Nomad Foods: Reports Second Quarter 2022 Financial Results

Feltham / UK. (nom) Nomad Foods Limited (Goodfella’s Pizza, Iglo, Findus and other brands) reported financial results for the three and six month periods ended June 30, 2022. Key operating highlights and financial performance for the second quarter 2022, when compared to the second quarter 2021, include:

  • Reported revenue increased 17.0 percent to EUR 697 million
  • Organic revenue decline of 3.2 percent
  • Reported Profit for the period of EUR 75 million
  • Adjusted Ebitda increased 2.9 percent to EUR 127 million
  • Adjusted EPS remained unchanged at EUR 0.40

Management Comments

Stéfan Descheemaeker, Nomad Foods’ Chief Executive Officer, stated, «I am pleased with our second quarter performance, which saw our overall revenue base rise by 17 percent and our market share remain steady in a dynamic pricing environment. We are adjusting our business well to inflationary pressures and believe that supply chains are normalizing. However, in light of the continuing war in Ukraine, its collateral risks and European consumer sentiment, we are taking a more conservative posture to full year earnings. We are revising our Adjusted EPS expectation for the year to a range of EUR 1.65 to EUR 1.71 for 2022. Despite our cautious outlook for the year, we believe our business is stronger today than at any other time in our history and we are confident we remain on track to deliver our EUR 2.30 Adjusted EPS target for 2025.»

Noam Gottesman, Nomad Foods’ Co-Chairman and Founder, commented, «Nomad Foods showed extraordinary resilience this quarter, and we continue to recognize compelling near-term and long-term opportunities ahead of us enabled by strong underlying cash flow, our brands and our people. We are focused on execution and have maintained share in a highly competitive market while staying focused on investments in the business, especially the supply chain improvements necessary to navigate this historically difficult environment. Long term, we will remain focused on a disciplined capital allocation strategy to enhance the success of our operating results for shareholders. We remain well-positioned for 2022 and for growth beyond this year.»

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

  • Revenue increased 17.0 percent to EUR 697 million. Organic revenue decline of 3.2 percent was comprised of a 5.7 percent decline in volume/mix partially offset by a 2.5 percent increase in price.
  • Adjusted Gross profit increased 7.2 percent to EUR 197 million. Adjusted gross margin decreased 260 basis points to 28.2 percent, driven by higher raw material costs offset with higher pricing, and the inclusion of the Fortenova’s frozen food business acquisition whose gross margins are above that of the base business.
  • Adjusted operating expenses increased 19.1 percent to EUR 92 million, driven by the inclusion of the Fortenova’s frozen food business acquisition.
  • Adjusted Ebitda increased 2.9 percent to EUR 127 million and Adjusted Profit for the period decreased 1.7 percent to EUR 70 million due to the aforementioned factors.
  • Adjusted EPS flat at EUR 0.40. Reported EPS increased 48.3 percent to EUR 0.43.
  • First Six Months of 2022 results compared to the First Six Months of 2021

  • Revenue increased 9.7 percent to EUR 1,430 million. Organic revenue decline of 3.9 percent was comprised of a 5.9 percent decline in volume/mix partially offset by a 2.0 percent increase in price.
  • Adjusted Gross profit increased 0.7 percent to EUR 402 million. Adjusted gross margin decreased 250 basis points to 28.1 percent, driven by higher raw material costs and offset with higher pricing, and the inclusion of the Fortenova’s frozen food business acquisition whose gross margins are above that of the base business.
  • Adjusted operating expenses increased 8.6 percent to EUR 187 million, driven by the inclusion of the Fortenova’s frozen food business acquisition.
  • Adjusted Ebitda decreased 0.9 percent to EUR 258 million and Adjusted Profit for the period decreased 6.2 percent to EUR 146 million due to the aforementioned factors.
  • Adjusted EPS decreased 3.4 percent to EUR 0.84, reflecting a decline in Adjusted Profit after tax. Reported EPS increased 33.9 percent to EUR 0.75.
  • 2022 Guidance

    The Company is updating Adjusted EPS guidance to a range of EUR 1.65 to EUR 1.71 from the previous range of EUR 1.71 to EUR 1.75 for 2022, representing high-single digit Adjusted EPS growth. This guidance assumes high-single digit revenue growth, low-single digit organic revenue growth, and the inclusion of Fortenova’s frozen food business for the full-year.

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