.5 |
Mowi Ireland | 11 | 8\u00a0887 | 81% | 2.2 | 0.3 |
Mowi Faroe Islands | 11 | 9\u00a0378 | 85% | 6.5 | 0.7 |
Arctic Fish | 30 | 10\u00a0667 | 36% | 233.6 | 21.9 |
Total | 501\u00a0530 | 1\u00a0233.9 | 2.5 |
1) Book value includes freshwater licenses in addition to seawater licenses.
2)Total production capacity HOG, full utilisation.
At year-end 2024, the market value of the Group\u2019s equity was significantly higher than the carrying amount of equity, which is an indication that the market considers the value of the Group\u2019s assets to exceed the carrying amount. For all cash generating units (CGUs), the recoverable amount has been determined based on a value-in-use calculation using cash flow projections based on approved budgets for the first year. The four next years are based on the approved long-term plan, followed by a terminal value calculation. The net present value of the cash flow is compared to the carrying amount in the CGU. If the carrying amount is higher than the calculated value in use, an impairment loss is recognised in profit and loss, reducing the asset value to the calculated value in use. The estimated cash flows are based on the assumption of continued operation as part of the Mowi Group.
There has been no changes in the identified CGUs for the year 2024.
Key assumptions
The key assumptions used in the calculation of value in use are harvested volume, EBIT(DA)/margins, capital expenditure, discount rates and the terminal growth rates. Please see the table below for a summary of the key assumptions for each CGU.
Harvest volume
The expected harvest volume is based on the fish currently being held at sea, forward stocking plan and adjusted for the expected future increase in production given today's licenses. This evaluation has been performed CGU by CGU and is updated yearly.
EBIT(DA)/Margins
The key profit target for salmon farming and sales is EBIT per kg, while value-added operations are measured in terms of EBIT/EBITDA in % of sales. EBIT per kg is highly volatile due to fluctuations in the price of salmon. Costs can under normal circumstances be forecast with a relatively high level of accuracy. As Mowi has entered into long-term sales contracts for a proportion of the volume to be harvested in 2025, the margin for 2025 can be forecasted with a higher level of accuracy than the margin for the years beyond (2026-2029). With regards to the terminal, an expected long-term EBIT pr. kg has been used in the Farming entities and an expected EBIT in % of sales has been used for
other operations. In the calculation we have used the EBIT margin from the Long Term Plan per entity, and reduced this to 90%. This principle has been applied in all Farming entities for the terminal value.
Capital expenditure
In the five-year forecast period, the capital expenditure necessary to meet the expected growth in revenue and profit is taken into consideration. Consistent with the Group\u2019s plan, the capital expenditure level for 2025 is high to further grow the operations. Beyond 2025, capital expenditures are aligned with growth and replacement plans. Capital expenditure to comply with current laws and regulations has been included. Capital expenditure related to committed and approved efficiency improvement programmes has also been included to support the inclusion of the benefits in the applied margin.
Changes in applicable laws and regulations may affect future estimated capital expenditure needs; this is not reflected in the figures used in the impairment test. Beyond the forecast period, capital expenditure will in general equal depreciation and relate to maintenance investments.
Discount rate
The discount rates are based on the Weighted Average Cost of Capital (WACC) methodology. The cost of equity is based on Capital Asset Pricing Model (CAPM). The cost of debt is based on the risk-free rate in the applicable country. In the model, a ten-year risk-free rate has been used. Calculation of the final discount rates (WACC) also takes into account market risk premium, debt risk premium, gearing and beta value. In the calculations, the Group has applied estimated cash flows before tax and the corresponding discount rates before tax.
Terminal growth rates
Growth after the five-year forecast period has in general been set independently for each cash-generating unit. The assessment includes historical views of inflation rates, growth compared to risk free rate as well as long term government inflation targets. The maximum growth rate applied beyond the forecast period is 2%. This is lower than the expected growth rates in the first five years and lower than the historic growth rate in salmon demand.
Impairment of licenses in CGU Farming Canada
In 2024, an impairment loss of EUR 54.2 million related to specific farming licenses and goodwill in British Columbia, Canada, was recognised. This is based on an updated assessment and the ongoing strategic review of the recent regulatory changes for fish farming in British Columbia, Canada, and the assumptions from the Long Term Plan have been adjusted accordingly. The main changes in the assumptions for Mowi Canada are estimated harvest volumes in the future periods and the corresponding negative effects on the cash flow projections. Following the recognition of the impairment loss, book value of our farming licenses in Canada is EUR 106.0 million, not related to British Columbia. The remaining book value of licenses in Mowi Canada is approximately 8.6% of the license value for the Group.
Sensitivity
With regard to the assessment of recoverable amount, the Group is of the view that no reasonably likely change in any of the above key assumptions would cause the carrying value to materially exceed the recoverable amount for any of the CGUs. With regards
to environmental changes, we have performed a sensitivity analysis, and the Group is in the view that likely climate changes will not materially change the outcome of the impairment test. Regarding climate risk, the Group has incorporated expected effects of climate change, inflation, wars, pandemics, nature risk and other external factors in the budget assumptions for 2025 and as part of the budgeting process for the long term plan for 2026-2029. For further information regarding environmental risk, references are made to Note 3B.
With regards to Canada, the imposition of 25% tariffs on goods imported from Canada to the US with effect from 2 April 2025 adds uncertainty. The situation is fluid and it is difficult to see how this will play out, including other countries. Mowi monitors developments and is prepared to redistribute volumes from our seven origins with respect to prevailing trade policies at any given time to best serve our customers.
The significant key assumptions with regards to sensitivity are expected harvest volumes and EBIT(DA)/Margins.
ASSUMPTIONS CASH GENERATING UNITS | HARVEST VOLUME 2024 (GWT) | WACC | TERMINAL | ||
BEFORE TAX | VALUE GROWTH % | ||||
2024 | 2023 | 2024 | 2023 | ||
Mowi Norway Farming | 303\u00a0501 | 10.5% | 10.9% | 2.0% | 2.0% |
Mowi Chile Farming | 72\u00a0694 | 13.5% | 12.9% | 2.0% | 2.0% |
Mowi Canada Farming | 30\u00a0426 | 12.3% | 11.7% | 2.0% | 2.0% |
Mowi Scotland Farming | 65\u00a0977 | 11.8% | 11.0% | 2.0% | 2.0% |
Mowi Ireland Farming | 8\u00a0887 | 10.8% | 9.8% | 2.0% | 2.0% |
Mowi Faroe Islands Farming | 9\u00a0378 | 10.8% | 8.7% | 2.0% | 2.0% |
Arctic Fish | 10\u00a0667 | 9.3% | 9.4% | 2.0% | 2.0% |
Mowi Consumer Products Europe | \u2014 | 10.0% | 10.0% | 2.0% | 2.0% |
Mowi Asia | \u2014 | 11.9% | 11.3% | 2.0% | 2.0% |
Mowi USA | \u2014 | 11.5% | 11.1% | 2.0% | 2.0% |
Mowi Feed | \u2014 | 9.5% | 10.3% | 2.0% | 2.0% |
Total | 501\u00a0530 |
Please see table below for an overview of the CGU's with allocated intangible assets as of December 31, 2024 and 2023.
CASH GENERATING UNITS (EUR MILLION) | GOODWILL | LICENSES | ||
2024 | 2023 | 2024 | 2023 | |
Mowi Norway Farming | 185.9 | 185.9 | 658.8 | 594.5 |
Mowi Scotland Farming | 12.6 | 8.0 | 109.4 | 104.4 |
Mowi Canada Farming | 35.1 | 38.4 | 106.0 | 155.3 |
Mowi Chile Farming | \u2014 | \u2014 | 117.4 | 118.0 |
Mowi Ireland Farming | \u2014 | \u2014 | 2.2 | 2.2 |
Mowi Faroe Islands Farming | \u2014 | \u2014 | 6.5 | 6.5 |
Arctic Fish | 46.2 | 46.2 | 233.6 | 233.0 |
Mowi Consumer Products | 90.0 | 89.7 | \u2014 | \u2014 |
Total | 369.6 | 368.1 | 1\u00a0233.9 | 1\u00a0213.9 |
Impairment testing of non-current assets
Impairment tests for specific non-current assets are performed when there are indications of impairment. In 2024, a net loss in fixed assets of EUR 2.0 million was booked in Scotland, EUR 1.6 million
in Norway and EUR 0.3 million in Canada. Based on evaluation no additional impairment due to climate risk and no changes in useful life have been deemed required.
SPECIFICATION OF INTANGIBLE ASSETS 2024 (EUR MILLION) | GOODWILL | LICENSES | OTHER INTANGIBLE ASSETS1) | TOTAL |
Acquisition cost as of 01.01 | 635.7 | 1\u00a0395.2 | 76.2 | 2\u00a0107.1 |
Additions in the year as a result of acquisitions2) | 4.1 | \u2014 | \u2014 | 4.1 |
Additions in the year | \u2014 | 65.9 | 1.0 | 66.8 |
Disposals / scrapping in the year | \u2014 | -0.1 | -0.3 | -0.4 |
Divestment | \u2014 | \u2014 | \u2014 | \u2014 |
Foreign currency adjustments | 0.1 | 18.1 | 1.1 | 19.3 |
Total acquisition cost as of 31.12 | 639.8 | 1\u00a0479.1 | 77.9 | 2\u00a0196.8 |
Accumulated amortisation and impairment losses as of 01.01 | 267.5 | 181.3 | 43.7 | 492.6 |
Amortisation in the year | \u2014 | \u2014 | 2.6 | 2.6 |
Impairment losses in the year3) | 2.7 | 56.3 | 3.5 | 62.4 |
Disposals/ scrapping in the year | \u2014 | \u2014 | -0.3 | -0.3 |
Foreign currency adjustments | -0.1 | 7.6 | \u2014 | 7.5 |
Total accumulated amortisation and impairment losses as of 31.12 | 270.2 | 245.2 | 49.5 | 564.9 |
Total carrying amount as of 31.12 | 369.6 | 1\u00a0233.9 | 28.4 | 1\u00a0631.9 |
Estimated lifetime | 3 - 25 years | |||
Amortisation method | Linear |
1) Other intangible assets includes assets under construction.
2) Additions in the year as a result of acquisitions are related to purchase of Sanda Island.
3) Impairment losses in the year is related to Canada West with EUR 54,2 millions and 8,2 EUR millions related to Chile. For more information see note 8.
SPECIFICATION OF INTANGIBLE ASSETS 2023 (EUR MILLION) | GOODWILL | LICENSES | OTHER INTANGIBLE ASSETS1) | TOTAL |
Acquisition cost as of 01.01 | 643.4 | 1\u00a0377.5 | 70.9 | 2\u00a0091.8 |
Additions in the year as a result of acquisitions | \u2014 | 27.7 | \u2014 | 27.7 |
Additions in the year2) | 0.5 | 27.0 | 5.4 | 32.9 |
Disposals / scrapping in the year | \u2014 | -1.6 | \u2014 | -1.7 |
Foreign currency adjustments | -8.2 | -35.3 | -0.1 | -43.6 |
Total acquisition cost as of 31.12 | 635.7 | 1\u00a0395.2 | 76.2 | 2\u00a0107.1 |
Accumulated amortisation and impairment losses as of 01.01 | 272.0 | 183.3 | 41.0 | 496.4 |
Amortisation in the year | \u2014 | \u2014 | 2.6 | 2.6 |
Impairment losses in the year | \u2014 | 3.1 | 0.3 | 3.4 |
Disposals/scrapping in the year | \u2014 | -0.6 | \u2014 | -0.7 |
Foreign currency adjustments | -4.5 | -4.3 | -0.2 | -9.0 |
Total accumulated amortisation and impairment losses as of 31.12 | 267.5 | 181.3 | 43.7 | 492.6 |
Total carrying amount as of 31.12 | 368.1 | 1\u00a0213.9 | 32.5 | 1\u00a0614.5 |
Estimated lifetime | 3 - 25 years | |||
Amortisation method | Linear |
1) Other intangible assets includes assets under construction.
2) Additions in the year as a result of acquisitions are related to the purchase of Dawnfresh.
SPECIFICATION OF SEAWATER LICENSES | NUMBER OF LICENSES/ TENURES | NUMBER OF LICENSES/ TENURES IN USE | TOTAL CURRENT PRODUCTION CAPACITY3) (T TONNES) | OTHER LIMITATIONS |
Mowi Norway1) | 236.7 | 236.7 | 350 | MAB limitation per license |
Mowi Chile | 181 | 30-40 | 144-192 | |
Mowi Scotland | 101 | 57 | 157 | MAB limitation per license |
Mowi Canada | 111 | 39 | 135 | MAB limitation per license |
Mowi Ireland | 20 | 14 | 11 | |
Mowi Faroe Islands2) | 3 | 3 | 11 | |
Arctic Fish | 10 | 10 | 30 |
1) BRC licenses not included.
2) Total capacity is 16 tonnes over a 18 month cycle.
3) Total production capacity HOG, full utilisation.
SPECIFICATION LICENSES 2024 | TOTAL CURRENT PRODUCTION CAPACITY2) (T TONNES) | HARVEST VOLUME (SALMON ONLY) | UTILISATION BASED ON PRODUCTION CAPACITY | BOOK VALUE1) (EUR MILLION) | BOOK VALUE PER PRODUCTION VOLUME |
Mowi Norway | 350 | 303\u00a0501 | 93% | 658.8 | 2.2 |
Mowi Chile | 144-192 | 72\u00a0694 | 38%-50% | 117.4 | 1.6 |
Mowi Scotland | 157 | 65\u00a0977 | 42% | 109.4 | 1.7 |
Mowi Canada | 135 | 30\u00a0426 | 23% | 106.0 | 3.5 |
Mowi Ireland | 11 | 8\u00a0887 | 81% | 2.2 | 0.3 |
Mowi Faroe Islands | 11 | 9\u00a0378 | 85% | 6.5 | 0.7 |
Arctic Fish | 30 | 10\u00a0667 | 36% | 233.6 | 21.9 |
Total | 501\u00a0530 | 1\u00a0233.9 | 2.5 |
1) Book value includes freshwater licenses in addition to seawater licenses.
2)Total production capacity HOG, full utilisation.
SPECIFICATION OF INTANGIBLE ASSETS 2024 (EUR MILLION) | GOODWILL | LICENSES | OTHER INTANGIBLE ASSETS1) | TOTAL |
Acquisition cost as of 01.01 | 635.7 | 1\u00a0395.2 | 76.2 | 2\u00a0107.1 |
Additions in the year as a result of acquisitions2) | 4.1 | \u2014 | \u2014 | 4.1 |
Additions in the year | \u2014 | 65.9 | 1.0 | 66.8 |
Disposals / scrapping in the year | \u2014 | -0.1 | -0.3 | -0.4 |
Divestment | \u2014 | \u2014 | \u2014 | \u2014 |
Foreign currency adjustments | 0.1 | 18.1 | 1.1 | 19.3 |
Total acquisition cost as of 31.12 | 639.8 | 1\u00a0479.1 | 77.9 | 2\u00a0196.8 |
Accumulated amortisation and impairment losses as of 01.01 | 267.5 | 181.3 | 43.7 | 492.6 |
Amortisation in the year | \u2014 | \u2014 | 2.6 | 2.6 |
Impairment losses in the year3) | 2.7 | 56.3 | 3.5 | 62.4 |
Disposals/ scrapping in the year | \u2014 | \u2014 | -0.3 | -0.3 |
Foreign currency adjustments | -0.1 | 7.6 | \u2014 | 7.5 |
Total accumulated amortisation and impairment losses as of 31.12 | 270.2 | 245.2 | 49.5 | 564.9 |
Total carrying amount as of 31.12 | 369.6 | 1\u00a0233.9 | 28.4 | 1\u00a0631.9 |
Estimated lifetime | 3 - 25 years | |||
Amortisation method | Linear |
1) Other intangible assets includes assets under construction.
2) Additions in the year as a result of acquisitions are related to purchase of Sanda Island.
3) Impairment losses in the year is related to Canada West with EUR 54,2 millions and 8,2 EUR millions related to Chile. For more information see note 8.
SPECIFICATION OF INTANGIBLE ASSETS 2023 (EUR MILLION) | GOODWILL | LICENSES | OTHER INTANGIBLE ASSETS1) | TOTAL |
Acquisition cost as of 01.01 | 643.4 | 1\u00a0377.5 | 70.9 | 2\u00a0091.8 |
Additions in the year as a result of acquisitions | \u2014 | 27.7 | \u2014 | 27.7 |
Additions in the year2) | 0.5 | 27.0 | 5.4 | 32.9 |
Disposals / scrapping in the year | \u2014 | -1.6 | \u2014 | -1.7 |
Foreign currency adjustments | -8.2 | -35.3 | -0.1 | -43.6 |
Total acquisition cost as of 31.12 | 635.7 | 1\u00a0395.2 | 76.2 | 2\u00a0107.1 |
Accumulated amortisation and impairment losses as of 01.01 | 272.0 | 183.3 | 41.0 | 496.4 |
Amortisation in the year | \u2014 | \u2014 | 2.6 | 2.6 |
Impairment losses in the year | \u2014 | 3.1 | 0.3 | 3.4 |
Disposals/scrapping in the year | \u2014 | -0.6 | \u2014 | -0.7 |
Foreign currency adjustments | -4.5 | -4.3 | -0.2 | -9.0 |
Total accumulated amortisation and impairment losses as of 31.12 | 267.5 | 181.3 | 43.7 | 492.6 |
Total carrying amount as of 31.12 | 368.1 | 1\u00a0213.9 | 32.5 | 1\u00a0614.5 |
Estimated lifetime | 3 - 25 years | |||
Amortisation method | Linear |
1) Other intangible assets includes assets under construction.
2) Additions in the year as a result of acquisitions are related to the purchase of Dawnfresh.
SPECIFICATION OF SEAWATER LICENSES | NUMBER OF LICENSES/ TENURES | NUMBER OF LICENSES/ TENURES IN USE | TOTAL CURRENT PRODUCTION CAPACITY3) (T TONNES) | OTHER LIMITATIONS |
Mowi Norway1) | 236.7 | 236.7 | 350 | MAB limitation per license |
Mowi Chile | 181 | 30-40 | 144-192 | |
Mowi Scotland | 101 | 57 | 157 | MAB limitation per license |
Mowi Canada | 111 | 39 | 135 | MAB limitation per license |
Mowi Ireland | 20 | 14 | 11 | |
Mowi Faroe Islands2) | 3 | 3 | 11 | |
Arctic Fish | 10 | 10 | 30 |
1) BRC licenses not included.
2) Total capacity is 16 tonnes over a 18 month cycle.
3) Total production capacity HOG, full utilisation.
SPECIFICATION LICENSES 2024 | TOTAL CURRENT PRODUCTION CAPACITY2) (T TONNES) | HARVEST VOLUME (SALMON ONLY) | UTILISATION BASED ON PRODUCTION CAPACITY | BOOK VALUE1) (EUR MILLION) | BOOK VALUE PER PRODUCTION VOLUME |
Mowi Norway | 350 | 303\u00a0501 | 93% | 658.8 | 2.2 |
Mowi Chile | 144-192 | 72\u00a0694 | 38%-50% | 117.4 | 1.6 |
Mowi Scotland | 157 | 65\u00a0977 | 42% | 109.4 | 1.7 |
Mowi Canada | 135 | 30\u00a0426 | 23% | 106.0 | 3.5 |
Mowi Ireland | 11 | 8\u00a0887 | 81% | 2.2 | 0.3 |
Mowi Faroe Islands | 11 | 9\u00a0378 | 85% | 6.5 | 0.7 |
Arctic Fish | 30 | 10\u00a0667 | 36% | 233.6 | 21.9 |
Total | 501\u00a0530 | 1\u00a0233.9 | 2.5 |
1) Book value includes freshwater licenses in addition to seawater licenses.
2)Total production capacity HOG, full utilisation.
