Nomad Foods Sets Ambitious Financial Goals and Efficiency Plan
Nomad Foods Announces New Financial Targets
Nomad Foods Limited (NYSE: NOMD) has recently announced updated financial guidance for the upcoming years, emphasizing its commitment to achieving operational efficiency and growth. The company reiterated its 2025 guidance while unveiling a new, ambitious efficiency program aimed at generating substantial savings. This announcement comes just ahead of their anticipated presentation at a major investor conference, where they will elaborate on these goals.
Efficiency Program Aiming for Substantial Savings
The newly established efficiency program is expected to yield operational savings of €200 million from 2026 to 2028. The program is designed to be broad-based, with a significant contribution anticipated from a new Procurement Transformational Program (PtP). Nomad Foods is also focusing on improving its manufacturing network utilization, cutting logistics costs, and unlocking overhead efficiencies, which are crucial steps to reach their targets.
Operational Goals for 2025
For the fiscal year 2025, Nomad Foods expects organic revenue to remain flat or decline by up to 2% year-on-year. The Adjusted EBITDA is projected to decrease between 3% to 7%, while the Adjusted Earnings Per Share (EPS) is expected to fall within a range of €1.64 to €1.76. Despite these challenges, the company is committed to maintaining a free cash flow conversion rate of 90% or higher.
New Medium-Term Financial Targets
Looking ahead, from 2026 to 2028, Nomad Foods has established a target of 1-3% compound annual growth in Adjusted EBITDA. Additionally, they anticipate a free cash flow growth of approximately 15% during the same period compared to the previous years. This growth is expected to be driven by lower exceptional cash expenses and rigorous working capital management.
Innovative Marketing Strategies
As part of its strategic overhaul, Nomad Foods plans to launch a multi-media Masterbrand campaign directed towards enhancing the appeal of its Birds Eye brand in key markets. Designed to emphasize nutrition and taste, the campaign will provide recipe inspirations for popular products. This initiative is expected to extend further across Europe by 2026, showcasing the company’s commitment to its brand integrity and market presence.
Management's Perspective on Future Growth
Stéfan Descheemaeker, CEO of Nomad Foods, expressed confidence in the company's ability to stabilize market share despite the hurdles faced in 2025. He highlighted numerous initiatives aimed at driving profitable sales growth in the coming years. Meanwhile, CFO Ruben Baldew emphasized the importance of consistent financial performance and the new efficiency measures that reinforce the company's strategy.
Investor Enquiry Information
For further information, investors can reach out to Jason English through email at investorrelations@nomadfoods.com. Furthermore, Oliver Thomas, Head of Corporate Affairs, is available for media-related inquiries at Oliver.Thomas@nomadfoods.com. Such communications play a crucial role in maintaining transparency with shareholders and stakeholders alike.
About Nomad Foods
Nomad Foods is recognized as Europe's leading frozen food company, boasting a portfolio of well-established brands including Birds Eye, Findus, and iglo. The company has a strong reputation for providing high-quality, nutritious, and convenient food options that have become staples in households across the continent.
Frequently Asked Questions
What financial goals has Nomad Foods set for 2025?
Nomad Foods aims for flat to a slight decline in organic revenue, with an Adjusted EBITDA decrease projected between 3% and 7%.
How much savings is the new efficiency program expected to generate?
The efficiency program is expected to deliver €200 million in operational savings from 2026 to 2028.
What marketing strategies are planned?
Nomad Foods will launch a Masterbrand campaign focusing on nutrition and taste, aimed at enhancing brand visibility.
Who can be contacted for investor relations?
Investors can contact Jason English at investorrelations@nomadfoods.com for any inquiries.
What is the role of innovation in Nomad Foods' strategy?
Innovation is key to Nomad Foods' commercial strategy, with new product launches planned across various sub-brands to capture market interest and consumer preferences.
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