Feltham / UK. (nom) Nomad Foods Limited (Goodfella’s Pizza, Iglo, Findus and other brands) reported financial results for the three and twelve-month periods ended December 31, 2020. Key operating highlights and financial performance for the fourth quarter 2020, when compared to the fourth quarter 2019, include:
- Reported revenue increased 4.7 percent to EUR 658 million
- Organic revenue growth of 9.5 percent
- Reported Profit for the period of EUR 59 million
- Adjusted Ebitda increased 3 percent to EUR 119 million
- Adjusted EPS of EUR 0.38
Key operating highlights and financial performance for the full year 2020, when compared to the full year 2019, include:
- Reported revenue increased 8.2 percent to EUR 2,516 million
- Organic revenue growth of 8.7 percent
- Reported Profit for the period of EUR 225 million
- Adjusted Ebitda increased 8 percent to EUR 467 million
- Adjusted EPS of EUR 1.35
Stéfan Descheemaeker, Nomad Foods’ Chief Executive Officer, stated, «2020 was an unprecedented year for Nomad Foods. I am proud of our collective response to the Covid-19 pandemic, especially our commitment to servicing our customers while prioritizing the health and safety of our employees. The business delivered another year of strong financial performance, establishing a new foundation which we will build on during 2021 by delivering another year of growth across all key metrics. This includes our expectation to grow organically in 2021 which will be complemented by accretion from the Findus Switzerland acquisition and a significant reduction in our share count compared with last year as a result of our active buyback activity since March 2020.»
Noam Gottesman, Nomad Foods’ Co-Chairman and Founder, commented, «We are pleased to report another strong year of growth with financial results ahead of our expectations. Nomad Foods has established itself as a uniquely positioned food company with a sustainable growth profile following four consecutive years of organic revenue growth and a series of complementary acquisitions. We are delivering on our commitment across all three elements of our growth model: organic growth, strong free cash flow generation and disciplined capital allocation. We are excited to build on our success to-date in the coming year which we expect will further differentiate Nomad Foods as a best-in-class food company.»
Fourth Quarter of 2020 results compared to the Fourth Quarter of 2019
- Revenue increased 4.7 percent to EUR 658 million. Organic revenue growth of 9.5 percent was driven by a 8.6 percent growth in volume/mix and a 0.9 percent growth in price.
- Gross profit increased 10 percent to EUR 207 million. Gross margin increased 160 basis points to 31.5 percent due to mix, pricing and promotions.
- Adjusted operating expenses increased 15 percent to EUR 104 million, reflecting a 30 percent increase in Advertising and promotion expense behind new consumer retention and brand building activities. Indirect expenses grew relatively in-line with revenue.
- Adjusted Ebitda increased 3 percent to EUR 119 million and Adjusted Profit after tax increased 9 percent to EUR 68 million due to the aforementioned factors.
- Adjusted EPS increased 19 percent to EUR 0.38, reflecting growth in Adjusted Profit after tax and the cumulative effect of share repurchases conducted versus the prior year. Reported EPS increased 39 percent to EUR 0.32.
Year Ended 2020 results compared to the Year Ended of 2019
- Revenue increased 8.2 percent to EUR 2,516 million. Organic revenue growth of 8.7 percent was driven by a 7.2 percent growth in volume/mix and a 1.5 percent growth in price.
- Gross profit increased 9 percent to EUR 763 million. Gross margin increased 30 basis points to 30.3 percent due to mix, pricing and promotional efficiencies which offset cost of goods inflation.
- Adjusted operating expenses increased 9 percent to EUR 363 million reflecting growth in both Advertising and promotion expense of 5 percent to EUR 125 million and Indirect expense growth of 11 percent to EUR 238 million.
- Adjusted Ebitda increased 8 percent to EUR 467 million and Adjusted Profit after tax increased 12 percent to EUR 263 million, due to the aforementioned factors.
- Adjusted EPS increased 10 percent to EUR 1.35 and Reported EPS increased 46 percent to EUR 1.14.
For the full year 2021, management expects Revenue and Adjusted Ebitda growth of approximately 3-5 percent. 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.