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Nomad Foods Reports First Quarter 2018 Financial Results

May 10, 2018
Q1 2018 Earnings Press Release
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Q1 2018 Earnings Presentation
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Company Raises 2018 Guidance to the High End of the Prior Range

FELTHAM, England - May 10, 2018 - Nomad Foods Limited (NYSE: NOMD), today reported financial results for the three month period ended March 31, 2018. Key operating highlights and financial performance for the first quarter 2018, when compared to the first quarter 2017, include:

  • Reported revenue increased 1.5% to €539 million
  • Organic revenue growth of 2.9%
  • Reported Profit for the period of €62 million
  • Adjusted EBITDA increased 16% to €103 million
  • Reported EPS of €0.36; Adjusted EPS increased 40% to €0.35
  • Company raises 2018 guidance to €355 to €360 million adjusted EBITDA and €1.10 to €1.13 adjusted EPS

Management Comments

Stéfan Descheemaeker, Nomad Foods’ Chief Executive Officer, stated, “2018 is off to a strong start highlighted by first quarter organic revenue growth of 2.9% and adjusted EPS growth of 40%. These results, which reinforce the sustainability of our growth model, are attributable to the team's focus and execution towards our goals of driving frozen food category growth and increasing our market share. Based on our year-to-date performance and visibility into the balance of the year, we now expect 2018 guidance at the high end of our prior expectations.”

Noam Gottesman, Nomad Foods’ Co-Chairman and Founder, commented, “It is a good time to be in the frozen food business. The category is growing across Western Europe and, in many cases, is out-pacing other packaged food categories. Our strong first quarter performance and plans for the remainder of 2018 put us on track to deliver another year of impressive financial results."

First Quarter of 2018 results compared to the First Quarter of 2017

  • Revenue increased 1.5% to €539 million. Organic revenue growth of 2.9% was driven by 1.5% growth in volume/mix and 1.4% growth in price.
  • Gross profit increased 10% to €171 million. Gross margin expanded 240 basis points to 31.8% due to positive mix and improved pricing and promotional efficiency.
  • Adjusted operating expense decreased 2% to €78 million. Advertising and promotion expense increased 1% to €30 million while Indirect expense decreased 4% to €48 million.
  • Adjusted EBITDA increased 16% to €103 million.
  • Adjusted Profit after tax increased 37% to €62 million reflecting interest rate savings and lower depreciation and amortization. Adjusted EPS increased 40% to €0.35, reflecting Adjusted Profit growth and a lower share count resulting from share repurchases.

2018 Guidance

The Company is raising 2018 guidance to the high end of the prior range and now expects adjusted EBITDA of approximately €355 to €360 million and adjusted EPS of approximately €1.10 to €1.13 per share. Full year guidance continues to assume organic revenue growth at a low-single digit percentage range.