Mowi fleshes out cost-savings targets in pursuit of 7-8% growth

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class="c-post-content__category">News</a> </li> </ul> <div class="date"> <span class="date-published"></span> </div> </div>  <div class="article-header__content"> <h1 class="article-header__title">Mowi fleshes out cost-savings targets in pursuit of 7-8% growth</h1> <p class="article-header__excerpt">The salmon processor is investing “heavily” in Industry 4.0 technologies.</p> <div class="article-meta"> <span class="article-author"><a href="https://www.just-food.com/author/simonharvey/" title="Posts by Simon Harvey" class="author url fn" rel="author">Simon Harvey</a></span> <span class="date-published">September 27, 2024</span>  </div>  <div class="gdm-article-actions"> <div class="gdm-article-share"> <span class="button-toggle transparent-with-border gdm-article-share__button">Share <ul class="gdm-article-share-list__container"> <li><a href="https://www.just-food.com/news/mowi-fleshes-out-cost-savings-targets-in-pursuit-of-7-8-growth/" class="copy-link">Copy Link</a></li> <li><a href="https://twitter.com/intent/tweet?text=Mowi+fleshes+out+cost-savings+targets+in+pursuit+of+7-8%25+growth%0a&url=https://www.just-food.com/news/mowi-fleshes-out-cost-savings-targets-in-pursuit-of-7-8-growth/&via=just_food" class="x-share" target="_blank">Share on X</a></li> <li><a href="http://www.linkedin.com/shareArticle?mini=true&url=https://www.just-food.com/news/mowi-fleshes-out-cost-savings-targets-in-pursuit-of-7-8-growth/" class="linkedin-share" target="_blank">Share on Linkedin</a></li> <li><a href="https://www.facebook.com/sharer/sharer.php?u=https://www.just-food.com/news/mowi-fleshes-out-cost-savings-targets-in-pursuit-of-7-8-growth/" class="facebook-share" target="_blank">Share on Facebook</a></li> </ul> </span> </div>  </div>   </div>  </header> <section class="article-content"> <div class="main-content"> <div class="article-image"> <figure class="article-image__container"> <picture> <source media="(min-width: 990px)" srcset="https://www.just-food.com/wp-content/uploads/sites/28/2023/10/Your-paragraph-text-5-e1727432670248-770x433.png" /> <source media="(min-width: 430px)" srcset="https://www.just-food.com/wp-content/uploads/sites/28/2023/10/Your-paragraph-text-5-e1727432670248.png" /> <img src="https://www.just-food.com/wp-content/uploads/sites/28/2023/10/Your-paragraph-text-5-e1727432670248-430x241.png" alt="" /> </picture> <figcaption class="c-featured-image__description">Credit: Mowi</figcaption> </figure> </div> <p class="drop-cap">Salmon farmer and processor <a href="https://www.globaldata.com/store/report/?cdmsid=1269131&scalar=true&utm_source=News&utm_medium=28-179254&utm_campaign=company-profile-hyperlink-nonlgp" target="_blank">Mowi</a> is seeking to realise up to €400m ($446.3m) in cost savings over the next five years, largely through new technologies.<br /></p> <p>Norway-headquartered Mowi, which operates across the entire value chain from feeding and farming all the way to the consumer, will largely achieve its objectives via the employment of so-called Industry 4.0 technology.<br /></p><div class="in-article-premium-insights mobile-useragent-scalar"><div class="sidebar-content"><div class="gd-widget related-company-profiles"><header><h3>Related Company Profiles</h3></header><div class="grid-x"><article class="cell large-12"><h4><a href=https://www.globaldata.com/store/report/?cdmsid=1269131&scalar=true&utm_source=News&utm_medium=28-179254&utm_campaign=companies-intelligence-nonlgp target="_blank">Mowi ASA</a></h4></article><span class="view-all mobile-only"><a href="https://www.globaldata.com/companies/" target="_blank" class="new-window">View all</a></span></div></div></div></div> <p>In Mowi’s case, that includes digitalisation, automation and robotics.<br /></p><div id="slot-one"></div> <p>The cost-improvement programme entails savings of €300-400m over five years, which Mowi said are “important to combat inflation, biological measures and more complex regulations”.<br /></p> <p>Technology initiatives will include “remote operation centres, real-time monitoring of biomass, digital lice counting, assisted and automatic feeding, and tracking fish welfare”, the company said in a presentation at its annual capital markets day event.<br /></p> <p>Savings of €307m have already been realised since 2018 through the second quarter of this year, of which €207m came from farming.<br /></p><div class="gdm-company-profile-unit" id="company_profile_form"> <h1 class="gdm-company-profile-unit__heading">How well do you <span style="text-decoration: underline;">really</span> know your competitors?</h1> <p class="gdm-company-profile-unit__sub-heading">Access the most comprehensive Company Profiles on the market, powered by GlobalData. 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Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.</span> </div> </form> </div> </div> </div> </div> <p>CEO Ivan Vindheim said: “We launched Mowi 4.0 in 2021 and since then have invested heavily in a range of measures to introduce greater efficiency and automation across our value chain.<br /></p> <p>“We are already seeing the positive impact this has had on sustainability, productivity and cost reduction, and we expect to reap further benefits in the years to come.”<br /></p><div id="slot-two"></div> <p>Mowi said it is targeting annual revenue growth of 7-8% over the next five years as it aims to reach €8.5bn in 2029, compared to the €5.5bn posted in 2023. Growth was 11% last year and 17% in 2022.<br /></p> <p>Boosting productivity by 10% is a key aim to achieve its revenue target, with Mowi citing wages and personnel expenses as being the second-largest cost item amounting to €648m in 2023.<br /></p> <p>Productivity has risen 18% since 2019 through the second quarter of this year, aided by a 9% decrease in the full-time equivalent (FTE) metric used to measure employee-related costs.<br /></p> <p>Mowi, which supplies branded and private-label fresh and frozen salmon, as well as value-added products, has also set a target to reach an annual output of 600,000 tonnes of fish by 2029, compared to half a million tonnes last year.<br /></p> <p>“We will achieve this through better utilisation of license capacity, while also improving productivity and biological performance of existing production through our investment in postsmolt,” Vindheim said.<br /></p> <p>He added: “The megatrends that in part are driving demand are stronger than ever. 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Mowi fleshes out cost-savings targets in pursuit of 7-8% growth