Good morning, everyone. My name is Ivan Windheim, and I'm the CEO of MoVI. It is with great pleasure I wish you all welcome to the presentation of MoVI's Q1 results of 2021, also this time around digitally. On that note, I hope you are all doing fine out there under the prevailing circumstances and that we can all meet again physically in not too distant future. With me today to walk us through our financial figures and fundamentals, I have as usual our CFO, Christian Ellingsen.
And after the presentation, our IRO, Kim Dusvik, will facilitate a Q and A session via e mail, where you can submit your questions in advance or as we go along. Please refer to our website at mohe.com for the necessary details. The disclaimer, I think we leave for self study. Then highlights. Overall, I would say the Q1 turned out to become a reasonably good quarter for Mowi, both operationally and financially.
Despite the pandemic, we have managed to keep our more than 200 farms and 35 factories in 25 countries running close to normal by means of maintaining the strictest biosecurity measures all across our business. At the same time, we have also managed to keep our people safe. So a big thanks to all our 12,200 employees that have made that happen. It's much appreciated. Last time we met, we said we expected MoEx's prices in increasing prices in the Q1 on lower season supply and strong demand, partly driven by Lent and Easter season.
This came indeed true, and it's therefore very encouraging to record the highest quarterly operational EBIT since the start of the pandemic of €109,000,000 particularly taking into consideration a 2 digits global supply growth of 14% year over year. That's evidently a clear indication of a very strong underlying salmon market, notwithstanding the ongoing pandemic and the market disruptions it brings about. For the sake, the operational EBIT of €109,000,000 is also in line with the trading update of the 20th April. The increase in profit quarter over quarter is not only explained by increasing prices. Farming volumes of 125,000 tons were also record high for our 1st quarter.
Despite having our share of the issues, I would in general describe biology as reasonably good in the quarter with relatively good growth conditions and thereby good growth. Blended farming cost of €4.20 per kilo was also good in the quarter and substantially down from the €4.62 per kilo we had in the corresponding quarter last year and in the lower end of previous quarters. Bear in mind that the Q1 of last year was highly impacted by low volumes and high released from stock cost driven by elevated mortalities in 2019, especially in the second half of the year. For sales and marketing parts, we had yet another impressive quarter with record high first quarter volumes of 62,000 tons and earnings. On the back of, among others, the pandemic driven shift you have seen from Food Service to retail and supporting tailwinds from Lent and Easter season.
Feed and Feed numbers, On the other hand, we're impacted by low season in the Q1 with all that entailed. Last but not least, the Board of Directors has declared an ordinary dividend of NOK NOK0.77 per share, equivalent to 50% of underlying earnings per share, quarterly dividend for order sake. So much about highlights for the quarter, then over to key financials. Christian will go in-depth on financial figures under his session. So to not disrupt the course of events, we will just touch briefly upon the most important ones now.
Turnover was record high for our Q1 of EUR 1,022,000,000 equivalent to our top line growth of 16% year over year. This is explained by, as already said, record high first quarter farming volumes of 125,000 tons, up as much as 51% year over year. Prices in turn contributed negatively with an overall price achievement down by 19% year over year. Recall that although prices were increasing during the quarter, they came from a very low level. Contrary to the pre pandemic prices E we saw in January February last year that were at record high levels.
And EUR 15 and annualized return on capital employed was 12.7%. In terms of regional margins through the value chain, it was yet again a mixed bag where Norway, Scotland and Ireland stand out as the margin winners, whereas Canada was still in a loss making territory. The margin spread between the regions It is, as you know, to a large extent explained by cost differences and will be duly revisited when we go through the various business entities. Then prices. As already said, it was, as expected, an encouraging first quarter price wise with rising spot prices in all markets on lower seasonal supply and strong demand, partly driven by Lent and Easter season.
We also expect good prices going forward provided that the pandemic does not escalate. Christian will elaborate more on prices and supply demand under his session. Then our own price achievements. Overall, it was 5% below the reference price in the quarter. And I guess you could say it varied from great to rather disappointing.
To start off on a positive notes. We had a very good relative price achievement for salmon of Scottish origin, driven by good contracts and good spot price achievement. For cement of Norwegian origin, it was a rather disappointing price performance, mainly driven by winter source and resultant downgrading. Contracts were neutral in the quarter, more or less. In terms of Wintersource, we managed well for a good while this year until it unfortunately escalated in March.
