Nomad Foods: Reports Q4 and Full Year 2021 Financial Results

Feltham / UK. (nom) Nomad Foods Limited (Goodfella’s Pizza, Iglo, Findus and other brands) reported financial results for the three and twelve-month periods ended December 31, 2021.

Key operating highlights and financial performance for the fourth quarter 2021, when compared to the fourth quarter 2020, include:

• Reported revenue increased 7.0 pecent to EUR 704 million
• Organic revenue decline of 4.5 pecent
• Reported Profit for the period of EUR 29 million
• Adjusted Ebitda decreased 5 pecent to EUR 113 million
• Adjusted EPS of EUR 0.33

Key operating highlights and financial performance for the full year 2021, when compared to the full year 2020, include:

• Reported revenue increased 3.6 pecent to EUR 2,607 million
• Organic revenue decline of 2.1 pecent
• Reported Profit for the period of EUR 181 million
• Adjusted Ebitda increased 4 pecent to EUR 487 million
• Adjusted EPS of EUR 1.55

Management Comments

Stéfan Descheemaeker, Nomad Foods’ Chief Executive Officer, stated, «We are pleased to report strong operational and financial performance in 2021 and a fifth consecutive year of revenue, Adjusted Ebitda and Adjusted EPS growth. Following an exceptional year of growth in 2020, we focused this year on consolidating our consumer gains through product innovation and impactful promotion, while ensuring our supply chain was fit for purpose as we drove investments in capacity expansion and efficiency programs. Despite a difficult operating environment, we delivered a 4 pecent increase in Adjusted Ebitda to EUR 487 million and a 15 pecent increase in Adjusted EPS to EUR 1.55, reflecting the resilience of our operating model, the strength of our brands and our focus on maximizing value for our shareholders.»

Noam Gottesman, Nomad Foods’ Co-Chairman and Founder, commented, «Our 2021 results mark a new record level of financial performance for our company. In addition to delivering Adjusted EPS at the top-end of guidance, this year’s notable achievements include a successful refinancing of our debt, the integration of Findus Switzerland, the acquisition of Fortenova’s frozen food business for EUR 615 million, as well as over $75 million of share repurchases during the fourth quarter. Having established a strong platform for growth over the last five years, we are confident our business is well-positioned to repeat this pattern of growth in 2022 and beyond.»

Fourth Quarter of 2021 results versus Fourth Quarter of 2020

• Revenue increased 7.0 pecent to EUR 704 million. Organic revenue decline of 4.5 pecent was driven by a 3.1 pecent decline in volume/mix and a 1.4 pecent decline in price.
• Adjusted gross profit decreased 10 pecent to EUR 186 million. Adjusted Gross margin declined 500 basis points to 26.5 pecent due to cost of goods inflation and promotions. The inclusion of Findus Switzerland and Fortenova Frozen, whose margins are seasonally low during the fourth quarter, diluted gross margins by 150 basis points. Fortenova Frozen’s gross margins are expected to be slightly accretive on a full year basis in 2022.
• Adjusted operating expenses decreased 9 pecent to EUR 94 million, reflecting a more normalized level of Advertising and promotion spend relative to the prior year where the company invested EUR 10 million behind new consumer retention and brand building activities. Indirect expenses increased in-line with revenues.
• Adjusted Ebitda decreased 5 pecent to EUR 113 million and Adjusted Profit after tax decreased 15 pecent to EUR 58 million due to the aforementioned factors.
• Adjusted EPS decreased 13 pecent to EUR 0.33, reflecting growth in Adjusted Profit after tax. Reported EPS decreased 50 pecent to EUR 0.16.

Year Ended 2021 results compared to the Year Ended of 2020

• Revenue increased 3.6 pecent to EUR 2,607 million. Organic revenue decline of 2.1 pecent was driven by a 1.6 pecent decline in volume/mix and a 0.5 pecent decline in price.
• Adjusted gross profit decreased 1 pecent to EUR 753 million. Adjusted Gross margin declined 140 basis points to 28.9 pecent due to cost of goods inflation and mix from the acquisitions of Findus Switzerland and Fortenova Frozen.
• Adjusted operating expenses decreased 7 pecent to EUR 338 million reflecting a decline in both Advertising and promotion and Indirect expense.
• Adjusted Ebitda increased 4 pecent to EUR 487 million and Adjusted Profit after tax increased 5 pecent to EUR 277 million, due to the aforementioned factors.
• Adjusted EPS increased 15 pecent to EUR 1.55 and Reported EPS decreased 11 pecent to EUR 1.02.

2022 Guidance

For the full year 2022, management expects double digit growth in Adjusted EPS to a range of EUR 1.71 to EUR 1.75. Full year guidance assumes reported revenue growth of high single-digit percentage and organic revenue growth at a low-single digit percentage.