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(Bloomberg) — Norwegian salmon farmers saw their second quarter results drop as consumers hit by the higher cost of living bought less pink fish and health issues hurt yields.
Mowi ASA, the world’s biggest salmon grower, said earnings were held back by lower demand in the US and high raw material prices in Europe, posting a 24% decline on earnings before interest and taxes from a year earlier. Competitor Grieg Seafood ASA reported a loss, while Leroy Seafood Group ASA’s operating Ebit fell more than estimated.
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Grieg shares slid as much as 16% in Oslo, their biggest drop since 2022. Mowi gained about 1% and Leroy 3.4% after declines of more than 2% for both stocks on Tuesday following SalMar ASA’s lack-luster report.
Salmon farmers are still struggling with the knock-on effects of winter sores and string jellyfish in Norway from earlier in the year. That’s forced producers to export more fillets at a lower price than what they would get for their superior whole fish.
Grieg’s operations in British Columbia, Canada, were severely impacted by low dissolved oxygen in the water, causing higher death rates, loss of feeding days and reduced growth. Earnings from its farms in Finnmark, Norway’s northernmost region, were hit by low average harvest weight and high costs due to earlier problems with the Spiro parasite and string jellyfish.
Norway’s seafood exports slumped by a record in June, falling by more than 2 billion kroner ($190 million). The Nordic nation makes up more than half of global farmed supply, benefiting from favorable conditions along its fjords and coastline that are difficult to replicate elsewhere.
Industry heavyweight Mowi aims to expand its annual harvest to 500,000 metric tons this year, from 475,000 metric tons in 2023, and said on Wednesday that it wants to continue grow faster than the wider industry by reducing the amount of time smaller fish spend in the sea. The US market is expected to gradually improve as Western economies continue to recover, it said.
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