Nomad Foods: Reports First Quarter 2021 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, 2021. Key operating highlights and financial performance for the first quarter 2021, when compared to the first quarter 2020, include:

  • Reported revenue increased 3.6 percent to EUR 707 million
  • Organic revenue growth of 1.8 percent
  • Reported Profit for the period of EUR 49 million
  • Adjusted Ebitda of EUR 138 million
  • Adjusted EPS of EUR 0.47

Management Comments

Stéfan Descheemaeker, Nomad Foods’ Chief Executive Officer, stated, «This year is off to a strong start with first quarter revenue and Adjusted EPS marking a record level of quarterly performance. We achieved healthy organic revenue growth notwithstanding year-ago comparisons which reflected elevated growth resulting from pantry loading at the onset of the pandemic. This was complemented by 180 basis points of Adjusted Ebitda margin expansion driven by strong gross margins and expense discipline. The combination of strong base business performance, the inclusion of Findus Switzerland and accretion from share repurchases in 2020 led to Adjusted EPS growth of 42 percent in Q1. These results have us on pace to deliver another stellar year for Nomad Foods.»

Noam Gottesman, Nomad Foods’ Co-Chairman and Founder, commented, «Organic growth, margin expansion and capital allocation all contributed to robust first quarter results. This strong performance gives us further confidence in our 2021 guidance which will mark our 5th consecutive year of organic revenue and Adjusted EPS growth. While we are proud of these results, we remain excited about the future as we work to capitalize on our momentum, integrate Findus Switzerland and close the acquisition of Fortenova’s Frozen Food Business Group later this year. This latest acquisition will expand our frozen food leadership into eight new markets, introduce us to the ice cream category and present multiple avenues for value creation in the coming years. Meanwhile, we have the financial flexibility to remain opportunistic as we explore new opportunities to build value for shareholders.»

First Quarter of 2021 results compared to the First Quarter of 2020

  • Revenue increased 3.6 percent to EUR 707 million. Organic revenue growth of 1.8 percent was comprised of 1.9 percent increase in volume/mix and a 0.1 percent decrease in price.
  • Adjusted Gross profit increased 8 percent to EUR 215 million. Adjusted gross margin increased 130 basis points to 30.4 percent as favorable mix in the base business, strong procurement execution and lower promotional activity more than offset dilution from the inclusion of the Findus Switzerland acquisition.
  • Adjusted operating expenses decreased 2 percent to EUR 94 million, reflecting a normalization of spend versus the prior year period where operating expense growth was relatively elevated.
  • Adjusted Ebitda increased 15 percent to EUR 138 million and Adjusted Profit for the period increased 24 percent to EUR 84 million due to the aforementioned factors.
  • Adjusted EPS increased 42 percent to EUR 0.47, reflecting growth in Adjusted Profit after tax and the cumulative effect of share repurchases conducted during the prior year. Reported EPS increased 22 percent to EUR 0.28.

2021 Guidance

The Company is reiterating 2021 guidance. Revenue and Adjusted Ebitda are expected to grow approximately 3-5 percent and Adjusted EPS is expected to be approximately EUR 1.50 to EUR 1.55, representing 11-15 percent growth. Full year guidance assumes organic revenue growth of approximately 1-2 percent. Guidance does not yet include the pending acquisition of Fortenova’s Frozen Food Business Group, which is expected to close during the third quarter of 2021.