Nomad Foods Limited Reports Third Quarter Financial Results
Strong growth strategy highlights volume and revenue improvements
Revenue growth: +0.8%, Adjusted EPS: +28% YoY to €0.55
Revised full-year guidance due to ERP transition challenges
Nomad Foods Limited (NYSE: NOMD) recently announced its financial performance for the third quarter of the year, demonstrating resilience amid operational hurdles. The company's results for the quarter ending September 30 exhibit various strengths when compared to the same quarter from the previous year.
Key Financial Highlights
Notable financial results for Q3 2024:
- Reported revenue: Up 0.8% to €770 million.
- Organic revenue growth: 0.3% attributed to volume expansion, despite facing a temporary 2.5% headwind due to ERP implementation issues.
- Adjusted EBITDA: Rose 19.0% to €166 million.
- Adjusted EPS: Increased 28% to €0.55.
Management Insights
CEO Stéfan Descheemaeker expressed satisfaction with the team's performance, emphasizing the company's ability to drive profitable volume growth. He noted that the European Frozen category remains robust, with market share recovering through focused innovation and marketing strategies.
Descheemaeker also addressed the challenges from ERP disruptions, indicating that while service levels were affected during the transition, the situation is improving. He acknowledged the necessity to adjust the full-year organic sales growth outlook while continuing to invest in operational capabilities.
Third Quarter Performance Comparison
Comparative thoughts:
- Revenue: Increased by 0.8% from €763.5 million in Q3 2023 to €770 million.
- Gross profit: Rose 14.5% to €248 million, with gross margin climbing by 390 basis points to 32.3%.
- Adjusted operating expenses: Increased by 6.8% to €107 million, reflecting ongoing investments and inflationary pressures.
- Adjusted profit: Achieved €89 million, translating to an Adjusted EPS of €0.55, compared to €0.44 the previous year.
Looking Forward: 2024 Guidance
Nomad Foods revised its full-year 2024 guidance, reflecting a shift to an expected organic revenue growth of 1%-2% from a previous forecast of 3-4%. This adjustment primarily pertains to the impact of ERP challenges experienced in Q3.
Management anticipates Adjusted EBITDA growth within a range of 3%-5%, alongside an Adjusted EPS prediction of €1.72-€1.77, suggesting a 7-10% increase as compared to earlier expectations.
Investor and Media Contacts
For inquiries, investors and media can reach out to:
Investor Relations Contact: Jason English
Media Contact: Elaine McCrimmon, Group Corporate Affairs Director
Frequently Asked Questions
What were the key results for Nomad Foods in Q3 2024?
Nomad Foods reported a revenue increase of 0.8% to €770 million and an Adjusted EPS growth of 28% to €0.55.
How did ERP challenges impact the financial outlook?
Due to ERP disruptions, Nomad Foods revised its organic revenue growth outlook for 2024 to 1%-2% from the prior 3%-4% expectation.
What contributed to the increase in Adjusted EBITDA?
The increase in Adjusted EBITDA to €166 million was driven by strong volume growth and effective cost management strategies.
Who can I contact for more information about Nomad Foods?
For further inquiries, please contact Investor Relations, Jason English, or Media Contact, Elaine McCrimmon.
What is the stock ticker for Nomad Foods?
Nomad Foods trades on the NYSE under the ticker symbol NOMD.