We have also had some issues in April, but it has diminished as seawater temperatures have picked up. As the name clearly indicates, winter sores are a bacterial infection that primarily affects salmonid fish in seawater during cold periods, conditions under which its main causative agent, moritala viscosa, becomes more pathogenic. Relative price performance for salmon of Canadian and Chilean origin were also below the reference price. The former due to winter source and maturity issues and the latter due to Brazilian prices substantially lower than Oerneberry prices in the quarter, in addition to some downgrading. Then the EBIT waterfall.
Overall, it was an unusual stable development in operational EBIT year over year, EUR 109,000,000 versus EUR 109,000,000. It doesn't get any closer than that, but the mix is different and the same goes for the backdrop of the quarter. Bear in mind that the COVID-nineteen pandemic escalated in mid March last year. So to a large extent, we are comparing our 1st quarter profit numbers this year with pre pandemic numbers. For Farming, that has resulted in EUR 34,000,000 lower EBIT due to lower prices of EUR 138,000,000 in absolute terms.
On the other hand, lower costs and higher volumes We have contributed positively with €53,000,000 €51,000,000 respectively. For Consumer Products, we have yet again benefited from our integrated value chain with our 21 value added factories all around the world and the shift we have seen in demand from foodservice to retail. Year over year, operational EBIT is up by EUR 30,000,000 Other entities are more or less unchanged profit wise. Then it's time to address the various business entities. And as usual, we start with our largest and most important one, Moi Norway.
Operation EBIT was EUR 73,000,000 in the quarter, down from EUR 84,000,000 in the comparable quarter last year. EBIT margin was €0.98 per kilo versus €1.66 last year. As the graph clearly demonstrates, the drop in profit is caused by lower prices only. Both lower costs and record high first quarter volumes contributed positively. As already said under the walk through of the A relative price achievement for Norway, we have had issues with winter source and resultant downgrading in March, which lingered on in April before they diminished as seawater temperatures have picked up.
We have also had some GIL issues and knock on effects in that regard in Mid Norway in the quarter. Other than that, biology and growth conditions have been reasonably good. For the Q2, we expect somewhat higher costs on lower volumes. And then EBIT per kilo per region. Margin wise, it was a mixed bag also this time around for our 3 regions in Norway.
Regionorf stands yet again out as the best margin performer on good production and very low cost NOK 34 per kilo. Region South had a good quarter as as well with a satisfactory cost. Region Mid, on the other hand, suffered from already mentioned gill issues and knock on effects in that regard. In terms of winter source and the magnitude of issues, they have been increasingly burdensome the farther north we get. Then our Norwegian sales contract portfolio.
Due to our positive market view last fall, we deliberately chose to have relatively low contract share for our Norwegian volumes this year, I. E, 65,000 tons on a full year basis or 25% of our total volumes as we speak. In the Q1, contract share was as low as 21%. So far, this has truly been a successful strategy. But for order sake, we reserve the right to change this if we find it timely and opportune.
In terms of prices, the remainder of the volumes for 2021 are in line with the recognized contract prices in the Q1. Then over to Scotland and MoW Scotland. MoW Scotland had yet another great quarter with an operation EBIT of EUR 27,000,000 This is substantially up compared to the same quarter last year on record high first quarter volumes and significantly lower cost. Prices are, as we can see from the graph, down. Both production And biology were good in the quarter.
Other than that, there is not much to say about Moen Scotland this time around. The numbers, they speak for themselves. For the Q2, we expect somewhat higher costs as we harvest from sites outside the Isle of Skye carrying a higher cost level. Then Canada. For Mohe Canada's part, we had yet another loss making quarter on very low prices and albeit being relatively stable, high released from stock cost.
The recently announced turnaround plan for Canada is is progressing, but due to the length of the production cycle, it will take time before this results in lower release from stock cost. Therefore, we expect high costs for MoW Canada in the Q2 as well. Other than that, biology and production were normal in the quarter for Canada. Then further south in America, Chile. MoviChile turned a profit of €8,000,000 in the Q1 after having recorded a loss of €10,000,000 in the 4th quarter.
This is owing to increased prices compared to the Q4. That said, compared to the Q1 last year, The prices are substantially down for Chile as well. Higher volumes and lower release from stock costs have, on the upper hand, contributed positively year over year. The Q1 is summer season in Chile, and this summer has been unusually warm and dry, leading to more issues than normal related to low DO and algae. But all things considered, I think we have managed reasonably well, though with some elevated mortalities.
