Nomad Foods: Reports First Quarter 2022 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, 2022. Key operating highlights and financial performance for the first quarter 2022, when compared to the first quarter 2021, include:

  • Reported revenue increased 3.6 percent to EUR 733 million
  • Organic revenue decline of 4.5 percent
  • Reported Profit for the period of EUR 56 million
  • Adjusted Ebitda decreased 4.4 percent to EUR 132 million
  • Adjusted EPS decreased 8.5 percent to EUR 0.43

Management Comments

Stéfan Descheemaeker, Nomad Foods’ Chief Executive Officer, stated, «In our first quarter results, we performed well against strong pandemic comparisons and a difficult macro backdrop, proving the resilience of our business model. The Ukraine conflict created dislocations across our supply chain, and I am proud of how well our team delivered under these difficult circumstances. In addition, we have rapidly adjusted to inflationary changes in the market and plan to recoup rising input costs through more price increases this year while remaining hedged on key inputs for 2022 and beyond. During the quarter, we achieved total revenue growth of +3.6 percent with positive market share momentum and a clear focus on innovation. As a result, we are on pace to deliver another year of double-digit Adjusted EPS growth, expecting EUR 1.71-EUR 1.75 per share for the year.»

Noam Gottesman, Nomad Foods’ Co-Chairman and Founder, commented, «We formed Nomad Foods to invest in people, brands and growth underpinned with strong cash flow and a disciplined capital allocation strategy. Notwithstanding recent macro challenges, our foundation remains strong, we are growing market share, and we see great opportunities ahead of us in both the near-term and long-term. Notably, we are pleased with the ongoing integration of Fortenova’s frozen food business and see continued upside in that exciting enterprise. Overall, we remain focused on execution – supply chain, innovation and our value proposition to consumers – and continue to believe we are well-positioned for 2022 and for growth in the longer-term.»

First Quarter of 2022 results compared to the First Quarter of 2021

  • Revenue increased 3.6 percent to EUR 733 million. Organic revenue decline of 4.5 percent was comprised of a 6.1 percent decline in volume/mix partially offset by a 1.6 percent increase in price.
  • Adjusted Gross profit decreased 4.8 percent to EUR 205 million. Adjusted gross margin decreased 250 basis points to 27.9 percent, driven by higher raw material costs and the inclusion of the Fortenova frozen food business acquisition whose gross margins are below that of the base business.
  • Adjusted operating expenses was unchanged at EUR 94 million.
  • Adjusted Ebitda decreased 4.4 percent to EUR 132 million and Adjusted Profit for the period decreased 10 percent to EUR 75 million due to the aforementioned factors.
  • Adjusted EPS decreased 8.5 percent to EUR 0.43, reflecting a decline in Adjusted Profit after tax. Reported EPS increased 14.3 percent to EUR 0.32.

2022 Guidance

The Company is reiterating Adjusted EPS guidance of EUR 1.71 to EUR 1.75 for 2022, representing 10-13 percent growth. This guidance assumes high-single-digit revenue growth with a modest organic revenue gain and the inclusion of the Fortenova frozen food business for the full-year.