SPECIFICATION OF PPE 2024 (EUR MILLION) | LAND & BUILDINGS | MACHINERY & EQUIPMENT | TRANSPORT | NETS, PENS & MOORINGS | UNDER CONSTRUCTION /PREPAYMENTS | OTHER TANGIBLE | TOTAL |
Acquisition cost as of 01.01 | 1\u00a0103.9 | 1\u00a0333.7 | 437.8 | 589.1 | 389.6 | 79.8 | 3\u00a0933.9 |
Acquisitions through business combinations | 3.5 | \u2014 | \u2014 | \u2014 | 0.5 | \u2014 | 4.1 |
Additions in the year | 114.3 | 94.9 | 44.0 | 66.9 | \u2014 | 8.3 | 328.3 |
Reclassification | 0.2 | 4.2 | 2.2 | 2.6 | \u2014 | \u2014 | 9.1 |
Disposals / scrapping in the year | -15.3 | -55.2 | -3.3 | -28.3 | -53.5 | -0.8 | -156.4 |
Foreign currency adjustments | 15.9 | 34.0 | 3.0 | 11.7 | 12.4 | 1.5 | 78.5 |
Total acquisition cost as of 31.12 | 1\u00a0222.5 | 1\u00a0411.5 | 483.6 | 641.9 | 349.0 | 88.8 | 4\u00a0197.3 |
Accumulated depreciation and impairment losses as of 01.01 | 431.4 | 967.8 | 217.4 | 360.4 | 17.7 | 55.5 | 2\u00a0050.0 |
Depreciation in the year | 47.8 | 78.9 | 33.1 | 53.1 | \u2014 | 5.5 | 218.2 |
Impairment losses and reversal of previous write-downs in the year | 1.0 | \u2014 | -1.4 | -1.8 | 1.2 | 4.7 | 3.7 |
Reclassification | 0.2 | 4.8 | 2.2 | 2.7 | \u2014 | -0.1 | 9.8 |
Disposals / scrapping in the year | -11.9 | -55.3 | -10.0 | -35.5 | \u2014 | -5.3 | -117.9 |
Foreign currency adjustments | 5.8 | 25.2 | 1.2 | 7.9 | 8.3 | 1.5 | 49.8 |
Total accumulated depreciation and impairment losses as of 31.12 | 474.3 | 1\u00a0021.1 | 242.5 | 386.7 | 27.2 | 61.9 | 2\u00a0213.7 |
Total carrying amount as of 31.12 | 748.1 | 390.3 | 241.1 | 255.1 | 321.8 | 26.9 | 1\u00a0983.5 |
Estimated lifetime | Land; infinite Buildings; 0-20 years | 5-20 years | 3-10 years | 5-10 years | n/a | 3-10 years | \u00a0 |
Depreciation method | Linear | Linear | Linear | Linear | n/a | Linear | \u00a0 |
\u00a0\u00a0\u00a0\u00a0
SPECIFICATION OF PPE 2023 (EUR MILLION) | LAND & BUILDINGS | MACHINERY & EQUIPMENT | TRANSPORT | NETS, PENS\u00a0& MOORINGS | UNDER CONSTRUCTION /PREPAYMENTS | OTHER TANGIBLE | TOTAL |
Acquisition cost as of 01.01 | 1\u00a0039.1 | 1\u00a0260.1 | 385.7 | 535.9 | 333.4 | 70.7 | 3\u00a0625.0 |
Acquisitions through business combinations | 2.7 | 4.2 | 0.2 | \u2014 | \u2014 | \u2014 | 7.1 |
Additions in the year | 80.4 | 89.5 | 59.4 | 75.9 | 51.6 | 10.4 | 367.2 |
Reclassification | -8.2 | -18.4 | -2.9 | -4.9 | 0.2 | \u2014 | -34.1 |
Disposals / scrapping in the year | -2.8 | -11.9 | -3.5 | -14.4 | \u2014 | -0.5 | -33.1 |
Foreign currency adjustments | -7.4 | 10.2 | -1.2 | -3.4 | 4.4 | -0.8 | 1.8 |
Total acquisition cost as of 31.12 | 1\u00a0103.9 | 1\u00a0333.7 | 437.8 | 589.1 | 389.6 | 79.8 | 3\u00a0933.9 |
Accumulated depreciation and impairment losses as of 01.01 | 400.8 | 924.4 | 194.0 | 329.2 | 13.3 | 52.4 | 1\u00a0914.1 |
Depreciation in the year | 41.9 | 76.0 | 29.7 | 50.7 | \u2014 | 3.8 | 202.1 |
Impairment losses and reversal of previous write-downs in the year | 0.6 | 1.7 | \u2014 | 0.6 | 0.5 | 2.4 | 5.8 |
Reclassification | -8.1 | -18.4 | -2.8 | -4.7 | \u2014 | -0.1 | -34.1 |
Disposals /scrapping in the year | -2.5 | -12.9 | -3.3 | -13.0 | 0.7 | -2.2 | -33.1 |
Foreign currency adjustments | -1.2 | -3.0 | -0.3 | -2.5 | 3.1 | -0.8 | -4.6 |
Total accumulated depreciation and impairment losses as of 31.12 | 431.4 | 967.8 | 217.4 | 360.4 | 17.7 | 55.5 | 2\u00a0050.0 |
Total carrying amount as of 31.12 | 672.4 | 366.1 | 220.5 | 228.6 | 372.0 | 24.2 | 1\u00a0883.9 |
Estimated lifetime | Land; infinite Buildings; 0-20 years | 5-20 years | 3-10 years | 5-10 years | n/a | 3-10 years | \u00a0 |
Depreciation method | Linear | Linear | Linear | Linear | n/a | Linear | \u00a0 |
Sale of non-current assets
Non-current tangible assets have been sold during the year, and the net gain on the sale of assets (included in the line item Other operating expenses in the consolidated statement of comprehensive income) amounts to EUR 3.6 million in 2024. The corresponding figure for 2023 is EUR 1.6 million.
Impairment testing of non-current assets
Impairment tests for specific non-current assets are performed when there are indications of impairment. In 2024, a net loss in fixed assets of EUR 2.0 million was booked in Scotland, EUR 1.6 million
in Norway and EUR 0.3 million in Canada. Based on evaluation no additional impairment due to climate risk and no changes in useful life have been deemed required.
Contractual commitments
Contractual commitments
Update on the allegations of price collusion
On 25 January 2024, Mowi received a Statement of Objections from the European Commission as a result of the Commission's inspections in February 2019 of several Norwegian producers of farmed Atlantic salmon, including Mowi. The Statement of Objections is not a final decision, but rather the Commission's preliminary view that the companies under investigation may have breached the EU competition rules.
Mowi contests the Commission's preliminary view and the characteristics of the alleged behaviour in the market for farmed Norwegian Atlantic salmon, and strongly believes there has been no infringement of the competition rules. Issuing a Statement of Objections and opening a formal procedure does not in any way prejudge the outcome. The Commission will first after the parties
have exercised their rights of defence conclude on whether the alleged behaviour amounts to a violation of the EU competition rules.
A hearing in the matter was held in September 2024. The commission is now going through the information and documentation received and is expected to request more information from Mowi if found necessary. The commission will work forward until they have a final conclusion/adopt a decision. A conclusion is expected in 2025.
Furthermore, Mowi has been named a defendant in civil law proceedings by a group of claimants in the UK, including Scotland. Mowi disputes the allegations, which suggest a breach of applicable competition law on Mowi's part. The civil law claims clearly lack merit and are entirely unsubstantiated.
Decommissioning cost
Mowi has Farming operations in 7 countries. In all countries the useful life of our licences is considered indefinite (ref. note 2). Mowi has an obligation to decommission and remove all equipment when the use of a site/license comes to an end. In accordance with IAS 37.14 a provision shall be recognised when an entity has a present obligation as a result of a past event, such as setting up a site. However, due to the nature of our business and the assessed useful life of our licenses, such an obligation does not exist in the foreseeable future. In order to calculate a present value of decommissioning costs, a life span of at least 50 years should be applied in the calculation (although licenses have indefinite useful life) due to our plan of continued operations on the sites. Mowi considers a present value of such a cost of 50 years and beyond cannot be reliably measured. This is because the settlement dates are indeterminate; and other estimates, such as very long-term discount rates for which there is no observable measure, cannot be reliably determined. Consequently, the decommissioning obligation that exists cannot be reliably quantified and is disclosed as a contingent liability. There remains a high degree of uncertainty concerning such obligations. If and when there is a known change in our planned operations an updated assessment of any provision
will be made for the related sites and decommissioning cost. Even though the licenses are indefinite there will be the need to change the equipment on our locations from time to time. The expected life span on our equipment is long (app. 20 years) with appropriate maintenance performed. The cost related to changing equipment is limited. All costs related to running maintenance is expensed and investment in any new equipment including removal/moving to site is accounted as addition to PPE.
Based on the above, no provisions related to decommissioning or rehabilitation cost is recognised in the financial statement.
Other cases
We are routinely involved in various legal matters arising from the course of our business.
While the outcome of these proceedings cannot be predicted with certainty, we believe that, when resolved, they will not have any material adverse effect on our results, financial position or liquidity.
Contractual commitments
INTEREST-BEARING DEBT (EUR MILLION) | 2024 | 2023 |
Non-current interest-bearing bank debt | 1\u00a0513.1 | 1\u00a0744.2 |
Green bonds | 294.6 | 199.5 |
Schuldschein loan | 149.6 | 149.3 |
Total non-current interest-bearing debt | 1\u00a0957.3 | 2\u00a0093.0 |
Current interest-bearing bank debt | \u2014 | 0.1 |
Green bond | 200.0 | \u2014 |
Current interest-bearing debt | 200.0 | 0.1 |
Total interest-bearing debt | 2\u00a0157.3 | 2\u00a0093.1 |
Financing of the Mowi Group is mainly carried out through the parent company Mowi ASA. External financing is obtained by subsidiaries only if this is optimal for the Group. Mowi complied with its loan covenants at the end of 2024.
The following programmes are the main sources of financing for the Mowi Group as of December\u00a031, 2024:
EUR 2 000 million sustainability-linked revolving credit facility
In September 2021, Mowi signed a senior secured five-year, EUR 1 800 million multicurrency sustainability-linked revolving credit facility (the \"Facility Agreement\") with DNB, Nordea, ABN Amro, Rabobank, Danske Bank, SEB and Cr\u00e9dit Agricole. In 2023, an accordion increase option for EUR 200 million was exercised, increasing the total facility size to EUR 2 000 million. The Facility Agreement includes a further accordion increase option, which provides flexibility for the parties to agree to increase the size of the Facility Agreement by an additional EUR 100 million during the remaining term. The principal financial covenant of the Facility Agreement is an equity ratio of minimum 35%, with the calculation of the ratio being adjusted for the effects of IFRS 16. Furthermore, the ability of the Group to take on new debt is regulated by the loan agreement. The facility has final maturity in September 2026.
The facility is available to Mowi ASA and selected subsidiaries. In addition, the revolving credit facility may be allocated in part as bilateral credits (including overdraft facilities and facilities for the issuance of guarantees) between syndicate banks and group companies.
Drawings at year end 2024 on the syndicated credit facility amount to EUR 1 371.9 million, down from 1 615.9 million at year end 2023.
EUR 150 million Schuldschein loan
In May 2019, Mowi entered into a EUR 120 million, seven-year senior unsecured loan in the German Schuldschein market, increased to EUR 150 million in August 2019. The loan consists of two floating-rate tranches of EUR 99 million and EUR 30 million, and a fixed-rate tranche of EUR 21 million, and the sole financial covenant is an equity ratio of minimum 30%. Mowi pays semi-annual interest of six-month EURIBOR (floored at 0%) plus 1.70% p.a. on the floating-rate tranches and, through a corresponding interest rate swap, six-month EURIBOR plus 1.705% p.a. on the fixed-rate tranche. All tranches are non-amortising and are repayable in May 2026.
EUR 200 million green bond
In January 2020, Mowi issued an unsecured green bond, with a principal amount of EUR 200 million, a\u00a0coupon of three-month EURIBOR (floored at 0%) plus 1.60% p.a., payable quarterly, and with the sole financial covenant being an equity ratio of minimum 30%. The green bond was repaid in full at maturity in January 2025. The proceeds from the green bond issue were used to finance or refinance green projects as further defined by Mowi's green finance framework, which received a medium green shading from CICERO Shades of Green in May 2023. The bond is listed on the Euronext Oslo Stock Exchange ESG Bonds section with ISIN: NO 0010874050.
NOK 2 500 million green bond
In May 2024, Mowi issued a green bond with a principal amount of
NOK 2 500 million. While the bond issue carries a quarterly\u00a0coupon of three-month NIBOR (floored at 0%) plus 1.13% p.a., Mowi pays quarterly interest of three-month EURIBOR (floored at 0%) plus 1.4715% p.a. through corresponding cross-currency swaps entered into at the time of issue. The green bond is unsecured and is repayable in May 2029 with no interim instalments, and the sole financial covenant is an equity ratio of minimum 30%. Proceeds will be used to finance or refinance green projects as further defined by Mowi's green finance framework, which received a medium green shading from CICERO Shades of Green in May 2023. The bond is listed on the Euronext Oslo Stock Exchange ESG Bonds section with ISIN: NO 0013220897.
NOK 1 000 million green bond
In May 2024, Mowi issued a green bond with a principal amount of NOK 1 000 million. While the bond issue carries a fixed annual\u00a0coupon of 5.407% p.a., Mowi pays quarterly interest of three-month EURIBOR (floored at 0%) plus 1.195% p.a. through corresponding cross-currency and interest rate swaps entered into at the time of issue. The green bond is unsecured and is repayable in May 2032 with no interim instalments, and the sole financial covenant is an equity ratio of minimum 30%. Proceeds from the green bond issue will be used to finance or refinance green
projects as further defined by Mowi's green finance framework, which received a medium green shading from CICERO Shades of Green in May 2023. The bond is listed on the Euronext Oslo Stock Exchange ESG Bonds section with ISIN: NO 0013220905.
EUR 170 million Arctic Fish sustainability-linked credit facilities
In October 2023, Arctic Fish signed a senior secured three-year, EUR 170 million sustainability-linked credit facilities agreement (the \"Arctic Fish Facilities Agreement\") with Danske Bank, DNB, Nordea and Rabobank. The Arctic Fish Facilities Agreement comprises a EUR 120 million term loan and a EUR 50 million revolving credit facility to finance day-to-day operations and future growth of the company. The term loan will be repayable by quarterly instalments of EUR 3 million beginning in December 2025, and the facilities have final maturity in November 2027 following exercising of a one-year extension option during 2024. The agreement includes a further one-year extension option providing flexibility for the parties to extend the final maturity of the facilities until 2028 by mutual agreement.
Drawings on the aggregated facilities at year end 2024 amount to EUR 137.5 million, up from EUR 127.5 million in 2023.
Cash movements financing activities
CASH MOVEMENTS FINANCING ACTIVITIES (EUR MILLION) | INTEREST-BEARING DEBT | DERIVATIVES |
Balance at January 1, 2024 | 2\u00a0092.6 | 6.3 |
Proceeds from loans and borrowings | 55.4 | \u2014 |
Total changes from financing cash flows | 55.4 | \u2014 |
The effect of changes in foreign exchange rates | 10.8 | \u2014 |
Changes in fair value | \u2014 | 1.8 |
Liability-related | 10.8 | 1.8 |
Capitalised borrowing cost | -1.5 | \u2014 |
Interest expense | 115.0 | 0.9 |
Interest paid | -115.0 | -0.9 |
Total liability-related other changes | -1.5 | \u2014 |
Balance at December 31, 2024 | 2\u00a0157.3 | 8.1 |
In addition Mowi has paid EUR 25.5 million in interest expenses for leasing during 2024. For cash details in regards to leasing, please see note 29.
CASH MOVEMENTS FINANCING ACTIVITIES (EUR MILLION) | \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 INTEREST-BEARING DEBT | DERIVATIVES |
Balance at January 1, 2023 | 1\u00a0937.4 | 11.9 |
Proceeds from loans and borrowings | 158.9 | \u2014 |
Total changes from financing cash flows | 158.9 | \u2014 |
The effect of changes in foreign exchange rates | -10.0 | \u2014 |
Changes in fair value | \u2014 | -5.6 |
Liability-related | -10.0 | -5.6 |
Capitalised borrowing cost | 4.2 | \u2014 |
Interest expense | 95.0 | 0.3 |
Interest paid | -92.4 | -0.3 |
Total liability-related other changes | 6.8 | \u2014 |
Balance at December 31, 2023 | 2\u00a0093.1 | 6.3 |
The following programmes are the main sources of financing for the Mowi Group as of December\u00a031, 2024:
EUR 2 000 million sustainability-linked revolving credit facility
In September 2021, Mowi signed a senior secured five-year, EUR 1 800 million multicurrency sustainability-linked revolving credit facility (the \"Facility Agreement\") with DNB, Nordea, ABN Amro, Rabobank, Danske Bank, SEB and Cr\u00e9dit Agricole. In 2023, an accordion increase option for EUR 200 million was exercised, increasing the total facility size to EUR 2 000 million. The Facility Agreement includes a further accordion increase option, which provides flexibility for the parties to agree to increase the size of the Facility Agreement by an additional EUR 100 million during the remaining term. The principal financial covenant of the Facility Agreement is an equity ratio of minimum 35%, with the calculation of the ratio being adjusted for the effects of IFRS 16. Furthermore, the ability of the Group to take on new debt is regulated by the loan agreement. The facility has final maturity in September 2026.
The facility is available to Mowi ASA and selected subsidiaries. In addition, the revolving credit facility may be allocated in part as bilateral credits (including overdraft facilities and facilities for the issuance of guarantees) between syndicate banks and group companies.
Drawings at year end 2024 on the syndicated credit facility amount to EUR 1 371.9 million, down from 1 615.9 million at year end 2023.
EUR 150 million Schuldschein loan
In May 2019, Mowi entered into a EUR 120 million, seven-year senior unsecured loan in the German Schuldschein market, increased to EUR 150 million in August 2019. The loan consists of two floating-rate tranches of EUR 99 million and EUR 30 million, and a fixed-rate tranche of EUR 21 million, and the sole financial covenant is an equity ratio of minimum 30%. Mowi pays semi-annual interest of six-month EURIBOR (floored at 0%) plus 1.70% p.a. on the floating-rate tranches and, through a corresponding interest rate swap, six-month EURIBOR plus 1.705% p.a. on the fixed-rate tranche. All tranches are non-amortising and are repayable in May 2026.
EUR 200 million green bond
In January 2020, Mowi issued an unsecured green bond, with a principal amount of EUR 200 million, a\u00a0coupon of three-month EURIBOR (floored at 0%) plus 1.60% p.a., payable quarterly, and with the sole financial covenant being an equity ratio of minimum 30%. The green bond was repaid in full at maturity in January 2025. The proceeds from the green bond issue were used to finance or refinance green projects as further defined by Mowi's green finance framework, which received a medium green shading from CICERO Shades of Green in May 2023. The bond is listed on the Euronext Oslo Stock Exchange ESG Bonds section with ISIN: NO 0010874050.
NOK 2 500 million green bond
In May 2024, Mowi issued a green bond with a principal amount of
NOK 2 500 million. While the bond issue carries a quarterly\u00a0coupon of three-month NIBOR (floored at 0%) plus 1.13% p.a., Mowi pays quarterly interest of three-month EURIBOR (floored at 0%) plus 1.4715% p.a. through corresponding cross-currency swaps entered into at the time of issue. The green bond is unsecured and is repayable in May 2029 with no interim instalments, and the sole financial covenant is an equity ratio of minimum 30%. Proceeds will be used to finance or refinance green projects as further defined by Mowi's green finance framework, which received a medium green shading from CICERO Shades of Green in May 2023. The bond is listed on the Euronext Oslo Stock Exchange ESG Bonds section with ISIN: NO 0013220897.
NOK 1 000 million green bond
In May 2024, Mowi issued a green bond with a principal amount of NOK 1 000 million. While the bond issue carries a fixed annual\u00a0coupon of 5.407% p.a., Mowi pays quarterly interest of three-month EURIBOR (floored at 0%) plus 1.195% p.a. through corresponding cross-currency and interest rate swaps entered into at the time of issue. The green bond is unsecured and is repayable in May 2032 with no interim instalments, and the sole financial covenant is an equity ratio of minimum 30%. Proceeds from the green bond issue will be used to finance or refinance green
projects as further defined by Mowi's green finance framework, which received a medium green shading from CICERO Shades of Green in May 2023. The bond is listed on the Euronext Oslo Stock Exchange ESG Bonds section with ISIN: NO 0013220905.
EUR 170 million Arctic Fish sustainability-linked credit facilities
In October 2023, Arctic Fish signed a senior secured three-year, EUR 170 million sustainability-linked credit facilities agreement (the \"Arctic Fish Facilities Agreement\") with Danske Bank, DNB, Nordea and Rabobank. The Arctic Fish Facilities Agreement comprises a EUR 120 million term loan and a EUR 50 million revolving credit facility to finance day-to-day operations and future growth of the company. The term loan will be repayable by quarterly instalments of EUR 3 million beginning in December 2025, and the facilities have final maturity in November 2027 following exercising of a one-year extension option during 2024. The agreement includes a further one-year extension option providing flexibility for the parties to extend the final maturity of the facilities until 2028 by mutual agreement.
Cash movements financing activities
CASH MOVEMENTS FINANCING ACTIVITIES (EUR MILLION) | INTEREST-BEARING DEBT | DERIVATIVES |
Balance at January 1, 2024 | 2\u00a0092.6 | 6.3 |
Proceeds from loans and borrowings | 55.4 | \u2014 |
Total changes from financing cash flows | 55.4 | \u2014 |
The effect of changes in foreign exchange rates | 10.8 | \u2014 |
Changes in fair value | \u2014 | 1.8 |
Liability-related | 10.8 | 1.8 |
Capitalised borrowing cost | -1.5 | \u2014 |
Interest expense | 115.0 | 0.9 |
Interest paid | -115.0 | -0.9 |
Total liability-related other changes | -1.5 | \u2014 |
Balance at December 31, 2024 | 2\u00a0157.3 | 8.1 |
In addition Mowi has paid EUR 25.5 million in interest expenses for leasing during 2024. For cash details in regards to leasing, please see note 29.