And now, we are rapidly approaching wintertime in this part of the world and presumably an easier biology. In terms of entered inventory, we still do not carry any frozen inventory. All harvested volumes have been sold at increasing prices. Then The time has come for Moi Island and Moi Faroes. For the salmon of Irish origin, we have had another Impressive quarter with a margin of as high as €4.55 per kilo, partly driven by OVA sales.
And not so impressive margin of €0.48 per kilo, I guess you could say for our ferries operation. But bear in mind that volumes were very low in the quarter, resulting in high share of fixed costs. Mohe Faroes will go back to more normal volumes and costs from the Q2 onwards. In terms of biology and production, There is not much to report this time. Things were reasonably good in the Q1 for both entities.
From farming to our downstream business, Consumer Products. As touched upon initially, the first quarter was a very good quarter for Consumer Products with an operational EBIT of record high €32,000,000 on also record high first quarter volumes, up from EUR 2,000,000 year over year. We saw, as already said, good development in demand, partly driven by tailwinds from Lent and Easter season. Demand in retail continued to be very good on which we yet again have capitalized through our integrated value chain. And although extensive lockdown measures are still in place, we see that out of home consumption has started to improve in some markets.
So we estimate the overall net demand impact from COVID-nineteen in the quarter to be quite neutral. Then our latest addition to the Moi family, Moi Feed. The Q1 is characterized by low season for Moi feed where all that entails on low seawater temperatures in the Northern Hemisphere. And this year was no exception. Operation EBIT of negative EUR 3,000,000 is largely in line with the Q1 of last year of negative €1,000,000 The same goes for the quarterly volumes of 100,000 tons.
Although Brexit has caused some temporary start up issues, Particularly with regard to import certificates, I think we have managed reasonably well so far. And overall, feed production has been satisfactory in the quarter. And the same goes for feed performance. It has been very good in the New Year. Then Christian, the floor is all yours, so you can walk us through our financial figures and fundamentals.
Thank you
so far.
Thank you very much, Ivan. Good morning, everybody. Hope everybody is doing well. As usual, we start with the profit and loss statement, where the top line shows operational revenue of EUR 1,000,000,000 up 16% from Q1 'twenty on significantly higher volumes, partly offset by the Mogi's 19% lower achieved prices. Operational EBIT, EUR 109,000,000 equivalent to return on capital employed of and the presentation of Moog's 12.7%, which is above the 12% target and thus satisfactory.
Operational EBIT stable from Q1 2020, which is a good achievement given that COVID-nineteen has had a full impact on our numbers this quarter. And the effect of lower realized prices was offset by reduced farming costs, higher volumes and improved earnings in sales and marketing, 1st and foremost, our Consumer Products division. Then a few comments on the items between operational EBIT and financial EBIT. We see a net fair value adjustment of biomass of plus €88,000,000 this time around on higher prices at the end of the quarter. Income from associated companies includes the gain of EUR 53,000,000 from the sale of the shares in Das Aqua.
And the rest is related to our associated company NovaSeq, where we are the largest shareholder with 48.5% of the shares. Operationally, NovaSeq had a good result of €1.63 in the quarter. That was somewhat above region North in Mohe on margin on better price performance. And then we move on to the financial position. Total assets are up approximately €1,000,000,000 from the end of last year, as we see, of which increased fair value adjustment in the balance sheet explains approximately EUR 100,000,000.
After remaining movement, the acquisition of 1 farming license in Norwegian North explains approximately EUR 20,000,000. And I would say that the financial position is quite strong with a covenant equity ratio of 56%. The cash flow was positive in the quarter with €185,000,000 cash flow, which took the net interest bearing debt from EUR 1,460,000,000 to EUR 1,270,000,000. Cash flow from operation, as we see, EUR 169,000,000 with a seasonal release of working capital in the Q1. And we see that, that effect was partly offset by tax payments.
Mortgage. Tax payments, however, lower this year due to lower earnings in 2020. And the cash proceeds from the sale of DAS Aqua contributed with EUR113,000,000, so quite a significant effect. This overview of our financing is unchanged from Q4, committed financing of EUR 2,000,000,000 is unchanged and we have approximately EUR 680,000,000 in cash undrawn lines. And we are comfortably within the covenant equity ratio and we have no earnings covenant.
When it comes to the cash flow guiding for 2021, this is unchanged for those items. However, tax payments taken somewhat down as we see here from €80,000,000 to 60 €1,000,000 Working capital tie up €110,000,000 unchanged. We expect to tie up working capital related to organic growth, including increased accounts receivable in sales and marketing on higher prices. CapEx, EUR 265,000,000 unchanged and also interest EUR 45,000,000 unchanged. Then over to market fundamentals.
