Nomad Foods: Announces Q3-2022 Preliminary Financial Results

Feltham / UK. (nom) Nomad Foods Limited (Goodfella’s Pizza, Iglo, Findus and other brands) on October 31 announced selected preliminary financial results for the three month period ended September 30, 2022. Nomad Foods Limited will report its complete Q3-2022 statement before the New York Stock Exchange opens on November 09, 2022. The complete release will be avaiable on the company’s web server. Preliminary financial performance for the third quarter 2022, when compared to Q3-2021, includes:

• Reported revenue increased 26.7 percent to EUR 760 million
• Organic revenue increase of 7.2 percent
• Gross margin increased 110 basis points to 29.1 percent
• Adjusted Ebitda increased 35.3 percent to EUR 153 million

Management Comments

Stéfan Descheemaeker, Nomad Foods’ Chief Executive Officer, stated, «I am pleased to report that Nomad Foods performed very well in the third quarter as our business delivered pricing recovery and a solid underlying performance. Our revenues grew by nearly 27 percent year-on-year, reflecting organic revenue growth of more than 7 percent year-on-year as well as the contribution from our recent acquisition, which is also growing relative to its prior year’s results. We successfully executed double-digit price increases in the quarter to offset input cost pressures, and we fully expect to deliver further price increases in the fourth quarter to re-build margins in preparation for next year. We are reiterating our full-year 2022 Adjusted EPS expectation range of EUR 1.65 to EUR 1.71. As we recover our margins to longer-term levels and focus on maximizing our input cost coverage, we are positioning Nomad for sustainable growth into 2023 and beyond. We remain confident in our ability to deliver our EUR 2.30 Adjusted EPS target for 2025.»

Noam Gottesman, Nomad Foods’ Co-Chairman and Founder, commented, «Nomad Foods demonstrated another quarter of extraordinary resilience driven by our world-class brands, supply chain and people. Execution is a hallmark of our organization, and our brands remain highly competitive in a dynamic market. We are focused on prudent investments in the business, especially supply chain improvements, to successfully manage through this historically difficult macro environment. We expect to emerge stronger and positioned for sustainable growth. We have a compelling track record of driving strong earnings growth, and we will keep focus on compounding the value of our operating results for our shareholders.»

Third Quarter of 2022 preliminary results compared to Q3-2021

• Revenue increased 26.7 percent to EUR 760 million. Organic revenue increase of 7.2 percent was comprised of a 3.4 percent decline in volume/mix offset by a 10.6 percent increase in price.
• Gross profit increased 31.9 percent to EUR 221 million. Gross margin increased 110 basis points to 29.1 percent, driven by higher pricing offsetting higher raw material costs across the business.
• Adjusted Ebitda increased 35.3 percent to EUR 153 million while Ebitda margin improved 130 basis points to 20.2 percent.

2022 Guidance

The Company is affirming its Adjusted EPS guidance range of EUR 1.65 to EUR 1.71, representing high-single digit Adjusted EPS growth. This guidance assumes high-single digit revenue growth, low-single digit organic revenue growth, and the inclusion of Fortenova’s frozen food business for the full-year.