CASH MOVEMENTS FINANCING ACTIVITIES (EUR MILLION) | \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 INTEREST-BEARING DEBT | DERIVATIVES |
Balance at January 1, 2023 | 1\u00a0937.4 | 11.9 |
Proceeds from loans and borrowings | 158.9 | \u2014 |
Total changes from financing cash flows | 158.9 | \u2014 |
The effect of changes in foreign exchange rates | -10.0 | \u2014 |
Changes in fair value | \u2014 | -5.6 |
Liability-related | -10.0 | -5.6 |
Capitalised borrowing cost | 4.2 | \u2014 |
Interest expense | 95.0 | 0.3 |
Interest paid | -92.4 | -0.3 |
Total liability-related other changes | 6.8 | \u2014 |
Balance at December 31, 2023 | 2\u00a0093.1 | 6.3 |
FINANCIAL INSTRUMENTS IMPACT ON COMPREHENSIVE INCOME (EUR MILLION) | 2024 | 2023 |
Interest expenses | -113.9 | -95.2 |
Interest expenses leasing | -25.5 | -14.3 |
Amortised interest cost | -4.1 | -3.6 |
Interest expenses | -143.5 | -113.1 |
Net currency effects on interest-bearing debt | -0.9 | 14.4 |
Net currency effects on cash, trade receivables and trade payables | -2.2 | -6.7 |
Gain/loss on short-term currency swaps | 7.2 | 15.7 |
Gain/loss on long-term currency swaps | -10.8 | -5.2 |
Currency effects on leasing (IFRS 16) | 15.7 | 17.6 |
Net currency effects | 9.0 | 35.9 |
Interest income | 12.3 | 6.5 |
Gain/loss on salmon derivatives non-operational | \u2014 | -0.2 |
Change in fair value other financial instruments | -0.7 | 0.7 |
Change in fair value other shares | \u2014 | -0.3 |
Net other financial items | -4.0 | -11.9 |
Other financial items | 7.6 | -5.1 |
Total financial items | -126.9 | -82.3 |
CATEGORIES OF FINANCIAL INSTRUMENTS IN THE STATEMENT OF FINANCIAL POSITION (EUR MILLION) | FINANCIAL ASSETS AND LIABILITIES | |||
DECEMBER 31, 2024 | DEBT INSTRUMENTS AT AMORTISED COST | FINANCIAL INSTRUMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS | NON-FINANCIAL ASSETS AND LIABILITIES | TOTAL |
Non-current assets | ||||
Other non-current financial assets | \u2014 | 2.8 | \u2014 | 2.8 |
Current assets | ||||
Trade receivables | 661.5 | \u2014 | \u2014 | 661.5 |
Other receivables | 106.8 | \u2014 | 149.1 | 255.9 |
Other current financial assets | \u2014 | 7.4 | \u2014 | 7.4 |
Cash | 290.2 | \u2014 | \u2014 | 290.2 |
Non-current liabilities | ||||
Non-current interest-bearing debt | -1\u00a0957.3 | \u2014 | \u2014 | -1\u00a0957.3 |
Current liabilities | ||||
Current interest-bearing debt | -200.0 | \u2014 | \u2014 | -200.0 |
Trade payables | -517.9 | \u2014 | \u2014 | -517.9 |
Other current financial liabilities | \u2014 | -8.1 | \u2014 | -8.1 |
Other current liabilities | -162.5 | \u2014 | -186.0 | -348.6 |
Total | -1\u00a0779.2 | 2.1 | ||
Fair value1) | -1\u00a0782.1 | 2.1 |
1) Difference in fair value is related to Non-current interest-bearing debt (Bond).
CATEGORIES OF FINANCIAL INSTRUMENTS IN THE STATEMENT OF FINANCIAL POSITION (EUR MILLION) | FINANCIAL ASSETS AND LIABILITIES | |||
31 DECEMBER 2023 | DEBT INSTRUMENTS AT AMORTISED COST | FINANCIAL INSTRUMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS | NON-FINANCIAL ASSETS AND LIABILITIES | TOTAL |
Non-current assets | ||||
Other non-current financial assets | \u2014 | 2.7 | \u2014 | 2.7 |
Current assets | ||||
Trade receivables | 654.3 | \u2014 | \u2014 | 654.3 |
Other receivables | 148.5 | \u2014 | 105.2 | 253.7 |
Other current financial assets | \u2014 | 19.9 | \u2014 | 19.9 |
Cash | 302.9 | \u2014 | \u2014 | 302.9 |
Non-current liabilities | ||||
Non-current interest-bearing debt | -2\u00a0093.0 | \u2014 | \u2014 | -2\u00a0093.0 |
Current liabilities | ||||
Current interest-bearing debt | -0.1 | \u2014 | \u2014 | -0.1 |
Trade payables | -560.7 | \u2014 | \u2014 | -560.7 |
Other current financial liabilities | \u2014 | -6.3 | \u2014 | -6.3 |
Other current liabilities | -144.5 | \u2014 | -149.4 | -293.9 |
Total | -1\u00a0692.6 | 16.3 | ||
Fair value1) | -1\u00a0693.8 | 16.3 |
1) Difference in fair value is related to Non-current interest-bearing debt (Bond).
There has not been any reclassification between the categories of financial assets or liabilities in 2024, or 2023. Details regarding the criteria for recognition and the basis for measurement of each class of financial instrument are disclosed in Note 2 Significant accounting principles.
OTHER CURRENT FINANCIAL ASSETS (EUR MILLION) | 2024 | 2023 |
Market value of other financial instruments | \u2014 | 3.7 |
Currency swaps | 7.4 | 16.2 |
Other current financial assets as of 31.12 | 7.4 | 19.9 |
OTHER CURRENT FINANCIAL LIABILITIES (EUR MILLION) | 2024 | 2023 |
Currency swaps | 6.4 | 5.3 |
Interest rate swaps | 0.7 | 1.0 |
Cross currency swap | 1.0 | \u2014 |
Other current financial liabilities as of 31.12 | 8.1 | 6.3 |
Fair value of financial instruments
Fair value of financial instruments carried at amortised cost
The Group considers that the carrying amount of financial assets and liabilities recognised at amortised cost in the financial statements approximates their fair value.
Fair value measurements recognised in the statement of financial position
Financial instruments that are measured at fair value subsequent to initial recognition are grouped into a hierarchy of three different levels, based on the degree to which the fair value is observable:
Level 1:
Fair value determined directly by reference to published quotations.
Level 2:
Fair value estimated using valuation technique based on input other than quoted prices included in level 1 that are observable.
Level 3:
Fair value estimated using a valuation technique based on unobservable data.
ASSETS AND LIABILITIES MEASURED AT FAIR VALUE (EUR MILLION) | 2024 | 2023 | ||||
LEVEL 1 | LEVEL 2 | LEVEL 3 | LEVEL 1 | LEVEL 2 | LEVEL 3 | |
Financial assets/liabilities to fair value through profit or loss: | ||||||
Other financial instruments | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 |
Current currency swaps | \u2014 | 7.4 | \u2014 | \u2014 | 16.2 | \u2014 |
Interest swaps | \u2014 | -0.7 | \u2014 | \u2014 | -1.0 | \u2014 |
Current currency swaps | \u2014 | -6.4 | \u2014 | \u2014 | -5.3 | \u2014 |
BONDS AT AMORTISED COST, FAIR VALUE | \u2014 | -644.6 | \u2014 | \u2014 | -350.0 | \u2014 |
FINANCIAL INSTRUMENTS IMPACT ON COMPREHENSIVE INCOME (EUR MILLION) | 2024 | 2023 |
Interest expenses | -113.9 | -95.2 |
Interest expenses leasing | -25.5 | -14.3 |
Amortised interest cost | -4.1 | -3.6 |
Interest expenses | -143.5 | -113.1 |
Net currency effects on interest-bearing debt | -0.9 | 14.4 |
Net currency effects on cash, trade receivables and trade payables | -2.2 | -6.7 |
Gain/loss on short-term currency swaps | 7.2 | 15.7 |
Gain/loss on long-term currency swaps | -10.8 | -5.2 |
Currency effects on leasing (IFRS 16) | 15.7 | 17.6 |
Net currency effects | 9.0 | 35.9 |
Interest income | 12.3 | 6.5 |
Gain/loss on salmon derivatives non-operational | \u2014 | -0.2 |
Change in fair value other financial instruments | -0.7 | 0.7 |
Change in fair value other shares | \u2014 | -0.3 |
Net other financial items | -4.0 | -11.9 |
Other financial items | 7.6 | -5.1 |
Total financial items | -126.9 | -82.3 |
FINANCIAL INSTRUMENTS IMPACT ON COMPREHENSIVE INCOME (EUR MILLION) | 2024 | 2023 |
Interest expenses | -113.9 | -95.2 |
Interest expenses leasing | -25.5 | -14.3 |
Amortised interest cost | -4.1 | -3.6 |
Interest expenses | -143.5 | -113.1 |
Net currency effects on interest-bearing debt | -0.9 | 14.4 |
Net currency effects on cash, trade receivables and trade payables | -2.2 | -6.7 |
Gain/loss on short-term currency swaps | 7.2 | 15.7 |
Gain/loss on long-term currency swaps | -10.8 | -5.2 |
Currency effects on leasing (IFRS 16) | 15.7 | 17.6 |
Net currency effects | 9.0 | 35.9 |
Interest income | 12.3 | 6.5 |
Gain/loss on salmon derivatives non-operational | \u2014 | -0.2 |
Change in fair value other financial instruments | -0.7 | 0.7 |
Change in fair value other shares | \u2014 | -0.3 |
Net other financial items | -4.0 | -11.9 |
Other financial items | 7.6 | -5.1 |
Total financial items | -126.9 | -82.3 |
FINANCIAL INSTRUMENTS IMPACT ON COMPREHENSIVE INCOME (EUR MILLION) | 2024 | 2023 |
Interest expenses | -113.9 | -95.2 |
Interest expenses leasing | -25.5 | -14.3 |
Amortised interest cost | -4.1 | -3.6 |
Interest expenses | -143.5 | -113.1 |
Net currency effects on interest-bearing debt | -0.9 | 14.4 |
Net currency effects on cash, trade receivables and trade payables | -2.2 | -6.7 |
Gain/loss on short-term currency swaps | 7.2 | 15.7 |
Gain/loss on long-term currency swaps | -10.8 | -5.2 |
Currency effects on leasing (IFRS 16) | 15.7 | 17.6 |
Net currency effects | 9.0 | 35.9 |
Interest income | 12.3 | 6.5 |
Gain/loss on salmon derivatives non-operational | \u2014 | -0.2 |
Change in fair value other financial instruments | -0.7 | 0.7 |
Change in fair value other shares | \u2014 | -0.3 |
Net other financial items | -4.0 | -11.9 |
Other financial items | 7.6 | -5.1 |
Total financial items | -126.9 | -82.3 |
FINANCIAL INSTRUMENTS IMPACT ON COMPREHENSIVE INCOME (EUR MILLION) | 2024 | 2023 |
Interest expenses | -113.9 | -95.2 |
Interest expenses leasing | -25.5 | -14.3 |
Amortised interest cost | -4.1 | -3.6 |
Interest expenses | -143.5 | -113.1 |
Net currency effects on interest-bearing debt | -0.9 | 14.4 |
Net currency effects on cash, trade receivables and trade payables | -2.2 | -6.7 |
Gain/loss on short-term currency swaps | 7.2 | 15.7 |
Gain/loss on long-term currency swaps | -10.8 | -5.2 |
Currency effects on leasing (IFRS 16) | 15.7 | 17.6 |
Net currency effects | 9.0 | 35.9 |
Interest income | 12.3 | 6.5 |
Gain/loss on salmon derivatives non-operational | \u2014 | -0.2 |
Change in fair value other financial instruments | -0.7 | 0.7 |
Change in fair value other shares | \u2014 | -0.3 |
Net other financial items | -4.0 | -11.9 |
Other financial items | 7.6 | -5.1 |
Total financial items | -126.9 | -82.3 |
FINANCIAL INSTRUMENTS IMPACT ON COMPREHENSIVE INCOME (EUR MILLION) | 2024 | 2023 |
Interest expenses | -113.9 | -95.2 |
Interest expenses leasing | -25.5 | -14.3 |
Amortised interest cost | -4.1 | -3.6 |
Interest expenses | -143.5 | -113.1 |
Net currency effects on interest-bearing debt | -0.9 | 14.4 |
Net currency effects on cash, trade receivables and trade payables | -2.2 | -6.7 |
Gain/loss on short-term currency swaps | 7.2 | 15.7 |
Gain/loss on long-term currency swaps | -10.8 | -5.2 |
Currency effects on leasing (IFRS 16) | 15.7 | 17.6 |
Net currency effects | 9.0 | 35.9 |
Interest income | 12.3 | 6.5 |
Gain/loss on salmon derivatives non-operational | \u2014 | -0.2 |
Change in fair value other financial instruments | -0.7 | 0.7 |
Change in fair value other shares | \u2014 | -0.3 |
Net other financial items | -4.0 | -11.9 |
Other financial items | 7.6 | -5.1 |
Total financial items | -126.9 | -82.3 |
FINANCIAL INSTRUMENTS IMPACT ON COMPREHENSIVE INCOME (EUR MILLION) | 2024 | 2023 |
Interest expenses | -113.9 | -95.2 |
Interest expenses leasing | -25.5 | -14.3 |
Amortised interest cost | -4.1 | -3.6 |
Interest expenses | -143.5 | -113.1 |
Net currency effects on interest-bearing debt | -0.9 | 14.4 |
Net currency effects on cash, trade receivables and trade payables | -2.2 | -6.7 |
Gain/loss on short-term currency swaps | 7.2 | 15.7 |
Gain/loss on long-term currency swaps | -10.8 | -5.2 |
Currency effects on leasing (IFRS 16) | 15.7 | 17.6 |
Net currency effects | 9.0 | 35.9 |
Interest income | 12.3 | 6.5 |
Gain/loss on salmon derivatives non-operational | \u2014 | -0.2 |
Change in fair value other financial instruments | -0.7 | 0.7 |
Change in fair value other shares | \u2014 | -0.3 |
Net other financial items | -4.0 | -11.9 |
Other financial items | 7.6 | -5.1 |
Total financial items | -126.9 | -82.3 |
Fair value of financial instruments
Fair value of financial instruments carried at amortised cost
The Group considers that the carrying amount of financial assets and liabilities recognised at amortised cost in the financial statements approximates their fair value.
Fair value measurements recognised in the statement of financial position
Financial instruments that are measured at fair value subsequent to initial recognition are grouped into a hierarchy of three different levels, based on the degree to which the fair value is observable:
Level 1:
Fair value determined directly by reference to published quotations.
Level 2:
Fair value estimated using valuation technique based on input other than quoted prices included in level 1 that are observable.
Level 3:
Fair value estimated using a valuation technique based on unobservable data.
ASSETS AND LIABILITIES MEASURED AT FAIR VALUE (EUR MILLION) | 2024 | 2023 | ||||
LEVEL 1 | LEVEL 2 | LEVEL 3 | LEVEL 1 | LEVEL 2 | LEVEL 3 | |
Financial assets/liabilities to fair value through profit or loss: | ||||||
Other financial instruments | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 |
Current currency swaps | \u2014 | 7.4 | \u2014 | \u2014 | 16.2 | \u2014 |
Interest swaps | \u2014 | -0.7 | \u2014 | \u2014 | -1.0 | \u2014 |
Current currency swaps | \u2014 | -6.4 | \u2014 | \u2014 | -5.3 | \u2014 |
BONDS AT AMORTISED COST, FAIR VALUE | \u2014 | -644.6 | \u2014 | \u2014 | -350.0 | \u2014 |
Fair value of financial instruments
Fair value of financial instruments carried at amortised cost
The Group considers that the carrying amount of financial assets and liabilities recognised at amortised cost in the financial statements approximates their fair value.
Fair value measurements recognised in the statement of financial position
Financial instruments that are measured at fair value subsequent to initial recognition are grouped into a hierarchy of three different levels, based on the degree to which the fair value is observable:
Level 1:
Fair value determined directly by reference to published quotations.
Level 2:
Fair value estimated using valuation technique based on input other than quoted prices included in level 1 that are observable.
Level 3:
Fair value estimated using a valuation technique based on unobservable data.
ASSETS AND LIABILITIES MEASURED AT FAIR VALUE (EUR MILLION) | 2024 | 2023 | ||||
LEVEL 1 | LEVEL 2 | LEVEL 3 | LEVEL 1 | LEVEL 2 | LEVEL 3 | |
Financial assets/liabilities to fair value through profit or loss: | ||||||
Other financial instruments | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 |
Current currency swaps | \u2014 | 7.4 | \u2014 | \u2014 | 16.2 | \u2014 |
Interest swaps | \u2014 | -0.7 | \u2014 | \u2014 | -1.0 | \u2014 |
Current currency swaps | \u2014 | -6.4 | \u2014 | \u2014 | -5.3 | \u2014 |
BONDS AT AMORTISED COST, FAIR VALUE | \u2014 | -644.6 | \u2014 | \u2014 | -350.0 | \u2014 |
ASSETS AND LIABILITIES MEASURED AT FAIR VALUE (EUR MILLION) | 2024 | 2023 | ||||
LEVEL 1 | LEVEL 2 | LEVEL 3 | LEVEL 1 | LEVEL 2 | LEVEL 3 | |
Financial assets/liabilities to fair value through profit or loss: | ||||||
Other financial instruments | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 |
Current currency swaps | \u2014 | 7.4 | \u2014 | \u2014 | 16.2 | \u2014 |
Interest swaps | \u2014 | -0.7 | \u2014 | \u2014 | -1.0 | \u2014 |
Current currency swaps | \u2014 | -6.4 | \u2014 | \u2014 | -5.3 | \u2014 |
BONDS AT AMORTISED COST, FAIR VALUE | \u2014 | -644.6 | \u2014 | \u2014 | -350.0 | \u2014 |
Financial risk management
The Group monitors and manages financial risks arising from operations. These include currency risks, interest rate risk, credit risk and price/liquidity risk.
The Group seeks to manage these risks through operational measures or (where such measures are not available) through the use of financial derivatives.
A policy on the management of these risks has been approved by the Board of Directors. The policy includes principles on currency risk, interest rate risk, price risk, the use of financial instruments and other operational means as well as limits on the maximum and minimum levels of these exposures.
Currency risk
In the Mowi Group, several Business Units carry out a\u00a0large number of business transactions in currencies different from the domestic currency. For the Group, the relative importance of these transactions is substantially larger on the revenue side than on the cost side. To mitigate the potential fluctuation effects on its cash flows, the Group maintains a foreign exchange strategy designated to manage these exposures both in the short and long term. For each of Mowi\u2019s units, the Group has defined a\u00a0hedging strategy not designated for hedge accounting. According to the hedging strategy, units located in the following regions generate cash flow in currencies (main hedging currencies) according to the below table.
REGION | HEDGING CURRENCY |
Europe ex. UK | EUR |
UK | GBP |
Americas | USD |
Asia | USD |
For some units the main hedging currency is different from the functional currency.
Transaction exposures arise from firm commitments made to transact in a currency different from the main currency. Each transaction exposure depends on the duration of the associated commitment, but these are normally be of relatively short duration. Hedging transactions undertaken to manage transaction exposures are referred to as transaction hedges.
Through hedging of transaction exposures, each Business Unit aims to ensure that its net cash flows in currencies other than its main hedging currency are hedged towards this currency. Further exposures arise from structural imbalances between the main currencies on the revenue side and those on the expense side. These imbalances are predominantly a result of production taking place in a different country from that in which the product is sold. Due to their structural nature, such exposures are of a longer duration than transaction exposures and are therefore quantified based on estimates of future revenues and expenses. For these purposes, the focus is on the underlying currency structure of the individual revenue and cost item while the actual currency in which transactions are invoiced is of lesser importance.
The Mowi Group normally has a net positive cash flow exposure towards EUR, GBP, USD and JPY and a net negative cash flow exposure towards NOK, CAD and CLP. To hedge Group cash flows against exchange rate fluctuations Mowi has a policy for long-term hedging of the most predominant net exposures. The Group currently hedges up to 30% of its underlying exposure between EUR/NOK and USD/CAD with a horizon of up to two years.
As of December 31, 2024 the Group held a portfolio of derivative instruments designed to mitigate transaction and cash flow exposure with a total contract value of EUR 924.7 million (EUR 922.5 million). Instruments equivalent to 95% (93%) of the contract value mature in 2025 and no instrument matures after December 2027. The portfolio had a net market value of EUR 1.0 million (EUR 10.9 million) at year end.
Currency exposure in the statement of financial position
As a consequence of the Group\u2019s net cash flows being generated in EUR, GBP and USD, the interest-bearing debt should reflect this currency structure. On December\u00a031, 2024, the portfolio was in line with policy.