We start with the supply, as usual. Supply was and the presentation of Moog. It's 14% up versus Q1 2020, so quite a strong increase that was higher than expected, driven by Norway and Chile. In Norway, we saw a 16% increase as we see here. Good growth in sea, more large fish and some farmers reached their MAB limits.
Also colder temperatures in in February and biological challenges led to early harvesting. Chile, plus with 8% as we see here. In Chile, the industry saw early harvest due to the algal bloom and the risk mitigation also harvesting motivated by good prices. And early harvesting and mortality from the Aldeboem and has limited the biomass available for harvesting in the coming quarters. We see here that biomass is down approximately 21% at quarter end versus last year.
Let me take a look at the volume per market. And COVID-nineteen continued, of course, to impact trade flows and the market also in Q1. But as we saw some gradual reopenings in certain markets, we saw that the foodservice demand started to improve in the quarter. So we have a net demand in Q1 approximately neutral in Q1 2021 from pre COVID-nineteen levels on a 20% to 25% increase in retail and foodservice down approximately 40%. So that means that while we had a negative net demand effect in the prior quarters, we now have approximately neutral effect.
Consumption in EU and UK increased 21%, Good Growth in Retail. All in all, we haven't seen much reopenings so far in Europe in Foodservice. Lockdown measures continued into the Q1, which limited consumption from the Foodservice segment. U. K.
We opened the restaurants for indoor dining on 17th May. So we will see the effects from that now in the coming time. In the U. S, we saw an increase volumes by 11%, continued strong retail sales, gradual improvement in foodservice, 40% approximately of the population in the U. S.
Are now fully vaccinated. And further vaccination is expected to continue to reopen foodservice in the time ahead. And we see that retail is still good for salmon, which is very positive. In Asia, we see here that we had an increase all in all by 6%, good growth in with Japan, Korea, also other Asia. In Japan, consumption was strong, increased 24% year over year.
Still restrictions on eating out in Japan, but the big sushi chains were not materially affected due to increased takeaway Capabilities. In Korea, we also saw a good growth, driven by improved retail and also foodservice demand. Order Asia, mainly due to strong growth in Thailand, increased demand from retail, also a gradual recovery in the Foodservice segment. We see China Hong Kong stands out, minus 27% compared with Q1 last year. They are on the road to recovery in China, but still below pre COVID-nineteen levels.
And we are now currently seeing some more lockdowns in Asia, somewhat more challenging COVID-nineteen situation in some of the regions in Asia. There might be temporary slowdowns in Foodservice, but that should be positive for retail. And then we take a look at the price development over the quarter and also continuing into the most recent weeks. If we start with the quarter, then the total effect quarter over quarter. Ostrad prices were down.
As we have said already, -23% in Norway, as we see, -7% in Chile back to plant, adjusted for the higher airfreight and minus 12% in Canada. So this corresponds well with the overall 19% decrease we saw in MOWI versus Q1 2020. But we see in the graph here very positive that prices and Moab. In Europe, we went from a NASDAQ price of 4.4 at the start of the year and ended the quarter at 6.81 So a strong development there, up 50%. We have had a positive development also after quarter ended.
For Canadian origin, we had an impact of COVID-nineteen lockdown in Canada, but prices have increased in the last weeks. And in Europe and Chile, prices are strong. The figures for Onaberry came in this morning. Canada West, EUR 3.7 billion, EUR 6.20 billion, EUR 6.20 billion, EUR 6.25 billion. So we continue to see a strong development in the American prices.
We have a very positive market outlook, lower supply, continued demand recovery should be a very favorable combination in all regions. Yeah. If you look forward and and see how the supply growth is expected to be. Then for Q2, as we see here for the Q2, we expect a negative growth of 0% to minus 4%, driven by Chile. They are expected to be reduced by between minus 21% and minus 25%.
Norway between plus 4% and plus 7%. And also for the second half, we expect a reduction, negative growth between -2% and plus 1%. So in other words, we expect a much tighter market balance going forward. We expect a total 2021 growth of 1% to 4%. I guess the midpoint is around 2.4% here in the numbers.
There are some roundings. MoVI. So a tight market balance as we see it. In Norway, we have indicated a growth of 7% to 9% for the year. And Szele, the expectation is a volume decrease of 14% to 16%.
