16 July 2024
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Global Industry

Nomad Foods: Reports Q1-2024 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, 2024. Key operating highlights and financial performance for the first quarter 2024, when compared to the first quarter 2023, include:

  • Reported revenue increased 1.1 percent to EUR 784 million
  • Organic revenue growth of 0.3 percent
  • Adjusted Ebitda decreased 16.4 percent to EUR 122 million
  • Adjusted EPS of EUR 0.37

Management Comments

Chief Executive Officer Stéfan Descheemaeker: «I am pleased with the solid start to the year as our first quarter’s results demonstrated tangible progress on our key growth initiatives. Our volume and market share trends improved sequentially as targeted investments and exceptional execution at retail is driving accelerated growth in our core must-win-battles. Looking ahead, I am excited about our building momentum as our growth flywheel starts to spin faster, fueled by our outstanding progress on productivity initiatives and a more favorable costs environment. As a result, we are maintaining our full year guidance to deliver revenue growth of 3 percent-4 percent, Adjusted Ebitda growth of 4 percent-6 percent, and Adjusted EPS of EUR 1.75-EUR 1.80.»

Co-Chairman and Founder Noam Gottesman: «We are delighted with the trajectory of the business as our strategies to return to volume growth in 2024 are working. Frozen food categories remain healthy and we are well-positioned to leverage our strong brands, impactful innovation, and excellent supply-chain into delivering sustained, top-tier sales and profit growth in 2024 and beyond. Our attractive organic growth outlook coupled with strong cash generation, and disciplined capital allocation gives us the confidence that we will continue to generate superior returns for our shareholders.»

First Quarter of 2024 results compared to Q1-2023

  • Revenue increased 1.1 percent to EUR 784 million. Organic revenue growth of 0.3 percent was driven by favorable price/mix of 2.5 percent. Quarterly volume declines moderated to -2.2 percent, a marked improvement from -8.0 percent in 4Q23.
  • Gross profit decreased 5.9 percent to EUR 211 million. Gross margin decreased 200 basis points to 26.9 percent as anticipated impact from balance sheet inventory revaluation due to lower inflation more than offset positive contribution from favorable mix and higher productivity.
  • Adjusted operating expenses increased 11.5 percent to EUR 112 million due to the planned increase in A+P investments, ongoing investments in building capabilities, and inflationary headwinds.
  • Adjusted Ebitda decreased 16.4 percent to EUR 122 million due to the aforementioned factors.
  • Adjusted Profit for the period decreased 25 percent to EUR 61 million, and as a result, Adjusted EPS decreased by EUR 0.09 to EUR 0.37. Reported EPS decreased EUR 0.03 to EUR 0.21.

2024 Guidance

For the full year 2024, the Company continues to expect organic revenue growth of 3 percent-4 percent, driven by positive volume/mix, Adjusted Ebitda growth of 4 percent-6 percent, and Adjusted EPS of EUR 1.75-EUR 1.80, implying growth of 9-12 percent. Based on USD/EUR exchange rate as of May 1st, this translates into 2024 Adjusted EPS of USD 1.87-USD 1.93. The Company expects full year cash flow conversion in the range of 90 percent to 95 percent.


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