CURRENCY STRUCTURE OF NET INTEREST-BEARING DEBT (EUR MILLION) | NOK | USD | EUR | GBP | JPY | DKK | CAD | PLN | OTHER | TOTAL |
Cash and cash equivalents | 46.9 | 54.8 | 130.1 | 21.7 | 22.8 | 12.5 | -4.1 | -9.2 | 14.7 | 290.2 |
Current interest-bearing debt | \u2014 | \u2014 | 200.0 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | 200.0 |
Non-current interest-bearing debt | 67.9 | 57.9 | 1\u00a0783.2 | 48.3 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | 1\u00a0957.3 |
Net interest-bearing debt | 21.0 | 3.1 | 1\u00a0853.1 | 26.6 | -22.8 | -12.5 | 4.1 | 9.2 | -14.7 | 1\u00a0867.1 |
The carrying amount of interest-bearing debt has been reduced by EUR 5.7 million (EUR 6.5 million) in transaction costs. There are no significant differences between the carrying amount and the fair value of non-current interest-bearing debt and leasing.
Sensitivity analysis - change in exchange rates impact on result
The main sources of sensitivity to exchange rate movements are long-term EUR/NOK forward currency contracts and loans in NOK, USD and GBP under the multicurrency revolving credit facility. Based on the exposure as of December\u00a031, 2024, the effect of a 15% change in exchange rates on the long-term currency hedges and the multicurrency loan positions has been estimated. As hedge accounting is not used there is no impact on other comprehensive income.
CURRENCY PAIR (EUR MILLION) | EUR/NOK | EUR/USD | EUR/GBP | |
Effect in EUR from a 15% increase in the value of | EUR | EUR | EUR | |
Effect on profit before tax | -24.4 | 7.6 | 6.3 |
Interest rate risk
Mowi ASA shall over time hedge 0%-35% of the Group\u2019s long-term interest bearing debt by currency with fixed interest or interest rate derivatives for the first 5 years, and 0% thereafter. Interest-bearing debt includes external interest-bearing debt and leasing in the parent company or subsidiaries. The interest rate hedges shall be based on the targeted currency composition. Interest rate exposure in other currencies than EUR, USD, GBP and NOK shall not be hedged. All interest rate hedging shall be executed from the parent company. At year end 2024 the Group did not have any interest rate swaps outstanding for interest rate hedging.
Based on the debt and interest rate swaps outstanding as of December\u00a031, 2024 a 0.50% point parallel increase in all relevant yield curves would result in an estimated increase in the Group's annual interest cost of EUR 9.8 million (EUR 10.5 million).
Credit risk
The Group trades only with recognised, creditworthy third parties. It is the Group\u2019s policy that all customers who wish to trade on credit terms are subject to credit verification procedures. In addition, receivable balances are monitored on an ongoing basis and as a rule the Group\u2019s trade receivables are fully credit insured. The Group monitors exposure towards individual customers closely and is not substantially exposed to any individual customer or contractual partner as of December\u00a031, 2024. The maximum exposure to credit risk at the reporting date is the carrying value of trade receivables, with reference to Note 17. The Group considers the concentration of risk with respect to trade receivables as low, as its customers are located in various jurisdictions and operate in different markets.
The Group only enters into derivative transactions with counterparties with an established business relationship to the Group.
Price/liquidity risk
The Group is continuously monitoring liquidity and estimates expected liquidity development on the basis of budgets and monthly updated forecasts from the business units. Mowi\u2019s financial position and development depend significantly on spot price developments for salmon, and these prices have historically been volatile. As such Mowi is exposed to movements in supply and demand for salmon. Mowi has to some extent mitigated its exposure to spot prices by entering into bilateral fixed price/volume contracts with its customers. The contract share has normally varied between 20% and 50% of our sold volume, however hedged volumes can increase up to 65% under special circumstances, and the duration of contracts has typically been three to eighteen months. Furthermore Mowi reduces its exposure to spot price movements through value added processing activities and tailoring of products for its customers. Other key liquidity risks are fluctuations in production and harvest volumes, biological issues, and changes in the feed price, feed being the most important individual factor on the cost side. Feed costs are correlated to the marine and agricultural commodity prices of the ingredients.
A portion of the Group\u2019s trade payables are included in the Group\u2019s supply chain financing agreements and are, thus, with a few finance institutions as counterparties, rather than individual suppliers. This results in the Group being required to settle a certain amount with a single counterparty, rather than less significant amounts with several counterparties. Management does not consider the supply chain finance agreements to result in excessive concentrations of liquidity risk.
Mowi\u2019s aim is to maintain a balance between long-term financing and flexibility by using credit facilities, new borrowings and bonds.
MATURITY PROFILE OF THE FINANCIAL LIABILITIES AND DERIVATIVES BASED ON CONTRACTUAL UNDISCOUNTED PAYMENTS, INCLUDING INTEREST: 2024 (EUR MILLION) | CARRYING AMOUNT | CONTRACTUAL CASH FLOWS | WITHIN 1 YEAR | 1 -2 YEARS | 2 - 5 YEARS | MORE THAN 5 YEARS |
Non-derivative financial liabilities | ||||||
Syndicated loan | 1\u00a0373.4 | -1\u00a0459.7 | -50.0 | -1\u00a0409.7 | \u2014 | \u2014 |
Unsecured green bond NO 0013220897 | 213.6 | -247.6 | -8.2 | -7.5 | -231.9 | \u2014 |
Unsecured green bond NO 0013220905 | 84.0 | -109.8 | -3.5 | -3.2 | -9.7 | -93.4 |
Unsecured green bond NO 0010874050 | 201.6 | -202.4 | -202.4 | \u2014 | \u2014 | \u2014 |
Unsecured schuldschein loan | 151.6 | -159.6 | -6.6 | -153.0 | \u2014 | \u2014 |
Arctic Fish syndicated loan | 137.9 | -161.2 | -11.8 | -20.6 | -128.8 | \u2014 |
Other debt | 0.7 | -0.7 | -0.1 | -0.2 | -0.1 | -0.4 |
Trade payables and other liabilities | 521.8 | -521.8 | -521.8 | \u2014 | \u2014 | \u2014 |
Derivative financial liabilities | ||||||
Cash flow instruments | 3.2 | -3.2 | -3.2 | \u2014 | \u2014 | \u2014 |
Transaction instruments | 3.2 | -3.2 | -2.8 | -0.2 | -0.1 | \u2014 |
Total financial liabilities1) | 2\u00a0691.0 | -2\u00a0869.2 | -810.4 | -1\u00a0594.4 | -370.6 | -93.8 |
MATURITY PROFILE OF THE FINANCIAL LIABILITIES AND DERIVATIVES BASED ON CONTRACTUAL UNDISCOUNTED PAYMENTS, INCLUDING INTEREST: 2023 (EUR MILLION) | CARRYING AMOUNT | CONTRACTUAL CASH FLOWS | WITHIN 1 YEAR | 1 -2 YEARS | 2 - 5 YEARS | MORE THAN 5 YEARS |
Non-derivative financial liabilities | ||||||
Syndicated loan | 1\u00a0617.9 | -1\u00a0795.2 | -73.3 | -61.0 | -1\u00a0661.0 | \u2014 |
Unsecured schuldschein loan | 150.7 | -167.8 | -8.2 | -6.7 | -153.0 | \u2014 |
Unsecured green bond NO 0010874050 | 201.4 | -212.9 | -10.7 | -202.2 | \u2014 | \u2014 |
Arctic Fish syndicated loan | 127.5 | -148.7 | -8.3 | -7.3 | -133.1 | \u2014 |
Other debt | 0.9 | -0.9 | -0.2 | -0.2 | -0.1 | -0.4 |
Trade payables and other liabilities | 560.7 | -560.7 | -560.7 | \u2014 | \u2014 | \u2014 |
Derivative financial liabilities | ||||||
Cash flow instruments | 0.1 | -0.1 | -0.1 | \u2014 | \u2014 | \u2014 |
Transaction instruments | 5.2 | -5.2 | -4.9 | -0.2 | -0.1 | \u2014 |
Total financial liabilities1) | 2\u00a0664.5 | -2\u00a0891.5 | -666.4 | -277.6 | -1\u00a0947.3 | -0.4 |
Leverage and Capital access (i.e. Capital management) refers to the process of acquiring and utilising capital in the most efficient manner compared to the available alternatives. The primary objective of the Group\u2019s capital management is to ensure access to capital contributing to satisfactory operations and maximum generation of shareholder value. The Group manages its capital structure and makes adjustments in light of changes in underlying economic conditions. Access to borrowed capital is continuously monitored and the Group has a continuous dialogue with its lenders. The syndicated loan facility sets forth an equity ratio as the only financial covenant. The remaining portfolio of interest bearing debt does not include more restrictive financial covenants. Mowi complied with the financial covenants in its loan agreements during and at the end of 2024. Details relating to the main loan programmes in the Group are described in Note 11.
Mowi intends to maintain an equity base suited to the characteristics of its operations, taking into consideration that fish farming is a cyclical business. At year-end 2024, the equity of Mowi amounted to EUR 4\u00a0005.6 million. The equity share, defined by equity/total assets, was at the same time 46.8%. Net interest bearing debt, defined as total interest-bearing debt less cash was EUR 1 867.1 million at year-end, above the long-term target of EUR 1 700 million, excluding effects of IFRS 16. The Board of Directors of Mowi ASA
considers the equity in the Group appropriate for the scale of the operation.
Mowi\u2019s ambition is to create long-term value for the shareholder through both positive share price development and a growing dividend in line with long-term earnings. In 2021 the Board decided to make dividend payments more predicable and transparent by operationalising the dividend policy and introducing ordinary and extraordinary dividends. The dividend policy states that:
\u2022The quarterly ordinary dividend shall under normal circumstances be at least 50% of underlying earnings per share (EPS).
\u2022Excess capital will be paid out as extraordinary dividends.
\u2022When deciding excess capital the Board of Directors will take into consideration expected cash flow, capital expenditure plans, financing requirements and appropriate financial flexibility. Further to this a long-term target level for net interest-bearing debt is determined, reviewed and updated on a regular basis.
\u2022Shareholder returns are distributed primarily as cash dividends with the option of using share buybacks as a complementary supplement on an ad-hoc basis.
The Board of Directors of Mowi ASA has been given proxies from the Annual General Meeting on 30 May 2024 for the following:
\u2022(1) To approve the distribution of dividends based on the Company\u2019s annual accounts for 2024. The authority may be used to approve the distribution of dividends up to an aggregate amount of NOK 7 500 000 000. The authority is valid for dividends from the date of the Annual General Meeting on 30 May 2024 until the AGM in 2025, however no later than June 30, 2025.
\u2022(2) To purchase up to 51 711 109 shares in the Company (representing 10% of the shares in issue at the time) during the period up until the AGM in 2025, however no later than June 30, 2025.
\u2022(3a) To increase the Company\u2019s share capital by up to 51 711 109 shares (representing 10% of the shares in issue at the time) provided that the the combined number of shares that are issued pursuant to this authorisation and the authorisation in item 3b below shall not in aggregate exceed 10% of the Company's current share capital. The authority did not define the purpose(s) of such a capital increase. The authority expires at the AGM in 2025, however no later than June 30, 2025.
\u2022(3b) To take up convertible bond loans of up to NOK 3 200 million (par value), convertible to a share capital equivalent of up to 51 711 109 shares provided that the the combined number of shares that are issued pursuant to this authorisation and the authorisation in item 3a above shall not in aggregate exceed 10% of the Company's current share capital. The authority expires at the AGM in 2025, however no later than June 30, 2025.
The Group\u2019s principal financial liabilities, other than loans, consist of non-convertible bonds, derivatives and trade payables. These financial liabilities constitute the majority of the Group\u2019s third party financing. The Group holds financial assets such as trade receivables, cash and shares.
The Group uses financial derivatives, mainly currency forward contracts, interest rate swaps and financial salmon futures, using large international banks and Euronext as counterparts. The purpose of these derivatives is to manage the interest rate, currency and salmon price risks arising from the operations of the Group. With the exception of financial salmon futures, no trading activities in financial instruments are undertaken. On a selective basis, the Group also enters into other financial derivatives such as equity forward contracts.
Details regarding significant accounting policies for financial assets and liabilities are disclosed in Note 2 Significant accounting policies.
Mowi\u2019s ambition is to create long-term value for the shareholder through both positive share price development and a growing dividend in line with long-term earnings. In 2021 the Board decided to make dividend payments more predicable and transparent by operationalising the dividend policy and introducing ordinary and extraordinary dividends. The dividend policy states that:
\u2022The quarterly ordinary dividend shall under normal circumstances be at least 50% of underlying earnings per share (EPS).
\u2022Excess capital will be paid out as extraordinary dividends.
\u2022When deciding excess capital the Board of Directors will take into consideration expected cash flow, capital expenditure plans, financing requirements and appropriate financial flexibility. Further to this a long-term target level for net interest-bearing debt is determined, reviewed and updated on a regular basis.
\u2022Shareholder returns are distributed primarily as cash dividends with the option of using share buybacks as a complementary supplement on an ad-hoc basis.
The Board of Directors of Mowi ASA has been given proxies from the Annual General Meeting on 30 May 2024 for the following:
\u2022(1) To approve the distribution of dividends based on the Company\u2019s annual accounts for 2024. The authority may be used to approve the distribution of dividends up to an aggregate amount of NOK 7 500 000 000. The authority is valid for dividends from the date of the Annual General Meeting on 30 May 2024 until the AGM in 2025, however no later than June 30, 2025.
Currency risk
In the Mowi Group, several Business Units carry out a\u00a0large number of business transactions in currencies different from the domestic currency. For the Group, the relative importance of these transactions is substantially larger on the revenue side than on the cost side. To mitigate the potential fluctuation effects on its cash flows, the Group maintains a foreign exchange strategy designated to manage these exposures both in the short and long term. For each of Mowi\u2019s units, the Group has defined a\u00a0hedging strategy not designated for hedge accounting. According to the hedging strategy, units located in the following regions generate cash flow in currencies (main hedging currencies) according to the below table.
REGION | HEDGING CURRENCY |
Europe ex. UK | EUR |
UK | GBP |
Americas | USD |
Asia | USD |
For some units the main hedging currency is different from the functional currency.
Transaction exposures arise from firm commitments made to transact in a currency different from the main currency. Each transaction exposure depends on the duration of the associated commitment, but these are normally be of relatively short duration. Hedging transactions undertaken to manage transaction exposures are referred to as transaction hedges.
Through hedging of transaction exposures, each Business Unit aims to ensure that its net cash flows in currencies other than its main hedging currency are hedged towards this currency. Further exposures arise from structural imbalances between the main currencies on the revenue side and those on the expense side. These imbalances are predominantly a result of production taking place in a different country from that in which the product is sold. Due to their structural nature, such exposures are of a longer duration than transaction exposures and are therefore quantified based on estimates of future revenues and expenses. For these purposes, the focus is on the underlying currency structure of the individual revenue and cost item while the actual currency in which transactions are invoiced is of lesser importance.
The Mowi Group normally has a net positive cash flow exposure towards EUR, GBP, USD and JPY and a net negative cash flow exposure towards NOK, CAD and CLP. To hedge Group cash flows against exchange rate fluctuations Mowi has a policy for long-term hedging of the most predominant net exposures. The Group currently hedges up to 30% of its underlying exposure between EUR/NOK and USD/CAD with a horizon of up to two years.
As of December 31, 2024 the Group held a portfolio of derivative instruments designed to mitigate transaction and cash flow exposure with a total contract value of EUR 924.7 million (EUR 922.5 million). Instruments equivalent to 95% (93%) of the contract value mature in 2025 and no instrument matures after December 2027. The portfolio had a net market value of EUR 1.0 million (EUR 10.9 million) at year end.
Currency exposure in the statement of financial position
As a consequence of the Group\u2019s net cash flows being generated in EUR, GBP and USD, the interest-bearing debt should reflect this currency structure. On December\u00a031, 2024, the portfolio was in line with policy.
CURRENCY STRUCTURE OF NET INTEREST-BEARING DEBT (EUR MILLION) | NOK | USD | EUR | GBP | JPY | DKK | CAD | PLN | OTHER | TOTAL |
Cash and cash equivalents | 46.9 | 54.8 | 130.1 | 21.7 | 22.8 | 12.5 | -4.1 | -9.2 | 14.7 | 290.2 |
Current interest-bearing debt | \u2014 | \u2014 | 200.0 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | 200.0 |
Non-current interest-bearing debt | 67.9 | 57.9 | 1\u00a0783.2 | 48.3 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | 1\u00a0957.3 |
Net interest-bearing debt | 21.0 | 3.1 | 1\u00a0853.1 | 26.6 | -22.8 | -12.5 | 4.1 | 9.2 | -14.7 | 1\u00a0867.1 |
The carrying amount of interest-bearing debt has been reduced by EUR 5.7 million (EUR 6.5 million) in transaction costs. There are no significant differences between the carrying amount and the fair value of non-current interest-bearing debt and leasing.
Sensitivity analysis - change in exchange rates impact on result
The main sources of sensitivity to exchange rate movements are long-term EUR/NOK forward currency contracts and loans in NOK, USD and GBP under the multicurrency revolving credit facility. Based on the exposure as of December\u00a031, 2024, the effect of a 15% change in exchange rates on the long-term currency hedges and the multicurrency loan positions has been estimated. As hedge accounting is not used there is no impact on other comprehensive income.
CURRENCY PAIR (EUR MILLION) | EUR/NOK | EUR/USD | EUR/GBP | |
Effect in EUR from a 15% increase in the value of | EUR | EUR | EUR | |
Effect on profit before tax | -24.4 | 7.6 | 6.3 |
Interest rate risk
Mowi ASA shall over time hedge 0%-35% of the Group\u2019s long-term interest bearing debt by currency with fixed interest or interest rate derivatives for the first 5 years, and 0% thereafter. Interest-bearing debt includes external interest-bearing debt and leasing in the parent company or subsidiaries. The interest rate hedges shall be based on the targeted currency composition. Interest rate exposure in other currencies than EUR, USD, GBP and NOK shall not be hedged. All interest rate hedging shall be executed from the parent company. At year end 2024 the Group did not have any interest rate swaps outstanding for interest rate hedging.
Credit risk
The Group trades only with recognised, creditworthy third parties. It is the Group\u2019s policy that all customers who wish to trade on credit terms are subject to credit verification procedures. In addition, receivable balances are monitored on an ongoing basis and as a rule the Group\u2019s trade receivables are fully credit insured. The Group monitors exposure towards individual customers closely and is not substantially exposed to any individual customer or contractual partner as of December\u00a031, 2024. The maximum exposure to credit risk at the reporting date is the carrying value of trade receivables, with reference to Note 17. The Group considers the concentration of risk with respect to trade receivables as low, as its customers are located in various jurisdictions and operate in different markets.
The Group only enters into derivative transactions with counterparties with an established business relationship to the Group.
Price/liquidity risk
The Group is continuously monitoring liquidity and estimates expected liquidity development on the basis of budgets and monthly updated forecasts from the business units. Mowi\u2019s financial position and development depend significantly on spot price developments for salmon, and these prices have historically been volatile. As such Mowi is exposed to movements in supply and demand for salmon. Mowi has to some extent mitigated its exposure to spot prices by entering into bilateral fixed price/volume contracts with its customers. The contract share has normally varied between 20% and 50% of our sold volume, however hedged volumes can increase up to 65% under special circumstances, and the duration of contracts has typically been three to eighteen months. Furthermore Mowi reduces its exposure to spot price movements through value added processing activities and tailoring of products for its customers. Other key liquidity risks are fluctuations in production and harvest volumes, biological issues, and changes in the feed price, feed being the most important individual factor on the cost side. Feed costs are correlated to the marine and agricultural commodity prices of the ingredients.
A portion of the Group\u2019s trade payables are included in the Group\u2019s supply chain financing agreements and are, thus, with a few finance institutions as counterparties, rather than individual suppliers. This results in the Group being required to settle a certain amount with a single counterparty, rather than less significant amounts with several counterparties. Management does not consider the supply chain finance agreements to result in excessive concentrations of liquidity risk.
Mowi\u2019s aim is to maintain a balance between long-term financing and flexibility by using credit facilities, new borrowings and bonds.
