16 July 2024
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Global Industry

Nomad Foods: Reports Q1-2023 Financial Results

Feltham / UK. (nom) Nomad Foods Limited (Goodfella’s Pizza, Iglo, Findus and other brands) reported financial results for the three month period ended March 31, 2023. Key operating highlights and financial performance for the first quarter 2023, when compared to the first quarter 2022, include:

  • Reported revenue increased 5.8 percent to EUR 775 million
  • Organic revenue growth of 8.0 percent
  • Reported Profit for the period of EUR 41 million
  • Adjusted Ebitda increased 11.3 percent to EUR 146 million
  • Adjusted EPS increased 7.0 percent to EUR 0.46

Management Comments

Stéfan Descheemaeker, Chief Executive Officer, stated, «Nomad Foods got off to an exciting start in 2023 as our revenue momentum from the second half of last year continued through the beginning of this year. During the quarter, we grew organic sales 8.0 percent, Adjusted Ebitda 11.3 percent, and Adjusted EPS 7.0 percent year-over-year. Our strong overall performance benefited from double-digit pricing realization, disciplined supply chain management, and the roll-out of the new commercial and supply chain strategies that we announced in February. As a result of this strong performance, we are raising the bottom end of our expected Adjusted EPS range to EUR 1.52 from EUR 1.50. Our new guidance stands at EUR 1.52 to EUR 1.55, based on the expectation of mid-single-digit revenue growth and Adjusted Free Cash Flow conversion in the range of 90 percent to 95 percent, which are both unchanged from our original guidance.»

Noam Gottesman, Co-Chairman and Founder, commented, «We are delighted to report a strong set of results to start 2023, anchored by leading brands, top-notch people, and excellent supply chain execution. The steps we took to further refine and protect our business last year were evident in our performance during this quarter and have proved Nomad Foods’ continued resilience. We delivered double-digit pricing, maintained our investment in long-term growth, and expanded margins, which positions us well for the balance of the year and gives us confidence to deliver our revised guidance. Frozen food remains a compelling value proposition to our consumers in any economic environment, and we see more opportunities ahead. We will continue to invest in sustainable growth and driving value for shareholders.»

First Quarter of 2023 results compared to Q1-2022

  • Revenue increased 5.8 percent to EUR 775 million. Organic revenue growth of 8.0 percent was comprised of a 7.1 percent decline in volume/mix offset by a 15.1 percent increase in price.
  • Gross profit increased 9.5 percent to EUR 224 million. Gross margin increased 100 basis points to 28.9 percent, linked to the successful recovery of higher input costs through pricing, and a benefit in the cost of goods sold from the tail end of cover positions from 2022.
  • Adjusted operating expenses increased 6.1 percent to EUR 100 million.
  • Adjusted Ebitda increased 11.3 percent to EUR 146 million and Adjusted Profit for the period increased 7 percent to EUR 81 million due to the aforementioned factors.
  • Adjusted EPS increased 7.0 percent to EUR 0.46, reflecting the increase in Adjusted Profit after tax. Reported EPS decreased 25.0 percent to EUR 0.24.

2023 Guidance

For the full year 2023, management now expects Adjusted EPS of EUR 1.52 to EUR 1.55 versus our previous guidance of EUR 1.50 to EUR 1.55. We have raised the bottom end of our range to EUR 1.52 from EUR 1.50. Full year guidance assumes mid-single-digit organic revenue growth and Adjusted Cash Flow conversion in the range of 90 percent to 95 percent.


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