When it comes to our own volume guidance, we maintain our 2021 volume guidance and changed from the report to be issued in the Q4. So with that, We have come to the outlook and the floor is all yours again, Johan.
Thank you, Christian. Much appreciated. Then it's time to conclude before we wrap it all up with our Q and A session facilitated by our IRO, Kim Dusswig. As said a few times already, we are optimistic about the market prospects going forward. The market is the way we see it on the road to full recovery.
Concurrently, we have built new markets gradually during with the pandemic and the recovery of the Foodservice segment after the pandemic we think will only bolster an already strong demand for the Atlantic salmon. Combined with a modest supply outlook for 2021 of 2% and 0% the next 12 months, that bodes well for prices going forward. With Moen's low contract share and integrated value chain, we are in a good positioned to capitalize on this. In terms of harvest volumes, we maintain our full year harvest guidance of 445,000 tons. And lastly, and as already stated, The Board of Directors has declared an ordinary quarterly dividend of NOK 0.77 per share, equivalent to 50% of underlying earnings per share.
Then, Kim, I think we are ready for the Q and A session. If Christian can come up here on the podium. At least 1 meter from me. Okay, Kim, you're ready.
Very good. So we have some questions from the equity analysts. The first Mo. He has two questions. How do you expect the price achievement in Norway and the UK versus the reference price to develop in the second quarter.
That's the first one.
Yes. So maybe I can take this one. So we never commented on prices in advance. So and that would also be illegal. So this is so we have to play by the rules.
So the answer is that we will revert to this when we release our numbers in August after the summer.
And his second question, do you expect the same volumes and margins in Consumer Products also after the pandemic?
And we do not guide on future earnings and future margins, but the long term target X branding is 5% for consumer products. So nothing has changed in that regard. But giving exact and precise guidance for the future, we don't do.
Okay. Moving on to Christian Norbe in Kepler. He has A question on volume distribution. Is the volume distribution within 2021 part of a strategy that we can extrapolate into 2022 and beyond? Or should we expect to see a more normal seasonal distribution in the coming years?
In terms of harvest profile.
Harvest profile.
Yes. So the target is always to have it as balanced as possible. But that's always a challenge because of biology and Moab in Nature. But again, that's always the long term target. So I guess the answer is, we hope that we are more balanced in the years to come than what we have Bin in the previous years.
But I guess it remains too busy.
And then a follow-up question on that from Alexander Euchner in DNB. He's got 2 questions. The first one on the harvest profile in the UK. It seems unusually front end loaded. Any reasons for the high share of harvest in H1 versus H2 this year.
Well, It's a broad picture. First, we have been through a very good growth period in Europe, not only in the Q1, but particularly in the 3rd Q4 of last year. In addition, we also have a strategy in Scotland to get out our volumes before the challenging Q3 season. So I guess It's mixed. It's 2 fold.
So but it's ideal to put like that, keeping more volumes Morgan Stanley. Then what you have to into the Q3 is never a good strategy in Scotland because of high seawater temperatures. Bear in mind that the temperatures in Scotland, they are higher than what we are used to in Norway, and they also have more shallow waters, and that doesn't help either.
Okay. Then his second question of Movin. It's on COVID-nineteen. It seems like you're guiding on retail sales to have a positive effect post COVID-nineteen. Do you expect further retail demand in 2021 on top of the growth already seen last year?
Or do you mean a general positive effect on long term basis?
So this is not to offend anyone to start with that. But the demand for SAMLEN has grown for more than 50 years. So In the long term, I personally believe that the COVID-nineteen is and now it's maybe an offense to someone, but that's not the intention. But in long term, I personally think COVID-nineteen is just a bump in the road really. We will continue to grow the retail markets.
We will also continue to grow the foodservice market. So the demand for the salmon We just continue in our view and we will do our share to make that happen. The salmon ticks off all the boxes. So in addition also had the megatrends. And we are also elaborating more than what we have done in the past.
So this will just go on. That's our take.
Okay. Very good. Moving on To Nils Thomason in family. He has a follow-up questions How do you expect the margin development in Consumer Products for the remainder of 2021? Will we see a similar margins as which we saw in 2020 or will the margins be diluted by foodservice activity coming back?
I guess we touched on this question a few minutes ago. So we do not guide on future margins, neither for Consumer Products nor for the rest of our business. But in general, on rising or increasing prices, Mohe will become more profitable. So but we have an integrated value chain. Sometimes you win in one part of it, sometimes you win in another part of it, but that's the profitability will increase going forward.