MATURITY PROFILE OF THE FINANCIAL LIABILITIES AND DERIVATIVES BASED ON CONTRACTUAL UNDISCOUNTED PAYMENTS, INCLUDING INTEREST: 2024 (EUR MILLION) | CARRYING AMOUNT | CONTRACTUAL CASH FLOWS | WITHIN 1 YEAR | 1 -2 YEARS | 2 - 5 YEARS | MORE THAN 5 YEARS |
Non-derivative financial liabilities | ||||||
Syndicated loan | 1\u00a0373.4 | -1\u00a0459.7 | -50.0 | -1\u00a0409.7 | \u2014 | \u2014 |
Unsecured green bond NO 0013220897 | 213.6 | -247.6 | -8.2 | -7.5 | -231.9 | \u2014 |
Unsecured green bond NO 0013220905 | 84.0 | -109.8 | -3.5 | -3.2 | -9.7 | -93.4 |
Unsecured green bond NO 0010874050 | 201.6 | -202.4 | -202.4 | \u2014 | \u2014 | \u2014 |
Unsecured schuldschein loan | 151.6 | -159.6 | -6.6 | -153.0 | \u2014 | \u2014 |
Arctic Fish syndicated loan | 137.9 | -161.2 | -11.8 | -20.6 | -128.8 | \u2014 |
Other debt | 0.7 | -0.7 | -0.1 | -0.2 | -0.1 | -0.4 |
Trade payables and other liabilities | 521.8 | -521.8 | -521.8 | \u2014 | \u2014 | \u2014 |
Derivative financial liabilities | ||||||
Cash flow instruments | 3.2 | -3.2 | -3.2 | \u2014 | \u2014 | \u2014 |
Transaction instruments | 3.2 | -3.2 | -2.8 | -0.2 | -0.1 | \u2014 |
Total financial liabilities1) | 2\u00a0691.0 | -2\u00a0869.2 | -810.4 | -1\u00a0594.4 | -370.6 | -93.8 |
MATURITY PROFILE OF THE FINANCIAL LIABILITIES AND DERIVATIVES BASED ON CONTRACTUAL UNDISCOUNTED PAYMENTS, INCLUDING INTEREST: 2023 (EUR MILLION) | CARRYING AMOUNT | CONTRACTUAL CASH FLOWS | WITHIN 1 YEAR | 1 -2 YEARS | 2 - 5 YEARS | MORE THAN 5 YEARS |
Non-derivative financial liabilities | ||||||
Syndicated loan | 1\u00a0617.9 | -1\u00a0795.2 | -73.3 | -61.0 | -1\u00a0661.0 | \u2014 |
Unsecured schuldschein loan | 150.7 | -167.8 | -8.2 | -6.7 | -153.0 | \u2014 |
Unsecured green bond NO 0010874050 | 201.4 | -212.9 | -10.7 | -202.2 | \u2014 | \u2014 |
Arctic Fish syndicated loan | 127.5 | -148.7 | -8.3 | -7.3 | -133.1 | \u2014 |
Other debt | 0.9 | -0.9 | -0.2 | -0.2 | -0.1 | -0.4 |
Trade payables and other liabilities | 560.7 | -560.7 | -560.7 | \u2014 | \u2014 | \u2014 |
Derivative financial liabilities | ||||||
Cash flow instruments | 0.1 | -0.1 | -0.1 | \u2014 | \u2014 | \u2014 |
Transaction instruments | 5.2 | -5.2 | -4.9 | -0.2 | -0.1 | \u2014 |
Total financial liabilities1) | 2\u00a0664.5 | -2\u00a0891.5 | -666.4 | -277.6 | -1\u00a0947.3 | -0.4 |
MATURITY PROFILE OF THE FINANCIAL LIABILITIES AND DERIVATIVES BASED ON CONTRACTUAL UNDISCOUNTED PAYMENTS, INCLUDING INTEREST: 2024 (EUR MILLION) | CARRYING AMOUNT | CONTRACTUAL CASH FLOWS | WITHIN 1 YEAR | 1 -2 YEARS | 2 - 5 YEARS | MORE THAN 5 YEARS |
Non-derivative financial liabilities | ||||||
Syndicated loan | 1\u00a0373.4 | -1\u00a0459.7 | -50.0 | -1\u00a0409.7 | \u2014 | \u2014 |
Unsecured green bond NO 0013220897 | 213.6 | -247.6 | -8.2 | -7.5 | -231.9 | \u2014 |
Unsecured green bond NO 0013220905 | 84.0 | -109.8 | -3.5 | -3.2 | -9.7 | -93.4 |
Unsecured green bond NO 0010874050 | 201.6 | -202.4 | -202.4 | \u2014 | \u2014 | \u2014 |
Unsecured schuldschein loan | 151.6 | -159.6 | -6.6 | -153.0 | \u2014 | \u2014 |
Arctic Fish syndicated loan | 137.9 | -161.2 | -11.8 | -20.6 | -128.8 | \u2014 |
Other debt | 0.7 | -0.7 | -0.1 | -0.2 | -0.1 | -0.4 |
Trade payables and other liabilities | 521.8 | -521.8 | -521.8 | \u2014 | \u2014 | \u2014 |
Derivative financial liabilities | ||||||
Cash flow instruments | 3.2 | -3.2 | -3.2 | \u2014 | \u2014 | \u2014 |
Transaction instruments | 3.2 | -3.2 | -2.8 | -0.2 | -0.1 | \u2014 |
Total financial liabilities1) | 2\u00a0691.0 | -2\u00a0869.2 | -810.4 | -1\u00a0594.4 | -370.6 | -93.8 |
MATURITY PROFILE OF THE FINANCIAL LIABILITIES AND DERIVATIVES BASED ON CONTRACTUAL UNDISCOUNTED PAYMENTS, INCLUDING INTEREST: 2023 (EUR MILLION) | CARRYING AMOUNT | CONTRACTUAL CASH FLOWS | WITHIN 1 YEAR | 1 -2 YEARS | 2 - 5 YEARS | MORE THAN 5 YEARS |
Non-derivative financial liabilities | ||||||
Syndicated loan | 1\u00a0617.9 | -1\u00a0795.2 | -73.3 | -61.0 | -1\u00a0661.0 | \u2014 |
Unsecured schuldschein loan | 150.7 | -167.8 | -8.2 | -6.7 | -153.0 | \u2014 |
Unsecured green bond NO 0010874050 | 201.4 | -212.9 | -10.7 | -202.2 | \u2014 | \u2014 |
Arctic Fish syndicated loan | 127.5 | -148.7 | -8.3 | -7.3 | -133.1 | \u2014 |
Other debt | 0.9 | -0.9 | -0.2 | -0.2 | -0.1 | -0.4 |
Trade payables and other liabilities | 560.7 | -560.7 | -560.7 | \u2014 | \u2014 | \u2014 |
Derivative financial liabilities | ||||||
Cash flow instruments | 0.1 | -0.1 | -0.1 | \u2014 | \u2014 | \u2014 |
Transaction instruments | 5.2 | -5.2 | -4.9 | -0.2 | -0.1 | \u2014 |
Total financial liabilities1) | 2\u00a0664.5 | -2\u00a0891.5 | -666.4 | -277.6 | -1\u00a0947.3 | -0.4 |
SALARY AND PERSONNEL EXPENSES (EUR MILLION) | 2024 | 2023 |
Salaries | -459.9 | -426.8 |
Cash bonuses | -30.6 | -34.3 |
Social security taxes | -66.8 | -61.2 |
Pension expenses | -20.0 | -17.4 |
Share price based bonus | -6.0 | -4.8 |
Temporary labor | -84.3 | -71.0 |
Other benefits | -38.0 | -32.5 |
Total salary and personnel expenses | -705.5 | -647.9 |
Average number of FTEs | 13\u00a0806 | 13\u00a0639 |
REMUNERATION TO GROUP MANAGEMENT TEAM (EUR MILLION) | 2024 | 2023 |
Salaries and other short-term employee benefits | -3.7 | -3.5 |
Post-employment benefits | -0.1 | -0.1 |
Share-based payments | -0.1 | \u2014 |
Total remuneration to Group Management Team | -3.9 | -3.6 |
Pension plans
Pension plans in the Group are mainly defined contribution plans. There are a few defined benefits plans, which are considered to be immaterial for the Group's financial statements.
PENSION PLANS (EUR MILLION) | PENSION COST | PENSION NET LIABILITY (FUND) 31.12 |
Mowi Norway1) | -11.3 | 3.2 |
Mowi Scotland | -2.7 | -5.0 |
Mowi Canada | -1.2 | \u2014 |
Other entities | -4.7 | 2.5 |
Total 2024 | -20.0 | 0.8 |
Total 2023 | -17.4 | 1.0 |
1) The term Mowi Norway includes all Norwegian entities including corporate.
On 16 June 2023 the High Court, in the case \u201cVirgin Media v NTL Pension Trustees II Limited (and others)\u201d, concluded that an amendment to a scheme\u2019s rules was invalid in the absence of a confirmation from the Scheme Actuary under Section 37 of the Pension Schemes Act 1993. The subsequent appeal was rejected.
Share option scheme
Mowi Group has a share-price based payment scheme for senior executives, and management and key experts of Business Areas, subsidiaries and group functions:
OUTSTANDING OPTIONS PER ALLOTMENT | 2024-ALLOTMENT OF CALL OPTIONS | 2023-ALLOTMENT OF CALL OPTIONS | 2022-ALLOTMENT OF CALL OPTIONS | 2021-ALLOTMENT OF CALL OPTIONS |
Distributed options | 1\u00a0710\u00a0000 | 1\u00a0615\u00a0000 | 1\u00a0570\u00a0000 | 1\u00a0675\u00a0000 |
Forfeited options | \u2014 | -25\u00a0000 | -40\u00a0000 | -225\u00a0000 |
Dividend adjustment | 29\u00a0380 | 85\u00a0938 | 153\u00a0126 | 191\u00a0941 |
Total options outstanding at year end1) | 1\u00a0739\u00a0380 | 1\u00a0675\u00a0938 | 1\u00a0683\u00a0126 | 1\u00a0641\u00a0941 |
Strike price December 31, 2024 (NOK) | 198.21 | 195.50 | 229.08 | 218.25 |
Number of employees in the scheme at year end | 39 | 33 | 29 | 26 |
1) None of the options were exercisable at year-end 2024.
The Share-Price-Based Payment Scheme comprises annual allocations by the Board of Directors of a number of European call options with a strike price of 107.5% of the share price of Mowi\u2019s shares at the date of the annual general meeting authorising allocations under the scheme. The options have a term of four years but will become exercisable immediately if a mandatory bid is made for all of the shares in Mowi or if Mowi is the non-surviving entity in a merger with another company. If the holder of the options exercises the options, the company may settle its obligation through the issue of new shares or, alternatively, by selling treasury shares to the option holder. There will be no lock-up obligation on the shares the option holder receives through the exercise of the option. The exercise of the option is conditional upon the option holder being employed in a non-terminated position in the Group on the date of exercise.
The number of shares and the strike price will be adjusted for dividends and changes in equity capital during the term of the
option in accordance with Oslo Stock Exchange derivative rules (A.2.2.8(1)b). Total profit through the exercise of the option in a year is capped at two years\u2019 salary for the option holder for the 2021-allotment of options.
For the 2022, 2023 and 2024-allotment, the exercise of 50% of the options awarded to an option holder is conditional on achievement of performance criteria, measured in the development of the share price of the Company's shares compared with those of peers (\"Performance-based Options\"). The exercise of the remaining 50% of the options awarded to an option holder is not conditional on achievement of such performance criteria (\"Ordinary Options\"). Total profit through the exercise of Performance-based Options in a year is capped at one year's salary for the option holder, and total profit through the exercise of Ordinary Options in a year is capped at one year's salary for the option holder.
If the profit exceeds these limits, the number of shares to be issued will be reduced accordingly. Following the 2024 annual general meeting (the \"AGM\"), the Board of Directors allocated 1 710 000 options with a strike price corresponding to 107.5% of the volume-weighted average share price on the OSE on the day of the AGM (NOK 201.61) to a total of 39 individuals.
Eligibility to the senior executive share option scheme is limited to: Group CEO, other Senior Executives and management and key experts of Business Areas, subsidiaries and group functions, based on the following criteria:
\u2022the position and individual is important in realising the Mowi Group ambitions;
\u2022the individual is considered critical for the Business Unit(s);
\u2022the individual is expected to continue in a role covered by the scheme;
\u2022the individual will not retire during the first year of the scheme
Share purchase programme
In 2024 all permanent employees in Mowi ASA and its Norwegian subsidiaries, as well as permanent employees in Mowi Scotland and Mowi Canada, had the opportunity to acquire shares in the Company. For the year 2024 these provisions entitled this group of employees to receive a taxable benefit of NOK 6 000 in connection with their participation in such a scheme. All employees were offered funding of the purchase price through an interest-free advance on salary from Mowi.
No other loans or guaranties have been granted to key management personnel.
INCOME TAXES FOR THE YEAR IN THE STATEMENT OF COMPREHENSIVE INCOME (EUR MILLION) | 2024 | 2023 |
Norway - Ordinary corporate tax excluding resource rent tax | -112.4 | -114.7 |
Norway - Resource rent tax gross\u00a0 (including production fee)1) | -24.2 | -48.3 |
Norway - Reduction of payable resource rent tax with payable production fee | 24.2 | 19.2 |
Foreign units | -48.4 | -54.4 |
Tax on profits (current tax) | -160.8 | -198.2 |
Norway - Ordinary corporate tax excluding resource rent tax | -0.6 | -44.7 |
Norway - Resource rent tax1) | -12.3 | -229.9 |
Foreign units | 16.8 | 13.6 |
Change in deferred tax | 3.9 | -261.0 |
Total income taxes related to profit for the year in the statement of comprehensive income | -156.9 | -459.2 |
1) The Norwegian resource rent tax for salmon farming was implemented during 2023 with retrospective effect from 1 January 2023. The resource rent tax of 25% is applicable to the seawater phase of the value chain. Including ordinary corporate tax rate of 22% the total tax rate for the seawater phase in Norway will be 47%. Activities outside the seawater phase are not subject to the
resource rent tax. A one-off implementation effect on deferred tax on biomass was recognised in the statement of comprehensive income for 2023. The payable resource rent tax is reduced with payable production fee for the year. The production fee expense is included in \"License/production fees\" in the statement of comprehensive Income.
RECONCILIATION BETWEEN NOMINAL AND EFFECTIVE TAX RATES (EUR MILLION) | 2024 | 2023 |
Profit before tax | 631.7 | 898.7 |
Nominal tax rate | 22% | 22% |
Tax calculated with nominal tax rate | -139.0 | -197.7 |
Non-taxable income/loss from associated companies and joint ventures | 6.5 | 6.2 |
Effect of changed tax rate on deferred tax positions | \u2014 | -4.7 |
Effect of adjustment of income tax from previous years | -5.2 | 2.3 |
Effect of recognition of previously non-recognised tax assets | 1.4 | 2.1 |
Effect of non-recognition of losses and tax assets | -6.3 | -0.4 |
Resource rent tax Norway | -12.2 | -259.0 |
Other permanent differences | -8.0 | -13.5 |
Effect of different tax rates compared to nominal rate | 5.9 | 5.3 |
Total income taxes | -156.9 | -459.2 |
TAX PREPAID/RECEIVABLE IN THE STATEMENT OF FINANCIAL POSITION (EUR MILLION) | 2024 | 2023 |
Tax prepaid/receivable in Norway | 87.5 | 6.5 |
Tax prepaid/receivable in foreign units | 9.0 | 25.4 |
Total tax prepaid/receivable in the statement of financial position | 96.5 | 31.9 |
TAX PAYABLE IN THE STATEMENT OF FINANCIAL POSITION (EUR MILLION) | 2024 | 2023 |
Tax payable in Norway | 119.8 | 162.1 |
Tax payable in foreign units | 21.4 | 22.3 |
Total tax payable in the statement of financial position | 141.2 | 184.4 |
SPECIFICATION OF DEFERRED TAX AND BASIS FOR DEFERRED TAX/TAX ASSETS INCREASING/REDUCING TEMPORARY DIFFERENCES (EUR MILLION) | 2024 | 2023 |
Non-current assets | 1\u00a0214.0 | 1\u00a0266.2 |
Current assets | 1\u00a0323.0 | 1\u00a0251.3 |
Debt | -91.2 | -90.0 |
Pension obligation | -6.2 | -6.3 |
Tax losses carried forward | -233.5 | -161.0 |
Other differences | 55.9 | 25.6 |
Total temporary differences | 2\u00a0262.1 | 2\u00a0285.8 |
Tax losses carried forward in Norway | -2.5 | -7.9 |
Other temporary differences in Norway | 1\u00a0734.5 | 1\u00a0732.2 |
Tax losses carried forward abroad | -231.0 | -153.2 |
Other temporary differences abroad | 761.0 | 714.7 |
Total temporary differences | 2\u00a0262.1 | 2\u00a0285.8 |
TOTAL DEFERRED TAX ASSET/LIABILITIES IN THE STATEMENT OF FINANCIAL POSITION (EUR MILLION) | 2024 | 2023 |
Deferred tax assets | 87.6 | 76.0 |
Deferred tax liabilities | -834.4 | -820.4 |
Net deferred tax in the statement of financial position | -746.8 | -744.4 |
Mowi has recognised deferred tax assets related to tax losses carried forward. This is based on the expectation of probable sufficient earnings in the future. The expectations are based on current earnings and approved budgets. Deferred tax assets related to tax losses carried forward at a total of EUR 103.2 million have not been recognised due to uncertain utilisation.
Deferred tax assets linked to tax losses are offset against deferred tax liabilities in the tax jurisdictions, where acceptable.
MATURITY OF TAX LOSSES (EUR MILLION) | NORWAY | ABROAD | TOTAL |
2025 | \u2014 | 3.6 | 3.6 |
2026 | \u2014 | 3.7 | 3.7 |
2027 | \u2014 | 2.7 | 2.7 |
2028 | \u2014 | 1.9 | 1.9 |
2029 | \u2014 | 10.6 | 10.6 |
2030 | \u2014 | 4.9 | 4.9 |
2031 | \u2014 | \u2014 | \u2014 |
2032 | \u2014 | 0.5 | 0.5 |
2033 | \u2014 | 14.9 | 14.9 |
2034+ | \u2014 | 92.0 | 92.0 |
Unlimited | 2.5 | 96.1 | 98.7 |
Total 2024 | 2.5 | 231.0 | 233.5 |
Total 2023 | 7.9 | 153.2 | 161.0 |
MATURITY OF TAX LOSSES FOR WHICH NO DEFERRED TAX ASSET IS RECOGNISED (EUR MILLION) | NORWAY | ABROAD | TOTAL |
2025 | \u2014 | 0.8 | 0.8 |
2026 | \u2014 | \u2014 | \u2014 |
2027 | \u2014 | \u2014 | \u2014 |
2028 | \u2014 | \u2014 | \u2014 |
2029 | \u2014 | \u2014 | \u2014 |
2030 | \u2014 | \u2014 | \u2014 |
2031 | \u2014 | \u2014 | \u2014 |
2032 | \u2014 | \u2014 | \u2014 |
2033 | \u2014 | \u2014 | \u2014 |
2034+ | \u2014 | \u2014 | \u2014 |
Unlimited | \u2014 | 102.3 | 102.3 |
Total 2024 | \u2014 | 103.2 | 103.2 |
Total 2023 | \u2014 | 119.8 | 119.8 |
TAX RATES APPLIED (SELECTED COUNTRIES) | 2024 | 2023 |
Japan | 30.6% | 30.6% |
USA | 21.0% | 21.0% |
Belgium | 25.0% | 25.0% |
Iceland | 20.0% | 20.0% |
France | 25.0% | 25.0% |
Norway - seawater | 47.0% | 47.0% |
Norway - excluding seawater | 22.0% | 22.0% |
China | 25.0% | 25.0% |
Netherlands | 25.8% | 25.8% |
Scotland | 25.0% | 25.0% |
Canada West | 27.0% | 27.0% |
Canada East | 29.0% | 29.0% |
Faroe Islands | 18.0% | 18.0% |
Chile | 27.0% | 27.0% |
Poland | 19.0% | 19.0% |
Ireland | 12.5% | 12.5% |
Corporate taxes paid (EUR thousand) 2024 | Income taxes | Production/License tax | Total 2024 |
Norway | 219\u00a0991 | 23\u00a0677 | 243\u00a0668 |
Canada | -16\u00a0256 | 8\u00a0370 | -7\u00a0886 |
Scotland | 4\u00a0966 | 4\u00a0734 | 9\u00a0700 |
The Faroe Islands | 4\u00a0273 | \u2014 | 4\u00a0273 |
Japan | 2\u00a0850 | \u2014 | 2\u00a0850 |
Belgium | 1\u00a0699 | \u2014 | 1\u00a0699 |
Ireland | 1\u00a0146 | 187 | 1\u00a0333 |
Germany | 797 | \u2014 | 797 |
Czech | 1\u00a0201 | \u2014 | 1\u00a0201 |
Singapore | 1\u00a0655 | \u2014 | 1\u00a0655 |
France | 86 | \u2014 | 86 |
Spain | \u2014 | \u2014 | \u2014 |
Netherlands | 887 | \u2014 | 887 |
Italy | 851 | \u2014 | 851 |
South Korea | 303 | \u2014 | 303 |
USA | 8\u00a0072 | \u2014 | 8\u00a0072 |
Taiwan | 82 | \u2014 | 82 |
Vietnam | 308 | \u2014 | 308 |
Sweden | 99 | \u2014 | 99 |
Turkey | 365 | \u2014 | 365 |
Poland | 20\u00a0200 | \u2014 | 20\u00a0200 |
Chile | -501 | 2\u00a0291 | 1\u00a0790 |
Iceland | \u2014 | 2\u00a0704 | 2\u00a0704 |
Total corporate taxes paid | 253\u00a0074 | 41\u00a0963 | 295\u00a0037 |
Corporate taxes paid (EUR thousand) 2023 | Income taxes | Production/License tax | Total 2023 |
Norway | 98\u00a0614 | 15\u00a0782 | 114\u00a0396 |
Canada | 36\u00a0860 | 12\u00a0083 | 48\u00a0943 |
Scotland | 12\u00a0719 | 4\u00a0344 | 17\u00a0063 |
The Faroe Islands | 726 | \u2014 | 726 |
Japan | 2\u00a0421 | \u2014 | 2\u00a0421 |
Belgium | 1\u00a0884 | \u2014 | 1\u00a0884 |
Ireland | -342 | 199 | -143 |
Germany | 613 | \u2014 | 613 |
Czech | 320 | \u2014 | 320 |
Singapore | 1\u00a0427 | \u2014 | 1\u00a0427 |
France | 130 | \u2014 | 130 |
Spain | 264 | \u2014 | 264 |
Netherlands | 859 | \u2014 | 859 |
Italy | 115 | \u2014 | 115 |
South Korea | 356 | \u2014 | 356 |
USA | 8\u00a0387 | \u2014 | 8\u00a0387 |
Vietnam | 161 | \u2014 | 161 |
Sweden | 157 | \u2014 | 157 |
Poland | 17\u00a0512 | \u2014 | 17\u00a0512 |
Chile | -152 | 2\u00a0639 | 2\u00a0487 |
Iceland | \u2014 | 1\u00a0473 | 1\u00a0473 |
Total corporate taxes paid | 183\u00a0031 | 36\u00a0520 | 219\u00a0551 |
OECD Pillar Two model rules
Mowi is within the scope of the OECD Pillar Two model rules. From\u00a0 1 January 2024 the Pillar Two legislation became effective in Norway, the jurisdiction in which Mowi is incorporated.
