WOKING, England – Nomad Foods Limited (NYSE: NYSE:), Europe’s leading frozen food company, today announced a slight increase in its first-quarter revenue, which rose 1.1% to €784 million, compared to the same period last year. However, the company missed analyst expectations for adjusted earnings per share (EPS), reporting €0.37 against estimates of €0.40.
The company’s revenue also fell short of the consensus estimate of €797.63 million. Despite these misses, Nomad Foods confirmed its full-year 2024 guidance, expecting organic revenue growth of 3%-4%, adjusted EBITDA growth of 4%-6%, and adjusted EPS of €1.75-€1.80. This guidance indicates a 9-12% growth in adjusted EPS, translating to $1.87-$1.93 based on the current exchange rate.
Stéfan Descheemaeker, CEO of Nomad Foods, expressed satisfaction with the company’s start to the year, highlighting improvements in volume and market share trends. “Our growth flywheel starts to spin faster, fueled by our outstanding progress on productivity initiatives and a more favorable costs environment,” Descheemaeker said. The company is maintaining its full-year guidance due to these positive trends.
Organic revenue growth for the quarter was a modest 0.3%, driven by a favorable price/mix of 2.5%. However, quarterly volume declines moderated to -2.2%, a marked improvement from -8.0% in the fourth quarter of 2023. Adjusted EBITDA decreased by 16.4% to €122 million, while gross profit decreased by 5.9% to €211 million. The gross margin also saw a decrease of 200 basis points to 26.9%.
Nomad Foods’ commitment to delivering revenue growth and adjusted EBITDA growth is supported by its strong brand portfolio, which includes Birds Eye, Findus, iglo, Ledo, and Frikom. The company’s focus on targeted investments and execution at retail is expected to drive accelerated growth in its core markets.
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The company’s financial position remains strong, with expectations for full-year cash flow conversion ranging from 90% to 95%. As Nomad Foods continues to navigate the challenges of the frozen food industry, it is poised to leverage its strong brands and supply chain to deliver sustained sales and profit growth.
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