If the prices continue to increase. That part, I think we all can expect. And
Okay. Then changing topic, Alexander Jones from Bank of America. He has a question on branding. What has been the customer feedback so far on the rollout. And is this different in the different regions?
And how does the pricing premium they are willing to charge consumers are willing to pay compared to your expectations.
Again, we have to be a little bit careful about what we talk about when it comes to prices and Market Strategy. So this first, we have business secrets. But second, we also have with some rules we have to play by. We have in general, we have increased our Moab branding activities this spring. So we are launching the Moab brand in many new markets, including bricks and mortars in the U.
S, in bricks and mortars in the U. K. We Also, our launching in Belgium, Italy, partly in Spain. We are also addressing at Chile, Brazil, Colombia. So the activity level is increasing and the response in general is Very good.
But when it comes to pricing our products, etcetera, that part we must keep to ourselves at this point in time. But and it's not so easy for you, I know, to travel around and see what the prices in the shelf are. But I guess through some help from your colleagues out there, you can get the numbers. But the specifics. We will not reveal on this webcast.
That would be we would be wrong.
Okay. And then a question from the investor community from Bjorn Wiklun. He is asking about feed. How should we model feed prices going forward, among others taking into account
So temporarily commodities are inflated, so the cost is increasing. But we have been through in such periods previously. So assuming that this is permanent, I would not do, because all commodity prices have a tendency to revert to mean or to average. So but in the short term, Mikkelund is right. Soy is up, but the same goes for the other commodities.
So the short term development is unfortunately negative. But again, we have been there before. And I guess we will see a mean reversion also this time around when the negative factors
Okay. Then another question from the investors, Jan Molnes, Holberg Fauna. How do you think MoVI is handling the algae bloom in Chile Mo. Better than the other players.
We don't like to talk about our peers or about our colleagues and friends in the other Leagues and friends in the other companies. We like to talk about ourselves, but I think we have managed Vit well this time around. We learned the lesson back in 2016. So now we have sophisticated mitigation systems in place that really helped us this time around. In addition, you also need some luck in this.
So Even the best farmer runs into problem once in a while. So, Mother Nature is a very important component in this. But all All in all, I think we managed well really and not only because of luck, but also because of the mitigation systems we have in place and good husbandry and good people. So good people and good equipment really makes a difference too. So you need both, luck, good people and with the right equipment.
I guess that sums it up.
And then his Second question is on sales in Asia, if we can comment on the sales development in that region.
Yes, so maybe you, Christian, will take this one.
Yes. We have seen a very good development in Asia in the quarter, as we stated. Most regions in Asia have seen a good volume development with China is still, as we said, minus 27% versus Q1 last year. But in general, we've seen double digit growth in the various regions. And we believe also China is on the road to recovery.
There have been some issues related to Chilean imports and some positive developments when it comes to Norwegian into China. So right now, we are seeing some new lockdowns in some of the regions. It's a bit difficult to say exactly how that will play out. And we believe in any case that any impacts on Foodservice is temporary, and we will continue to see reopenings over time in Asia and a combination of increases in Foodservice and Retail.
And then a follow-up question from Bjorn Vikloon. He is asking If we can comment on our perspectives for farmed salmon becoming compliant with the EU taxonomy.
And that's a tricky one. So if you ask us, Our personal view is, I guess, it's a no brainer. We really think the salmon ticks off all the boxes. But in the end of the day, it's not up to us to decide. So and it looks like it will take time before and the Commission conclude.
Also for the Oil Industries, this doesn't seem straightforward, but Salmon is a part of solution in our view. And if we really want to take down the greenhouse gas emissions. We have to change the way we consume food. Food is accounting for 25% of the greenhouse gas emissions. So it makes a difference.
And salmon and his the most sustainable animal protein out there in terms of greenhouse gas emissions. So it makes sense to eat more salmon, more fish. It's also very healthy. So we live longer. We also become smarter.
So again, Eat More Salmon. And then we, of course, also have to produce more salmon. That has been a little bit challenging for the industry over the past few years, but it looks like there is some underlying growth in that regard. So back to the So back to the commission and this taxonomy is really hard to answer. We don't know, but our personal view, and I guess it's quite obvious.
Yes. And that concludes the questions we have received so far from the investors and analysts.
Thank you, Kim, and thank you to all of you who spent time on us this morning. And things are improving out there. Let's hope that we get 100 percent shipshape, all of us, markets, economies, societies, etcetera. Vit. We'll meet again in August.
Meanwhile, take care all of you.