Under the legislation, the group is liable to pay a top-up tax for the difference between its effective tax rate per jurisdiction and a 15% minimum rate (calculated according to Pillar Two model rules).
SPECIFICATION OF DEFERRED TAX AND BASIS FOR DEFERRED TAX/TAX ASSETS INCREASING/REDUCING TEMPORARY DIFFERENCES (EUR MILLION) | 2024 | 2023 |
Non-current assets | 1\u00a0214.0 | 1\u00a0266.2 |
Current assets | 1\u00a0323.0 | 1\u00a0251.3 |
Debt | -91.2 | -90.0 |
Pension obligation | -6.2 | -6.3 |
Tax losses carried forward | -233.5 | -161.0 |
Other differences | 55.9 | 25.6 |
Total temporary differences | 2\u00a0262.1 | 2\u00a0285.8 |
Tax losses carried forward in Norway | -2.5 | -7.9 |
Other temporary differences in Norway | 1\u00a0734.5 | 1\u00a0732.2 |
Tax losses carried forward abroad | -231.0 | -153.2 |
Other temporary differences abroad | 761.0 | 714.7 |
Total temporary differences | 2\u00a0262.1 | 2\u00a0285.8 |
TOTAL DEFERRED TAX ASSET/LIABILITIES IN THE STATEMENT OF FINANCIAL POSITION (EUR MILLION) | 2024 | 2023 |
Deferred tax assets | 87.6 | 76.0 |
Deferred tax liabilities | -834.4 | -820.4 |
Net deferred tax in the statement of financial position | -746.8 | -744.4 |
Mowi has recognised deferred tax assets related to tax losses carried forward. This is based on the expectation of probable sufficient earnings in the future. The expectations are based on current earnings and approved budgets. Deferred tax assets related to tax losses carried forward at a total of EUR 103.2 million have not been recognised due to uncertain utilisation.
Deferred tax assets linked to tax losses are offset against deferred tax liabilities in the tax jurisdictions, where acceptable.
MATURITY OF TAX LOSSES (EUR MILLION) | NORWAY | ABROAD | TOTAL |
2025 | \u2014 | 3.6 | 3.6 |
2026 | \u2014 | 3.7 | 3.7 |
2027 | \u2014 | 2.7 | 2.7 |
2028 | \u2014 | 1.9 | 1.9 |
2029 | \u2014 | 10.6 | 10.6 |
2030 | \u2014 | 4.9 | 4.9 |
2031 | \u2014 | \u2014 | \u2014 |
2032 | \u2014 | 0.5 | 0.5 |
2033 | \u2014 | 14.9 | 14.9 |
2034+ | \u2014 | 92.0 | 92.0 |
Unlimited | 2.5 | 96.1 | 98.7 |
Total 2024 | 2.5 | 231.0 | 233.5 |
Total 2023 | 7.9 | 153.2 | 161.0 |
MATURITY OF TAX LOSSES FOR WHICH NO DEFERRED TAX ASSET IS RECOGNISED (EUR MILLION) | NORWAY | ABROAD | TOTAL |
2025 | \u2014 | 0.8 | 0.8 |
2026 | \u2014 | \u2014 | \u2014 |
2027 | \u2014 | \u2014 | \u2014 |
2028 | \u2014 | \u2014 | \u2014 |
2029 | \u2014 | \u2014 | \u2014 |
2030 | \u2014 | \u2014 | \u2014 |
2031 | \u2014 | \u2014 | \u2014 |
2032 | \u2014 | \u2014 | \u2014 |
2033 | \u2014 | \u2014 | \u2014 |
2034+ | \u2014 | \u2014 | \u2014 |
Unlimited | \u2014 | 102.3 | 102.3 |
Total 2024 | \u2014 | 103.2 | 103.2 |
Total 2023 | \u2014 | 119.8 | 119.8 |
TAX PREPAID/RECEIVABLE IN THE STATEMENT OF FINANCIAL POSITION (EUR MILLION) | 2024 | 2023 |
Tax prepaid/receivable in Norway | 87.5 | 6.5 |
Tax prepaid/receivable in foreign units | 9.0 | 25.4 |
Total tax prepaid/receivable in the statement of financial position | 96.5 | 31.9 |
TAX PAYABLE IN THE STATEMENT OF FINANCIAL POSITION (EUR MILLION) | 2024 | 2023 |
Tax payable in Norway | 119.8 | 162.1 |
Tax payable in foreign units | 21.4 | 22.3 |
Total tax payable in the statement of financial position | 141.2 | 184.4 |
CASH (EUR MILLION) | 2024 | 2023 |
Cash in bank | 276.7 | 288.4 |
Employees' tax deduction | 10.5 | 8.0 |
Other restricted cash1) | 2.9 | 6.5 |
Total cash | 290.2 | 302.8 |
CASH (EUR MILLION) | 2024 | 2023 |
Cash in bank | 276.7 | 288.4 |
Employees' tax deduction | 10.5 | 8.0 |
Other restricted cash1) | 2.9 | 6.5 |
Total cash | 290.2 | 302.8 |
SPECIFICATION OF RECEIVABLES (EUR MILLION) | 2024 | 2023 |
Trade receivables | 664.3 | 657.5 |
Provisions for expected credit losses | -2.8 | -3.2 |
Net trade receivables | 661.5 | 654.3 |
Prepayments | 46.3 | 67.0 |
Pension fund | 5.3 | 5.3 |
Tax prepaid/receivable | 96.5 | 31.9 |
Other | 107.7 | 149.5 |
Other receivables and prepayments | 255.9 | 253.7 |
Total trade receivables, other receivables and prepayments | 917.4 | 908.0 |
Based on the nature of business, the Group does not have any material contract assets.
AGE DISTRIBUTION OF TRADE RECEIVABLES (EUR MILLION) | 2024 | 2023 |
Receivables not overdue | 584.4 | 577.1 |
Overdue 0-6 months | 74.1 | 75.3 |
Overdue more than 6 months | 5.9 | 5.2 |
Total trade receivables | 664.3 | 657.5 |
Movement in provisions for credit losses (trade receivables)
At the beginning of 2024, provisions for credit losses amounted to EUR 3.2 million. During 2024, EUR 1.1 million were considered lost. Adjusted for additional provisions for credit losses of EUR 0.7 million the provision at year-end amounted to EUR 2.8 million for 2024. See also Note 13.
Currency exposure to trade receivables
The Business Units generally complete their sales in the main trading currency in the country of destination. The carrying amount of trade receivables per currency is presented below.
CURRENCY SPLIT ACCOUNTS RECEIVABLES | 2024 | 2023 |
EUR | 55% | 52% |
USD | 17% | 16% |
GBP | 13% | 12% |
NOK | 5% | 9% |
PLN | 2% | 4% |
JPY | 4% | 3% |
CAD | 1% | 1% |
Other | 3% | 3% |
SPECIFICATION OF RECEIVABLES (EUR MILLION) | 2024 | 2023 |
Trade receivables | 664.3 | 657.5 |
Provisions for expected credit losses | -2.8 | -3.2 |
Net trade receivables | 661.5 | 654.3 |
Prepayments | 46.3 | 67.0 |
Pension fund | 5.3 | 5.3 |
Tax prepaid/receivable | 96.5 | 31.9 |
Other | 107.7 | 149.5 |
Other receivables and prepayments | 255.9 | 253.7 |
Total trade receivables, other receivables and prepayments | 917.4 | 908.0 |
Based on the nature of business, the Group does not have any material contract assets.
AGE DISTRIBUTION OF TRADE RECEIVABLES (EUR MILLION) | 2024 | 2023 |
Receivables not overdue | 584.4 | 577.1 |
Overdue 0-6 months | 74.1 | 75.3 |
Overdue more than 6 months | 5.9 | 5.2 |
Total trade receivables | 664.3 | 657.5 |
Movement in provisions for credit losses (trade receivables)
At the beginning of 2024, provisions for credit losses amounted to EUR 3.2 million. During 2024, EUR 1.1 million were considered lost. Adjusted for additional provisions for credit losses of EUR 0.7 million the provision at year-end amounted to EUR 2.8 million for 2024. See also Note 13.
CURRENT LIABILITIES (EUR MILLION) | 2024 | 2023 |
Trade payables | 517.9 | 560.7 |
Other current liabilities | ||
Salaries and vacation pay due | 74.0 | 74.8 |
Social security and other taxes | 80.5 | 33.3 |
Accrued expenses | 153.2 | 133.9 |
Other liabilities | 40.8 | 51.9 |
Total other current liabilities | 348.5 | 293.9 |
Based on the nature of business, the Group does not have any material contract liabilities.
As per year-end Mowi has a share of its trade payables with two finance institutions as the counterparty through applying Supply chain finance agreements. The range of payment conditions vary from from 90-120 days and are similar to comparable trade payables that are not part of the Supply chain finance agreements.
As of year-end 2024, carrying amount of trade payables that are part of Supply chain finance agreements was EUR 194.9 million (EUR 189.4 million), of which suppliers have received payment of EUR 192.3 million.
There were no significant non-cash changes in the carrying amount of the trade payables included in the Supply chain finance agreements.
CURRENT LEASING LIABILITIES (EUR MILLION) | 2024 | 2023 |
Current part (first year) leases | 179.4 | 174.5 |
Total current leasing liabilities | 179.4 | 174.5 |
UNUSED DRAWING RIGHTS (EUR MILLION) | 2024 | 2023 |
Unused part of bank overdraft facility (to be renewed within one year) | 39.5 | 7.0 |
Unused part of bank overdraft facility (to be renewed in more than one year) | 66.0 | 66.0 |
Unused part of other drawing rights (to be renewed in more than one year) | 578.3 | 341.2 |
Total unused drawing rights | 683.8 | 414.2 |
CURRENT LIABILITIES (EUR MILLION) | 2024 | 2023 |
Trade payables | 517.9 | 560.7 |
Other current liabilities | ||
Salaries and vacation pay due | 74.0 | 74.8 |
Social security and other taxes | 80.5 | 33.3 |
Accrued expenses | 153.2 | 133.9 |
Other liabilities | 40.8 | 51.9 |
Total other current liabilities | 348.5 | 293.9 |
Based on the nature of business, the Group does not have any material contract liabilities.
As per year-end Mowi has a share of its trade payables with two finance institutions as the counterparty through applying Supply chain finance agreements. The range of payment conditions vary from from 90-120 days and are similar to comparable trade payables that are not part of the Supply chain finance agreements.
As of year-end 2024, carrying amount of trade payables that are part of Supply chain finance agreements was EUR 194.9 million (EUR 189.4 million), of which suppliers have received payment of EUR 192.3 million.
There were no significant non-cash changes in the carrying amount of the trade payables included in the Supply chain finance agreements.
CURRENT LEASING LIABILITIES (EUR MILLION) | 2024 | 2023 |
Current part (first year) leases | 179.4 | 174.5 |
Total current leasing liabilities | 179.4 | 174.5 |
UNUSED DRAWING RIGHTS (EUR MILLION) | 2024 | 2023 |
Unused part of bank overdraft facility (to be renewed within one year) | 39.5 | 7.0 |
Unused part of bank overdraft facility (to be renewed in more than one year) | 66.0 | 66.0 |
Unused part of other drawing rights (to be renewed in more than one year) | 578.3 | 341.2 |
Total unused drawing rights | 683.8 | 414.2 |
CURRENT LIABILITIES (EUR MILLION) | 2024 | 2023 |
Trade payables | 517.9 | 560.7 |
Other current liabilities | ||
Salaries and vacation pay due | 74.0 | 74.8 |
Social security and other taxes | 80.5 | 33.3 |
Accrued expenses | 153.2 | 133.9 |
Other liabilities | 40.8 | 51.9 |
Total other current liabilities | 348.5 | 293.9 |
CURRENT LIABILITIES (EUR MILLION) | 2024 | 2023 |
Trade payables | 517.9 | 560.7 |
Other current liabilities | ||
Salaries and vacation pay due | 74.0 | 74.8 |
Social security and other taxes | 80.5 | 33.3 |
Accrued expenses | 153.2 | 133.9 |
Other liabilities | 40.8 | 51.9 |
Total other current liabilities | 348.5 | 293.9 |
OTHER NON-CURRENT LIABILITIES (EUR MILLION) | 2024 | 2023 |
Net pension obligations | 6.1 | 6.2 |
Other non-current liabilities | 1.1 | 0.4 |
Total other non-current liabilities | 7.1 | 6.6 |
DEBT SECURED BY MORTGAGES AND PLEDGES (EUR MILLION) | 2024 | 2023 |
Debt to financial institutions | 1\u00a0696.6 | 1\u00a0934.7 |
Leasing debt | 0.7 | 0.7 |
Total debt secured by mortgages and pledges | 1\u00a0697.3 | 1\u00a0935.4 |
Guarantee commitments | 14.5 | 12.9 |
The Mowi Group syndicated loan facility has been established with security in current assets, licenses (where applicable), fixed assets and guarantees from some of the entities in the Group. In addition the shares in larger subsidiaries have been pledged in favour of the bank syndicate.
ASSETS PLEDGED AS SECURITY FOR DEBT (EUR MILLION) | 2024 | 2023 |
Tangible non-current assets and licenses | 1\u00a0910.9 | 1\u00a0824.4 |
Inventory and biological assets | 2\u00a0529.6 | 2\u00a0381.7 |
Trade receivables | 385.7 | 381.5 |
Other assets | 184.9 | 231.7 |
Total assets pledged as security | 5\u00a0011.1 | 4\u00a0819.3 |
OTHER NON-CURRENT LIABILITIES (EUR MILLION) | 2024 | 2023 |
Net pension obligations | 6.1 | 6.2 |
Other non-current liabilities | 1.1 | 0.4 |
Total other non-current liabilities | 7.1 | 6.6 |
Associated companies are recorded in Mowi Group statements in accordance with the equity method. None of the associated companies are listed.
ASSOCIATED COMPANIES (EUR MILLION) | HEAD OFFICE | OWNER- SHIP | OWNED BY | AQUISITION COST | CARRYING AMOUNT 01.01.24 | SHARE OF PROFIT 2024 | DIVIDENDS RECEIVED 2024 | OTHER CHANGES | CARRYING AMOUNT 31.12.24 |
Nova Sea AS | Lovund | 49% | Mowi Holding AS | 29.5 | 210.8 | 29.5 | -22.4 | -7.8 | 210.2 |
Others | 0.3 | 0.9 | \u2014 | \u2014 | -0.5 | 0.4 | |||
Total | 29.9 | 211.7 | 29.5 | -22.4 | -8.2 | 210.6 |
1) Other changes mainly relates to foreign currency adjustments.
ASSOCIATED COMPANIES 100% BASIS (EUR MILLION) | DIVIDEND RECEIVED | FAIR VALUE ADJUSTMENT BIOMASS1) | TOTAL REVENUE | TOTAL PROFIT AND LOSS | TOTAL NON- CURRENT ASSETS | TOTAL BIOLOGICAL ASSETS2) | TOTAL OTHER CURRENT ASSETS | TOTAL NON- CURRENT LIABILITIES | TOTAL CURRENT LIABILITIES |
2024 | |||||||||
Nova Sea AS | 22.4 | 18.3 | 424.6 | 75.2 | 484.1 | 128.4 | 167.1 | 68.0 | 222.2 |
2023 | |||||||||
Nova Sea AS | 17.2 | 27.3 | 445.8 | 135.1 | 470.5 | 121.6 | 184.0 | 0.5 | 239.2 |
1) Effect of adjusting Mowi`s share of total biological assets as of December 31 presented above to fair value. The effect is shown after tax.
2) Figures from Nova Sea Havbruk AS.
Associated companies are recorded in Mowi Group statements in accordance with the equity method. None of the associated companies are listed.
ASSOCIATED COMPANIES (EUR MILLION) | HEAD OFFICE | OWNER- SHIP | OWNED BY | AQUISITION COST | CARRYING AMOUNT 01.01.24 | SHARE OF PROFIT 2024 | DIVIDENDS RECEIVED 2024 | OTHER CHANGES | CARRYING AMOUNT 31.12.24 |
Nova Sea AS | Lovund | 49% | Mowi Holding AS | 29.5 | 210.8 | 29.5 | -22.4 | -7.8 | 210.2 |
Others | 0.3 | 0.9 | \u2014 | \u2014 | -0.5 | 0.4 | |||
Total | 29.9 | 211.7 | 29.5 | -22.4 | -8.2 | 210.6 |
1) Other changes mainly relates to foreign currency adjustments.
ASSOCIATED COMPANIES 100% BASIS (EUR MILLION) | DIVIDEND RECEIVED | FAIR VALUE ADJUSTMENT BIOMASS1) | TOTAL REVENUE | TOTAL PROFIT AND LOSS | TOTAL NON- CURRENT ASSETS | TOTAL BIOLOGICAL ASSETS2) | TOTAL OTHER CURRENT ASSETS | TOTAL NON- CURRENT LIABILITIES | TOTAL CURRENT LIABILITIES |
2024 | |||||||||
Nova Sea AS | 22.4 | 18.3 | 424.6 | 75.2 | 484.1 | 128.4 | 167.1 | 68.0 | 222.2 |
2023 | |||||||||
Nova Sea AS | 17.2 | 27.3 | 445.8 | 135.1 | 470.5 | 121.6 | 184.0 | 0.5 | 239.2 |
1) Effect of adjusting Mowi`s share of total biological assets as of December 31 presented above to fair value. The effect is shown after tax.
2) Figures from Nova Sea Havbruk AS.
Associated companies are recorded in Mowi Group statements in accordance with the equity method. None of the associated companies are listed.
ASSOCIATED COMPANIES (EUR MILLION) | HEAD OFFICE | OWNER- SHIP | OWNED BY | AQUISITION COST | CARRYING AMOUNT 01.01.24 | SHARE OF PROFIT 2024 | DIVIDENDS RECEIVED 2024 | OTHER CHANGES | CARRYING AMOUNT 31.12.24 |
Nova Sea AS | Lovund | 49% | Mowi Holding AS | 29.5 | 210.8 | 29.5 | -22.4 | -7.8 | 210.2 |
Others | 0.3 | 0.9 | \u2014 | \u2014 | -0.5 | 0.4 | |||
Total | 29.9 | 211.7 | 29.5 | -22.4 | -8.2 | 210.6 |
1) Other changes mainly relates to foreign currency adjustments.
ASSOCIATED COMPANIES 100% BASIS (EUR MILLION) | DIVIDEND RECEIVED | FAIR VALUE ADJUSTMENT BIOMASS1) | TOTAL REVENUE | TOTAL PROFIT AND LOSS | TOTAL NON- CURRENT ASSETS | TOTAL BIOLOGICAL ASSETS2) | TOTAL OTHER CURRENT ASSETS | TOTAL NON- CURRENT LIABILITIES | TOTAL CURRENT LIABILITIES |
2024 | |||||||||
Nova Sea AS | 22.4 | 18.3 | 424.6 | 75.2 | 484.1 | 128.4 | 167.1 | 68.0 | 222.2 |
2023 | |||||||||
Nova Sea AS | 17.2 | 27.3 | 445.8 | 135.1 | 470.5 | 121.6 | 184.0 | 0.5 | 239.2 |
1) Effect of adjusting Mowi`s share of total biological assets as of December 31 presented above to fair value. The effect is shown after tax.
