Mowi ASA’s AGM: A Rubber Stamp for Business as Usual?

Mowi ASA, the Norwegian seafood giant, held its Annual General Meeting (AGM) on June 4, a ceremony that was as predictable as it gets. The company’s board of directors got its way, with all proposed items on the agenda being adopted without any significant opposition. The minutes from the meeting have been made available to shareholders, but it’s unlikely that they’ll find anything to get excited about.

The company’s stock price has been stuck in neutral, with a slight increase from its 52-week low being the only notable development. But don’t be fooled – this is not a sign of strength, but rather a testament to the company’s ability to maintain a stable, if unimpressive, performance. Market sentiment remains positive, driven by Mowi’s commitment to sustainable seafood production and its global market presence. But is this enough to justify the company’s valuation?

• Mowi’s commitment to sustainability is admirable, but it’s not a unique selling point in the seafood industry. Other companies are also making strides in this area, and it’s unclear whether Mowi is truly leading the charge.
• The company’s global market presence is a significant advantage, but it’s also a double-edged sword. Mowi’s operations are spread thin across the globe, which can make it difficult to maintain control and consistency.
• Despite the positive market sentiment, there are still concerns about the company’s profitability. Mowi has struggled to maintain its margins in recent years, and it’s unclear whether the company has a plan to address this issue.

In short, Mowi ASA’s AGM was a predictable and uneventful affair. While the company’s commitment to sustainability and global market presence are positives, they’re not enough to justify the company’s valuation. Shareholders would do well to keep a close eye on the company’s performance and demand more from its board of directors.