2) Figures from Nova Sea Havbruk AS.
The consolidated financial statements include the following companies:
PARENT COMPANY | COUNTRY | |
Mowi ASA | Norway | |
SUBSIDIARIES - NORWAY | COUNTRY | OWNERSHIP % |
Mowi Seawater Norway AS | Norway | 100.00% |
Mowi Feed AS | Norway | 100.00% |
Mowi Genetics AS | Norway | 100.00% |
Mowi Holding AS | Norway | 100.00% |
Mowi Minority Holding AS | Norway | 100.00% |
Mowi Markets Norway AS | Norway | 100.00% |
Mowi Norway FOU AS | Norway | 100.00% |
Waynor Trading AS | Norway | 100.00% |
Arctic Fish Holding AS | Norway | 51.28% |
Finn\u00f8y Fisk AS | Norway | 45.05% |
Centre for Aquaculture Competence AS | Norway | 33.33% |
Blue Revolution Centre AS | Norway | 33.33% |
SUBSIDIARIES - AMERICAS | COUNTRY | OWNERSHIP % |
Mowi North America Inc | Canada | 100.00% |
Mowi Canada West Inc | Canada | 100.00% |
Mowi Canada East Inc | Canada | 100.00% |
Englewood Packing Company Ltd | Canada | 100.00% |
Mowi Chile S.A | Chile | 100.00% |
Salmones Tecmar S.A | Chile | 100.00% |
Delifish Farming SPA | Chile | 100.00% |
Mowi Ducktrap LLC | USA | 100.00% |
Mowi USA Holding LLC | USA | 100.00% |
Mowi USA LLC | USA | 100.00% |
SUBSIDIARIES - ASIA | COUNTRY | OWNERSHIP % |
Mowi China Co. Ltd | China | 100.00% |
Mowi Japan Co. Ltd | Japan | 100.00% |
Mowi Korea Co. Ltd | South Korea | 100.00% |
Mowi Singapore Pte Ltd | Singapore | 100.00% |
Mowi Taiwan Co. Ltd | Taiwan | 100.00% |
Mowi Vietnam Company Ltd | Vietnam | 100.00% |
SUBSIDIARIES - EUROPE | COUNTRY | OWNERSHIP % |
Mowi Belgium NV | Belgium | 100.00% |
Mowi Czech s.r.o. | Czech Republic | 100.00% |
Mowi Faroe Islands P/F | Faroes | 100.00% |
Mowi France SAS | France | 100.00% |
Mowi Boulogne SAS | France | 100.00% |
Mowi Bretagne SAS | France | 100.00% |
SUBSIDIARIES - EUROPE | COUNTRY | OWNERSHIP % |
Mowi Rennes SAS | France | 100.00% |
Mowi Cuisery SAS | France | 100.00% |
Laschinger Seafood GmbH | Germany | 100.00% |
Mowi Harsum DACH GmbH | Germany | 100.00% |
Mowi Germany Verwaltungs GmbH | Germany | 100.00% |
Mowi Germany GmbH & Co. KG | Germany | 100.00% |
Belisco Ehf | Iceland | 100.00% |
Mowi Iceland Sales Ehf | Iceland | 100.00% |
Arctic Fish Ehf | Iceland | 51.28% |
Arctic Smolt Ehf | Iceland | 51.28% |
Arctic Sea Farm Ehf | Iceland | 51.28% |
Arctic Oddi Ehf | Iceland | 51.28% |
Comhlucht Iascaireachta Fanad Teoranta | Ireland | 100.00% |
Bradan (Maoil Rua) Teoranta | Ireland | 100.00% |
Bradan Fanad Teoranta | Ireland | 100.00% |
Fanad Pettigo Teoranta | Ireland | 100.00% |
Feirm Farraige Oilean Chliara Teoranta | Ireland | 92.03% |
Silverking Seafoods Ltd | Ireland | 100.00% |
Mowi Italia S.R.L. | Italy | 100.00% |
Mowi Netherlands BV | Netherlands | 100.00% |
Mowi Lemmer BV | Netherlands | 100.00% |
Mowi Poland SA | Poland | 100.00% |
Mowi Lebork Sp. z.o.o. | Poland | 100.00% |
Mowi Technology Sp.z.o.o. | Poland | 100.00% |
Mowi Poland Sales SA | Poland | 100.00% |
Mowi Nutrition Goleni\u00f3w Sp. z.o.o | Poland | 100.00% |
Mowi Iberia SLU | Spain | 100.00% |
Mowi Sweden AB | Sweden | 100.00% |
Mowi Turkiye Su \u00dcrunleri Ticaret A.\u015e. | Turkey | 100.00% |
Mowi Scotland Ltd | UK | 100.00% |
Meridian Salmon Group Ltd | UK | 100.00% |
Meridian Salmon Processing Ltd | UK | 100.00% |
Mowi Consumer Products UK Ltd | UK | 100.00% |
Dorset Cleanerfish Ltd | UK | 100.00% |
Anglesey Aquaculture Ltd | UK | 100.00% |
Ocean Matters Ltd | UK | 100.00% |
OM Penmon Ltd | UK | 100.00% |
Ferguson Salmon Ltd | UK | 100.00% |
Finfish Limited | UK | 100.00% |
Scalpay Multi-Trohpic Aquaculture Ltd | UK | 100.00% |
Wester Ross Fisheries Ltd | UK | 100.00% |
Ardessie Salmon Ltd | UK | 100.00% |
Wester Ross Property Investment Ltd | UK | 100.00% |
Dawnfresh Farming Ltd | UK | 100.00% |
Sanda Island Ltd | UK | 100.00% |
Business combinations
Mowi had no material business combinations in 2024.
Assets held for sale
Mowi had no material assets held for sale at year end 2024.
Discontinued operations
Discontinued operations
Assets held for sale
Mowi had no material assets held for sale at year end 2024.
The consolidated financial statements include the following companies:
PARENT COMPANY | COUNTRY | |
Mowi ASA | Norway | |
SUBSIDIARIES - NORWAY | COUNTRY | OWNERSHIP % |
Mowi Seawater Norway AS | Norway | 100.00% |
Mowi Feed AS | Norway | 100.00% |
Mowi Genetics AS | Norway | 100.00% |
Mowi Holding AS | Norway | 100.00% |
Mowi Minority Holding AS | Norway | 100.00% |
Mowi Markets Norway AS | Norway | 100.00% |
Mowi Norway FOU AS | Norway | 100.00% |
Waynor Trading AS | Norway | 100.00% |
Arctic Fish Holding AS | Norway | 51.28% |
Finn\u00f8y Fisk AS | Norway | 45.05% |
Centre for Aquaculture Competence AS | Norway | 33.33% |
Blue Revolution Centre AS | Norway | 33.33% |
SUBSIDIARIES - AMERICAS | COUNTRY | OWNERSHIP % |
Mowi North America Inc | Canada | 100.00% |
Mowi Canada West Inc | Canada | 100.00% |
Mowi Canada East Inc | Canada | 100.00% |
Englewood Packing Company Ltd | Canada | 100.00% |
Mowi Chile S.A | Chile | 100.00% |
Salmones Tecmar S.A | Chile | 100.00% |
Delifish Farming SPA | Chile | 100.00% |
Mowi Ducktrap LLC | USA | 100.00% |
Mowi USA Holding LLC | USA | 100.00% |
Mowi USA LLC | USA | 100.00% |
SUBSIDIARIES - ASIA | COUNTRY | OWNERSHIP % |
Mowi China Co. Ltd | China | 100.00% |
Mowi Japan Co. Ltd | Japan | 100.00% |
Mowi Korea Co. Ltd | South Korea | 100.00% |
Mowi Singapore Pte Ltd | Singapore | 100.00% |
Mowi Taiwan Co. Ltd | Taiwan | 100.00% |
Mowi Vietnam Company Ltd | Vietnam | 100.00% |
SUBSIDIARIES - EUROPE | COUNTRY | OWNERSHIP % |
Mowi Belgium NV | Belgium | 100.00% |
Mowi Czech s.r.o. | Czech Republic | 100.00% |
Mowi Faroe Islands P/F | Faroes | 100.00% |
Mowi France SAS | France | 100.00% |
Mowi Boulogne SAS | France | 100.00% |
Mowi Bretagne SAS | France | 100.00% |
SUBSIDIARIES - EUROPE | COUNTRY | OWNERSHIP % |
Mowi Rennes SAS | France | 100.00% |
Mowi Cuisery SAS | France | 100.00% |
Laschinger Seafood GmbH | Germany | 100.00% |
Mowi Harsum DACH GmbH | Germany | 100.00% |
Mowi Germany Verwaltungs GmbH | Germany | 100.00% |
Mowi Germany GmbH & Co. KG | Germany | 100.00% |
Belisco Ehf | Iceland | 100.00% |
Mowi Iceland Sales Ehf | Iceland | 100.00% |
Arctic Fish Ehf | Iceland | 51.28% |
Arctic Smolt Ehf | Iceland | 51.28% |
Arctic Sea Farm Ehf | Iceland | 51.28% |
Arctic Oddi Ehf | Iceland | 51.28% |
Comhlucht Iascaireachta Fanad Teoranta | Ireland | 100.00% |
Bradan (Maoil Rua) Teoranta | Ireland | 100.00% |
Bradan Fanad Teoranta | Ireland | 100.00% |
Fanad Pettigo Teoranta | Ireland | 100.00% |
Feirm Farraige Oilean Chliara Teoranta | Ireland | 92.03% |
Silverking Seafoods Ltd | Ireland | 100.00% |
Mowi Italia S.R.L. | Italy | 100.00% |
Mowi Netherlands BV | Netherlands | 100.00% |
Mowi Lemmer BV | Netherlands | 100.00% |
Mowi Poland SA | Poland | 100.00% |
Mowi Lebork Sp. z.o.o. | Poland | 100.00% |
Mowi Technology Sp.z.o.o. | Poland | 100.00% |
Mowi Poland Sales SA | Poland | 100.00% |
Mowi Nutrition Goleni\u00f3w Sp. z.o.o | Poland | 100.00% |
Mowi Iberia SLU | Spain | 100.00% |
Mowi Sweden AB | Sweden | 100.00% |
Mowi Turkiye Su \u00dcrunleri Ticaret A.\u015e. | Turkey | 100.00% |
Mowi Scotland Ltd | UK | 100.00% |
Meridian Salmon Group Ltd | UK | 100.00% |
Meridian Salmon Processing Ltd | UK | 100.00% |
Mowi Consumer Products UK Ltd | UK | 100.00% |
Dorset Cleanerfish Ltd | UK | 100.00% |
Anglesey Aquaculture Ltd | UK | 100.00% |
Ocean Matters Ltd | UK | 100.00% |
OM Penmon Ltd | UK | 100.00% |
Ferguson Salmon Ltd | UK | 100.00% |
Finfish Limited | UK | 100.00% |
Scalpay Multi-Trohpic Aquaculture Ltd | UK | 100.00% |
Wester Ross Fisheries Ltd | UK | 100.00% |
Ardessie Salmon Ltd | UK | 100.00% |
Wester Ross Property Investment Ltd | UK | 100.00% |
Dawnfresh Farming Ltd | UK | 100.00% |
Sanda Island Ltd | UK | 100.00% |
SHARE CAPITAL | 2024 | 2023 |
Total number of shares as of 01.01 | 517\u00a0111\u00a0091 | 517\u00a0111\u00a0091 |
Shares issued during the year | \u2014 | \u2014 |
Total number of shares as of 31.12 | 517\u00a0111\u00a0091 | 517\u00a0111\u00a0091 |
Treasury shares as of 01.01 | \u2014 | \u2014 |
Treasury shares purchased during the year | 1\u00a0182\u00a0069 | 147\u00a0297 |
Treasury shares sold during the year | -1\u00a0182\u00a0069 | -147\u00a0297 |
Treasury shares as of 31.12 | \u2014 | \u2014 |
Nominal value as of 31.12 (NOK) | 7.50 | 7.50 |
Share capital (total number of shares at nominal value) (EUR million) | 404.8 | 404.8 |
Other paid-in capital (EUR million) | 1\u00a0274.7 | 1\u00a0274.7 |
OVERVIEW OF THE LARGEST SHAREHOLDERS 31.12.24 | NUMBER OF SHARES | SHAREHOLDING % |
Geveran Trading Co Ltd1) | 74\u00a0289\u00a0287 | 14.37% |
Folketrygdfondet | 51\u00a0355\u00a0234 | 9.93% |
BlackRock, Inc. | 28\u00a0196\u00a0750 | 5.45% |
DnB ASA | 21\u00a0680\u00a0425 | 4.19% |
Vanguard Group Holdings | 17\u00a0866\u00a0142 | 3.45% |
Storebrand Kapitalforvaltning | 15\u00a0815\u00a0756 | 3.06% |
Deutsche Bank AG Group | 13\u00a0054\u00a0216 | 2.52% |
Alfred Berg Kapitalforvaltning | 11\u00a0934\u00a0237 | 2.31% |
Kommunal Landspensjonskasse | 11\u00a0927\u00a0061 | 2.31% |
Nordea AB | 10\u00a0869\u00a0728 | 2.10% |
Amundi Asset Management | 9\u00a0769\u00a0309 | 1.89% |
Svenska Handelsbanken AB | 9\u00a0662\u00a0522 | 1.87% |
Northern Trust Corporation | 8\u00a0475\u00a0507 | 1.64% |
CPP Investment Board | 7\u00a0294\u00a0692 | 1.41% |
UBS Group AG | 6\u00a0788\u00a0433 | 1.31% |
Sparebank 1 Gruppen AS | 6\u00a0623\u00a0367 | 1.28% |
Legal & General Group Plc | 5\u00a0327\u00a0135 | 1.03% |
DekaBank Deutsche Girozentrale | 4\u00a0749\u00a0885 | 0.92% |
Danske Bank Group | 4\u00a0748\u00a0141 | 0.92% |
Schroders PLC | 4\u00a0715\u00a0762 | 0.91% |
Total 20 largest shareholders | 325\u00a0143\u00a0589 | 62.88% |
Total other shareholders | 191\u00a0967\u00a0502 | 37.12% |
Total number of shares 31.12.24 | 517\u00a0111\u00a0091 | 100.00% |
1) In addition to the shares included above, Geveran Trading Co Ltd had per 31 December 2024 entered into a Total Return Swap (\"TRS\") agreement with underlying exposure to 4 000 000 shares in Mowi. Expiry date for the TRS agreement was 6 March 2025 and the TRS price was NOK 206.36 per share.
SHAREHOLDERS PER COUNTRY | NUMBER OF SHARES | SHARE % |
Norway | 180\u00a0473\u00a0514 | 34.90% |
USA | 79\u00a0113\u00a0081 | 15.30% |
Cyprus | 74\u00a0795\u00a0574 | 14.46% |
Great Britain | 45\u00a0666\u00a0345 | 8.83% |
Germany | 36\u00a0013\u00a0270 | 6.96% |
Other countries | 101\u00a0049\u00a0307 | 19.54% |
Total number of shares 31.12.24 | 517\u00a0111\u00a0091 | 100.00% |
SHARES OWNED BY BOARD MEMBERS, GROUP MANAGEMENT AND THEIR RELATED PARTIES AS OF 31.12.24 | NUMBER OF SHARES |
Board of Directors | |
\u00d8rjan Svanevik (Chair) | 4\u00a0200 |
Kristian Melhuus | 2\u00a0168 |
Lisbet K. N\u00e6r\u00f8 | 2\u00a0380 |
Kathrine Fredriksen1) | 1\u00a0413 |
Leif Teksum | 5\u00a0612 |
Peder Strand | 936 |
Kjersti Hob\u00f8l | 1\u00a0059 |
Marit \u00d8verg\u00e5rd Utnes | 1\u00a0241 |
Eivind Kallbekken | 700 |
John Olav Johansen | 768 |
Total number of shares held by Board members | 20\u00a0477 |
Group Management | |
Ivan Vindheim, CEO | 13\u00a0471 |
Kristian Ellingsen, CFO | 1\u00a0389 |
Catarina Martins, Chief Technology Officer and Chief Sustainability Officer | 2\u00a0834 |
\u00d8yvind Oaland, COO Farming Norway and Iceland | 5\u00a0777 |
Ben Hadfield, COO Farming Scotland, Ireland, Faroes and Canada East | 8\u00a0259 |
Fernando Villarroel, COO Farming Chile and Canada West | 5\u00a0801 |
Ola Brattvoll, COO Sales and Marketing | 10\u00a0620 |
Atle Kvist, COO Feed | 932 |
Kjersti Eikeseth, Chief HR Officer | 266 |
Total number of shares held by Group management | 49\u00a0349 |
Total number of shares held by Board members and Group management | 69\u00a0826 |
Total number of shares held by Board members and Group management in % of total outstanding shares | 0.01% |
1) Kathrine Fredriksen is a member of the class of Beneficiaries of the Trusts which indirectly control Geveran Trading Co Limited.
Shareholder's rights
There are no current limitations on voting rights or trade limitations related to the Mowi share.
The Board of Directors has been granted the following authorisations which may impact the share capital:
1.To acquire shares in the company (\"own shares\") on behalf of the company with a total nominal value of up to NOK 387 833 318. The authorisation is valid until the ordinary general meeting in 2025, however no longer than 30 June 2025.\"
2.To increase the company's share capital by up to NOK 387 833 318 provided that the combined number of shares that are
1.issued pursuant to this authorisation and the authorisation 3) below shall not in aggregate exceed 10% of the Company's current share capital. The authorisation is valid until the ordinary general meeting in 2025, however no longer than 30 June 2025.\"
SHARE CAPITAL | 2024 | 2023 |
Total number of shares as of 01.01 | 517\u00a0111\u00a0091 | 517\u00a0111\u00a0091 |
Shares issued during the year | \u2014 | \u2014 |
Total number of shares as of 31.12 | 517\u00a0111\u00a0091 | 517\u00a0111\u00a0091 |
Treasury shares as of 01.01 | \u2014 | \u2014 |
Treasury shares purchased during the year | 1\u00a0182\u00a0069 | 147\u00a0297 |
Treasury shares sold during the year | -1\u00a0182\u00a0069 | -147\u00a0297 |
Treasury shares as of 31.12 | \u2014 | \u2014 |
Nominal value as of 31.12 (NOK) | 7.50 | 7.50 |
Share capital (total number of shares at nominal value) (EUR million) | 404.8 | 404.8 |
Other paid-in capital (EUR million) | 1\u00a0274.7 | 1\u00a0274.7 |
SHARES OWNED BY BOARD MEMBERS, GROUP MANAGEMENT AND THEIR RELATED PARTIES AS OF 31.12.24 | NUMBER OF SHARES |
Board of Directors | |
\u00d8rjan Svanevik (Chair) | 4\u00a0200 |
Kristian Melhuus | 2\u00a0168 |
Lisbet K. N\u00e6r\u00f8 | 2\u00a0380 |
Kathrine Fredriksen1) | 1\u00a0413 |
Leif Teksum | 5\u00a0612 |
Peder Strand | 936 |
Kjersti Hob\u00f8l | 1\u00a0059 |
Marit \u00d8verg\u00e5rd Utnes | 1\u00a0241 |
Eivind Kallbekken | 700 |
John Olav Johansen | 768 |
Total number of shares held by Board members | 20\u00a0477 |
Group Management | |
Ivan Vindheim, CEO | 13\u00a0471 |
Kristian Ellingsen, CFO | 1\u00a0389 |
Catarina Martins, Chief Technology Officer and Chief Sustainability Officer | 2\u00a0834 |
\u00d8yvind Oaland, COO Farming Norway and Iceland | 5\u00a0777 |
Ben Hadfield, COO Farming Scotland, Ireland, Faroes and Canada East | 8\u00a0259 |
Fernando Villarroel, COO Farming Chile and Canada West | 5\u00a0801 |
Ola Brattvoll, COO Sales and Marketing | 10\u00a0620 |
Atle Kvist, COO Feed | 932 |
Kjersti Eikeseth, Chief HR Officer | 266 |
Total number of shares held by Group management | 49\u00a0349 |
Total number of shares held by Board members and Group management | 69\u00a0826 |
Total number of shares held by Board members and Group management in % of total outstanding shares | 0.01% |
1) Kathrine Fredriksen is a member of the class of Beneficiaries of the Trusts which indirectly control Geveran Trading Co Limited.
BASIC AND DILUTED EARNINGS PER SHARE | 2024 | 2023 |
Profit for the year attributable to owners of Mowi ASA (EUR million) | 468.5 | 444.4 |
Time-weighted average of shares issued and outstanding incl. diluted shares (million) | 517.1 | 517.1 |
Basic earnings per share from continuing operations (EUR) | 0.91 | 0.86 |
Diluted earnings per share from continuing operations (EUR) | 0.91 | 0.86 |
Transactions with associated companies
The figures presented below are with associated companies, mainly Nova Sea AS.
RELATED PARTY TRANSACTIONS (EUR MILLION) | 2024 | 2023 |
Revenue | 0.3 | 0.4 |
Purchase | -24.8 | -7.5 |
Trade receivables | \u2014 | 0.4 |
Trade payables | -1.8 | -1.7 |
All significant transactions are mainly related to the sale or purchase of fish or smolt and related services.
Shareholders
In 2024 and 2023 Mowi Group had no material transactions with any of its shareholders.
Update on the allegations of price collusion
On 25 January 2024, Mowi received a Statement of Objections from the European Commission as a result of the Commission's inspections in February 2019 of several Norwegian producers of farmed Atlantic salmon, including Mowi. The Statement of Objections is not a final decision, but rather the Commission's preliminary view that the companies under investigation may have breached the EU competition rules.
Mowi contests the Commission's preliminary view and the characteristics of the alleged behaviour in the market for farmed Norwegian Atlantic salmon, and strongly believes there has been no infringement of the competition rules. Issuing a Statement of Objections and opening a formal procedure does not in any way prejudge the outcome. The Commission will first after the parties
have exercised their rights of defence conclude on whether the alleged behaviour amounts to a violation of the EU competition rules.
A hearing in the matter was held in September 2024. The commission is now going through the information and documentation received and is expected to request more information from Mowi if found necessary. The commission will work forward until they have a final conclusion/adopt a decision. A conclusion is expected in 2025.
Furthermore, Mowi has been named a defendant in civil law proceedings by a group of claimants in the UK, including Scotland. Mowi disputes the allegations, which suggest a breach of applicable competition law on Mowi's part. The civil law claims clearly lack merit and are entirely unsubstantiated.
Decommissioning cost
Mowi has Farming operations in 7 countries. In all countries the useful life of our licences is considered indefinite (ref. note 2). Mowi has an obligation to decommission and remove all equipment when the use of a site/license comes to an end. In accordance with IAS 37.14 a provision shall be recognised when an entity has a present obligation as a result of a past event, such as setting up a site. However, due to the nature of our business and the assessed useful life of our licenses, such an obligation does not exist in the foreseeable future. In order to calculate a present value of decommissioning costs, a life span of at least 50 years should be applied in the calculation (although licenses have indefinite useful life) due to our plan of continued operations on the sites. Mowi considers a present value of such a cost of 50 years and beyond cannot be reliably measured. This is because the settlement dates are indeterminate; and other estimates, such as very long-term discount rates for which there is no observable measure, cannot be reliably determined. Consequently, the decommissioning obligation that exists cannot be reliably quantified and is disclosed as a contingent liability. There remains a high degree of uncertainty concerning such obligations. If and when there is a known change in our planned operations an updated assessment of any provision
will be made for the related sites and decommissioning cost. Even though the licenses are indefinite there will be the need to change the equipment on our locations from time to time. The expected life span on our equipment is long (app. 20 years) with appropriate maintenance performed. The cost related to changing equipment is limited. All costs related to running maintenance is expensed and investment in any new equipment including removal/moving to site is accounted as addition to PPE.
Based on the above, no provisions related to decommissioning or rehabilitation cost is recognised in the financial statement.
Other cases
We are routinely involved in various legal matters arising from the course of our business.
While the outcome of these proceedings cannot be predicted with certainty, we believe that, when resolved, they will not have any material adverse effect on our results, financial position or liquidity.
SPECIFICATION OF PROVISIONS 2024 (EUR MILLION) | RESTRUCTURING AND OTHER PROVISIONS | ONEROUS CONTRACTS | OTHER | TOTAL PROVISIONS |
Provisions as of 01.01 | 4.8 | 29.6 | 10.4 | 44.8 |
New provisions in the year | 14.1 | \u2014 | 0.4 | 14.5 |
Utilised provisions | -14.0 | \u2014 | -1.6 | -15.6 |
Non cash utilisation | \u2014 | -27.6 | \u2014 | -27.6 |
Currency adjustment | \u2014 | 0.2 | 0.3 | 0.5 |
Provisions as of 31.12 | 4.9 | 2.2 | 9.5 | 16.6 |
SPECIFICATION OF PROVISIONS 2023 (EUR MILLION) | RESTRUCTURING AND OTHER PROVISIONS | ONEROUS CONTRACTS | OTHER | TOTAL PROVISIONS |
Provisions as of 01.01 | 12.4 | 11.2 | 10.1 | 33.7 |
New provisions in the year | 3.7 | \u2014 | 1.5 | 5.2 |
Utilised provisions | -10.8 | \u2014 | -1.1 | -11.8 |
Non cash utilisation | \u2014 | 18.4 | -0.1 | 18.4 |
Currency adjustment | -0.6 | -0.1 | \u2014 | -0.7 |
Provisions as of 31.12 | 4.8 | 29.6 | 10.4 | 44.8 |
Update on the allegations of price collusion
On 25 January 2024, Mowi received a Statement of Objections from the European Commission as a result of the Commission's inspections in February 2019 of several Norwegian producers of farmed Atlantic salmon, including Mowi. The Statement of Objections is not a final decision, but rather the Commission's preliminary view that the companies under investigation may have breached the EU competition rules.
Mowi contests the Commission's preliminary view and the characteristics of the alleged behaviour in the market for farmed Norwegian Atlantic salmon, and strongly believes there has been no infringement of the competition rules. Issuing a Statement of Objections and opening a formal procedure does not in any way prejudge the outcome. The Commission will first after the parties
have exercised their rights of defence conclude on whether the alleged behaviour amounts to a violation of the EU competition rules.
A hearing in the matter was held in September 2024. The commission is now going through the information and documentation received and is expected to request more information from Mowi if found necessary. The commission will work forward until they have a final conclusion/adopt a decision. A conclusion is expected in 2025.
Furthermore, Mowi has been named a defendant in civil law proceedings by a group of claimants in the UK, including Scotland. Mowi disputes the allegations, which suggest a breach of applicable competition law on Mowi's part. The civil law claims clearly lack merit and are entirely unsubstantiated.
Decommissioning cost
Mowi has Farming operations in 7 countries. In all countries the useful life of our licences is considered indefinite (ref. note 2). Mowi has an obligation to decommission and remove all equipment when the use of a site/license comes to an end. In accordance with IAS 37.14 a provision shall be recognised when an entity has a present obligation as a result of a past event, such as setting up a site. However, due to the nature of our business and the assessed useful life of our licenses, such an obligation does not exist in the foreseeable future. In order to calculate a present value of decommissioning costs, a life span of at least 50 years should be applied in the calculation (although licenses have indefinite useful life) due to our plan of continued operations on the sites. Mowi considers a present value of such a cost of 50 years and beyond cannot be reliably measured. This is because the settlement dates are indeterminate; and other estimates, such as very long-term discount rates for which there is no observable measure, cannot be reliably determined. Consequently, the decommissioning obligation that exists cannot be reliably quantified and is disclosed as a contingent liability. There remains a high degree of uncertainty concerning such obligations. If and when there is a known change in our planned operations an updated assessment of any provision
will be made for the related sites and decommissioning cost. Even though the licenses are indefinite there will be the need to change the equipment on our locations from time to time. The expected life span on our equipment is long (app. 20 years) with appropriate maintenance performed. The cost related to changing equipment is limited. All costs related to running maintenance is expensed and investment in any new equipment including removal/moving to site is accounted as addition to PPE.
Based on the above, no provisions related to decommissioning or rehabilitation cost is recognised in the financial statement.
Other cases
We are routinely involved in various legal matters arising from the course of our business.
While the outcome of these proceedings cannot be predicted with certainty, we believe that, when resolved, they will not have any material adverse effect on our results, financial position or liquidity.
SPECIFICATION OF PROVISIONS 2024 (EUR MILLION) | RESTRUCTURING AND OTHER PROVISIONS | ONEROUS CONTRACTS | OTHER | TOTAL PROVISIONS |
Provisions as of 01.01 | 4.8 | 29.6 | 10.4 | 44.8 |
New provisions in the year | 14.1 | \u2014 | 0.4 | 14.5 |
Utilised provisions | -14.0 | \u2014 | -1.6 | -15.6 |
Non cash utilisation | \u2014 | -27.6 | \u2014 | -27.6 |
Currency adjustment | \u2014 | 0.2 | 0.3 | 0.5 |
Provisions as of 31.12 | 4.9 | 2.2 | 9.5 | 16.6 |
SPECIFICATION OF PROVISIONS 2023 (EUR MILLION) | RESTRUCTURING AND OTHER PROVISIONS | ONEROUS CONTRACTS | OTHER | TOTAL PROVISIONS |
Provisions as of 01.01 | 12.4 | 11.2 | 10.1 | 33.7 |
New provisions in the year | 3.7 | \u2014 | 1.5 | 5.2 |
Utilised provisions | -10.8 | \u2014 | -1.1 | -11.8 |
Non cash utilisation | \u2014 | 18.4 | -0.1 | 18.4 |
Currency adjustment | -0.6 | -0.1 | \u2014 | -0.7 |
Provisions as of 31.12 | 4.8 | 29.6 | 10.4 | 44.8 |
Update on the allegations of price collusion
On 25 January 2024, Mowi received a Statement of Objections from the European Commission as a result of the Commission's inspections in February 2019 of several Norwegian producers of farmed Atlantic salmon, including Mowi. The Statement of Objections is not a final decision, but rather the Commission's preliminary view that the companies under investigation may have breached the EU competition rules.
Mowi contests the Commission's preliminary view and the characteristics of the alleged behaviour in the market for farmed Norwegian Atlantic salmon, and strongly believes there has been no infringement of the competition rules. Issuing a Statement of Objections and opening a formal procedure does not in any way prejudge the outcome. The Commission will first after the parties
have exercised their rights of defence conclude on whether the alleged behaviour amounts to a violation of the EU competition rules.
A hearing in the matter was held in September 2024. The commission is now going through the information and documentation received and is expected to request more information from Mowi if found necessary. The commission will work forward until they have a final conclusion/adopt a decision. A conclusion is expected in 2025.
Furthermore, Mowi has been named a defendant in civil law proceedings by a group of claimants in the UK, including Scotland. Mowi disputes the allegations, which suggest a breach of applicable competition law on Mowi's part. The civil law claims clearly lack merit and are entirely unsubstantiated.
Decommissioning cost
Mowi has Farming operations in 7 countries. In all countries the useful life of our licences is considered indefinite (ref. note 2). Mowi has an obligation to decommission and remove all equipment when the use of a site/license comes to an end. In accordance with IAS 37.14 a provision shall be recognised when an entity has a present obligation as a result of a past event, such as setting up a site. However, due to the nature of our business and the assessed useful life of our licenses, such an obligation does not exist in the foreseeable future. In order to calculate a present value of decommissioning costs, a life span of at least 50 years should be applied in the calculation (although licenses have indefinite useful life) due to our plan of continued operations on the sites. Mowi considers a present value of such a cost of 50 years and beyond cannot be reliably measured. This is because the settlement dates are indeterminate; and other estimates, such as very long-term discount rates for which there is no observable measure, cannot be reliably determined. Consequently, the decommissioning obligation that exists cannot be reliably quantified and is disclosed as a contingent liability. There remains a high degree of uncertainty concerning such obligations. If and when there is a known change in our planned operations an updated assessment of any provision
will be made for the related sites and decommissioning cost. Even though the licenses are indefinite there will be the need to change the equipment on our locations from time to time. The expected life span on our equipment is long (app. 20 years) with appropriate maintenance performed. The cost related to changing equipment is limited. All costs related to running maintenance is expensed and investment in any new equipment including removal/moving to site is accounted as addition to PPE.
Based on the above, no provisions related to decommissioning or rehabilitation cost is recognised in the financial statement.
Other cases
We are routinely involved in various legal matters arising from the course of our business.
While the outcome of these proceedings cannot be predicted with certainty, we believe that, when resolved, they will not have any material adverse effect on our results, financial position or liquidity.
SPECIFICATION OF OTHER OPERATING EXPENSES (EUR MILLION) | 2024 | 2023 |
Maintenance | -252.2 | -221.2 |
Electricity and fuel | -147.2 | -155.6 |
Rent, leases and third-party services | -119.1 | -57.2 |
Insurance | -51.9 | -48.0 |
Consultancy and audit fees | -48.0 | -46.2 |
IT costs | -31.1 | -26.2 |
Travel cost | -10.2 | -11.1 |
Sales and marketing costs | -23.2 | -24.5 |
Other operating costs | -162.6 | -106.6 |
Total other operating expenses | -845.5 | -696.5 |
SPECIFICATION OF OTHER OPERATING EXPENSES (EUR MILLION) | 2024 | 2023 |
Maintenance | -252.2 | -221.2 |
Electricity and fuel | -147.2 | -155.6 |
Rent, leases and third-party services | -119.1 | -57.2 |
Insurance | -51.9 | -48.0 |
Consultancy and audit fees | -48.0 | -46.2 |
IT costs | -31.1 | -26.2 |
Travel cost | -10.2 | -11.1 |
Sales and marketing costs | -23.2 | -24.5 |
Other operating costs | -162.6 | -106.6 |
Total other operating expenses | -845.5 | -696.5 |
SPECIFICATION OF RIGHT OF USE ASSET 2024 (EUR MILLION) | LAND & BUILDINGS | MACHINERY & EQUIPMENT | TRANSPORT | NETS, PENS & MOORINGS | OTHER | TOTAL |
Opening balance | 72.5 | 36.6 | 948.6 | 6.3 | 5.4 | 1\u00a0069.4 |
New contracts | 22.7 | 8.1 | 268.5 | \u2014 | 1.0 | 300.3 |
Extension and other adjustments of existing agreements | 4.2 | 0.1 | 18.0 | \u2014 | \u2014 | 22.2 |
Termination of agreements | -0.6 | -0.6 | -42.1 | \u2014 | \u2014 | -43.3 |
Foreign currency adjustments | 1.6 | 0.5 | 8.9 | \u2014 | \u2014 | 11.1 |
Total acquisition cost as of 31.12 | 100.3 | 44.7 | 1\u00a0201.9 | 6.4 | 6.4 | 1359.7 |
Accumulated depreciation and impairment losses as of 01.01 | 35.2 | 13.2 | 546.2 | 5.3 | 3.3 | 603.3 |
Depreciation in the year | 9.6 | 11.0 | 205.6 | 0.2 | 0.5 | 227.0 |
Foreign currency adjustments | 0.7 | 0.3 | 3.6 | \u2014 | \u2014 | 4.6 |
Total accumulated depreciation as of 31.12 | 45.4 | 24.5 | 755.5 | 5.5 | 3.9 | 834.8 |
Total carrying amount as of 31.12 | 54.9 | 20.2 | 446.4 | 0.9 | 2.6 | 524.9 |
Depreciation method | Linear | Linear | Linear | Linear | Linear | \u00a0 |
SPECIFICATION OF RIGHT OF USE ASSET 2023 (EUR MILLION) | LAND & BUILDINGS | MACHINERY & EQUIPMENT | TRANSPORT | NETS, PENS & MOORINGS | OTHER | TOTAL |
Opening balance | 67.7 | 20.6 | 755.8 | 7.0 | 5.1 | 856.3 |
New contracts | 4.4 | 14.8 | 115.7 | \u2014 | 0.3 | 135.2 |
Extension and other adjustments of existing agreements | 1.5 | 1.0 | 89.1 | \u2014 | \u2014 | 91.6 |
Termination of agreements | -0.7 | \u2014 | -10.5 | -0.7 | \u2014 | -12.0 |
Foreign currency adjustments | -0.4 | 0.2 | -1.6 | \u2014 | \u2014 | -1.8 |
Total acquisition cost as of 31.12 | 72.5 | 36.6 | 948.6 | 6.3 | 5.4 | 1\u00a0069.4 |
Accumulated depreciation and impairment losses as of 01.01 | 26.0 | 6.4 | 365.5 | 3.9 | 2.5 | 404.2 |
Depreciation in the year | 9.4 | 6.8 | 180.8 | 1.3 | 0.9 | 199.2 |
Foreign currency adjustments | -0.2 | \u2014 | -3.9 | \u2014 | \u2014 | -4.1 |
Total accumulated depreciation as of 31.12 | 35.2 | 13.2 | 542.4 | 5.3 | 3.3 | 599.4 |
Total carrying amount as of 31.12 | 37.3 | 23.4 | 406.3 | 1.1 | 2.0 | 470.1 |
Depreciation method | Linear | Linear | Linear | Linear | Linear | \u00a0 |
RECONCILIATION RIGHT-OF-USE LIABILITIES (EUR MILLION) | 2024 | 2023 |
Opening balance | 473.7 | 462.9 |
New contracts | 299.8 | 135.2 |
Extensions and other adjustments of existing agreements | 22.2 | 91.6 |
Termination of agreements | -45.3 | -12.2 |
Down payment leasing debt (cash movement) | -221.2 | -196.2 |
Currency effects | -11.3 | -7.6 |
Closing balance 31.12 | 517.8 | 473.7 |
Of which non-current liabilities | 338.4 | 299.3 |
Of which current liabilities | 179.4 | 174.5 |
MATURITY ANALYSIS COMMENCED LEASES (EUR MILLION) | 2024 | 2023 |
Less than 1 year | 201.2 | 188.0 |
1-2 years | 149.6 | 132.2 |
2-3 years | 95.7 | 86.7 |
3-4 years | 65.9 | 47.1 |
4-5 years | 29.0 | 26.8 |
More than 5 years | 40.2 | 27.7 |
Sum 31.12 | 581.6 | 508.4 |
Commenced leases consists of future cash flow related to down payment of leases and interest. The group has various contracts that have not yet commenced as of 31 December 2024. The future lease payments for these non-cancellable lease contracts are EUR 19.9 million within one year (EUR 33.0 million), EUR 114.3 million within five years (EUR 201.5 million) and EUR 2.9 million thereafter (EUR 39.2 million).
LEASES EXPENSED (EUR MILLION) | 2024 | 2023 |
Leases not reported as right of use assets1) | 83.8 | 82.8 |
1) Short term leases with contract period less than one year and low value leases.
SUBLEASES (EUR MILLION) | 2024 | 2023 |
Income from subleases | 1.8 | 1.8 |
RESEARCH AND DEVELOPMENT EXPENSES (EUR MILLION) | 2024 | 2023 |
R&D expenses | 44.9 | 35.3 |
FEES TO AUDITORS 2024 (EUR MILLION) | EY | OTHER APPOINTED AUDITORS |
Audit services | -1.8 | -0.3 |
Other assurance services | -0.2 | \u2014 |
Tax services | -0.9 | \u2014 |
Total fees for 2024 | -2.9 | -0.3 |
FEES TO AUDITORS 2023 | EY | OTHER APPOINTED AUDITORS |
Audit services | -1.7 | -0.3 |
Other assurance services | -0.1 | \u2014 |
Tax services | -0.9 | \u2014 |
Total fees for 2023 | -2.7 | -0.3 |
New standards applied
No new standards have been applied in 2024 with significant impact on the financial statements.
New standards - not yet implemented
At the end of 2024, there are some amendments to existing standards/interpretations that are not yet effective but will be relevant for Mowi Group at implementation. Mowi Group intends to adopt these standards, if applicable, when they become effective. The new and amended standards and interpretations that are expected to have a significant impact on the Group's financial statements are listed below.
IFRS 18 Presentation and disclosure in financial statements
IFRS 18 Presentation and Disclosure in Financial Statements replaces existing IAS 1 Presentation of Financial Statements. IFRS 18 have new requirements for presentation within the statement of profit or loss, including specified totals and subtotals, and introduces required classification into the categories operating, investing, financing, income taxes, and discontinued operations. The group is currently assessing the impacts the amendments will have on the presentation of the financial statements and notes.
New standards applied
No new standards have been applied in 2024 with significant impact on the financial statements.
New standards - not yet implemented
At the end of 2024, there are some amendments to existing standards/interpretations that are not yet effective but will be relevant for Mowi Group at implementation. Mowi Group intends to adopt these standards, if applicable, when they become effective. The new and amended standards and interpretations that are expected to have a significant impact on the Group's financial statements are listed below.
IFRS 18 Presentation and disclosure in financial statements
IFRS 18 Presentation and Disclosure in Financial Statements replaces existing IAS 1 Presentation of Financial Statements. IFRS 18 have new requirements for presentation within the statement of profit or loss, including specified totals and subtotals, and introduces required classification into the categories operating, investing, financing, income taxes, and discontinued operations. The group is currently assessing the impacts the amendments will have on the presentation of the financial statements and notes.
On 30 January 2025, Mowi entered into a share purchase agreement with Vigner Olaisen AS to acquire its controlling stake in Nova Sea AS for NOK 7.4 billion (EUR 625 million) through 30% settlement in Mowi shares and 70% in cash. This will increase Mowi's ownership in Nova Sea from 49% to 95%, and Mowi will make a voluntary offer for the remaining 5%. The transaction is subject to competition approval, including from the European Commission, in addition to certain other standard closing conditions.