Nomad Foods Reports First Quarter 2023 Financial Results

Revenue growth of +5.8% with Adjusted EPS of €0.46

Updated Full Year Adjusted EPS Guidance of €1.52 - €1.55

FELTHAM, England - Nomad Foods Limited (NYSE: NOMD), today reported financial results for the three month period ended March 31, 2023. Key operating highlights and financial performance for the first quarter 2023, when compared to the first quarter 2022, include:

• Reported revenue increased 5.8% to €775 million
• Organic revenue growth of 8.0%
• Reported Profit for the period of €41 million
• Adjusted EBITDA increased 11.3% to €146 million
• Adjusted EPS increased 7.0% to €0.46

Management Comments
Stéfan Descheemaeker, Nomad Foods’ Chief Executive Officer, stated, “Nomad Foods got off to an exciting start in 2023 as our revenue momentum from the second half of last year continued through the beginning of this year. During the quarter, we grew organic sales 8.0%, Adjusted EBITDA 11.3%, and Adjusted EPS 7.0% year-over-year. Our strong overall performance benefited from double-digit pricing realization, disciplined supply chain management, and the roll-out of the new commercial and supply chain strategies that we announced in February. As a result of this strong performance, we are raising the bottom end of our expected Adjusted EPS range to €1.52 from €1.50. Our new guidance stands at €1.52 to €1.55, based on the expectation of mid-single-digit revenue growth and Adjusted Free Cash Flow conversion in the range of 90% to 95%, which are both unchanged from our original guidance.”

Noam Gottesman, Nomad Foods’ Co-Chairman and Founder, commented, “We are delighted to report a strong set of results to start 2023, anchored by leading brands, top-notch people, and excellent supply chain execution. The steps we took to further refine and protect our business last year were evident in our performance during this quarter and have proved Nomad Foods’ continued resilience. We delivered double-digit pricing, maintained our investment in long-term growth, and expanded margins, which positions us well for the balance of the year and gives us confidence to deliver our revised guidance. Frozen food remains a compelling value proposition to our consumers in any economic environment, and we see more opportunities ahead. We will continue to invest in sustainable growth and driving value for shareholders.”

First Quarter of 2023 results compared to the First Quarter of 2022

• Revenue increased 5.8% to €775 million. Organic revenue growth of 8.0% was comprised of a 7.1% decline in volume/mix offset by a 15.1% increase in price.
• Gross profit increased 9.5% to €224 million. Gross margin increased 100 basis points to 28.9%, linked to the successful recovery of higher input costs through pricing, and a benefit in the cost of goods sold from the tail end of cover positions from 2022.
• Adjusted operating expenses increased 6.1% to €100 million.
• Adjusted EBITDA increased 11.3% to €146 million and Adjusted Profit for the period increased 7% to €81 million due to the aforementioned factors.
• Adjusted EPS increased 7.0% to €0.46, reflecting the increase in Adjusted Profit after tax. Reported EPS decreased 25.0% to €0.24.

2023 Guidance
For the full year 2023, management now expects Adjusted EPS of €1.52 to €1.55 versus our previous guidance of €1.50 to €1.55. We have raised the bottom end of our range to €1.52 from €1.50. Full year guidance assumes mid-single-digit organic revenue growth and Adjusted Cash Flow conversion in the range of 90% to 95%.

Conference Call and Webcast
The Company will host a conference call with members of the executive management team to discuss these results today, Wednesday, May 10, 2023 at 1:30 p.m. BST (8:30 a.m. Eastern Daylight Time). To participate on the live call, listeners in North America may dial +1-844-826-3033 and international listeners may dial +1-412-317-5185. Additionally, there will be a presentation to accompany the conference call and the call is being webcast. Both can be accessed at the Nomad Foods website at www.nomadfoods.com under Investor Relations. A replay of the conference call will be available on the Company website for two weeks following the event and can be accessed by listeners in North America by dialing +1-844-512-2921 and by international listeners by dialing +1-412-317-6671; the replay pin number is 10177893.

Nomad Foods Contacts
Investor Relations Contact
Anthony Bucalo
Nomad Foods Limited
+1-914-907-8724

About Nomad Foods
Nomad Foods (NYSE: NOMD) is Europe’s leading frozen food company. The Company’s portfolio of iconic brands, which includes Birds Eye, Findus, iglo, Ledo and Frikom, have been a part of consumers’ meals for generations, standing for great tasting food that is convenient, high quality and nutritious. Nomad Foods is headquartered in the United Kingdom. Additional information may be found at www.nomadfoods.com.

Financial Information
Nomad Foods is presenting Adjusted and Organic financial information, which is considered non-IFRS financial information, for the three months ended March 31, 2023 and for comparative purposes, the three months ended March 31, 2022.

Adjusted financial information for the three months ended March 31, 2023 and 2022 presented in this press release reflects the historical reported financial statements of Nomad Foods, adjusted primarily for share based payment expenses and related employer payroll taxes, non-operating M&A related costs, exceptional items and foreign currency translation charges/gains.

Adjusted EBITDA is profit or loss for the period before taxation, net financing costs, depreciation and amortization, adjusted to exclude, when they occur, the impacts of exited markets, acquisition purchase price adjustments and exceptional items such as restructuring charges, goodwill and intangible asset impairment charges and other unusual or non-recurring items. In addition, we exclude other adjustments such as the impact of share based payment expenses and related employer payroll taxes, and non-operating M&A related costs, because we do not believe they are indicative of our normal operating costs, can vary significantly in amount and frequency, and are unrelated to our underlying operating performance. The Company believes Adjusted EBITDA provides important comparability of underlying operating results, allowing investors and management to assess operating performance on a consistent basis.

Adjusted EBITDA should not be considered as an alternative to profit/(loss) for the period, determined in accordance with IFRS, as an indicator of the Company’s operating performance.

Adjusted Profit for the period is defined as profit for the period excluding, when they occur, the impacts of exited markets, acquisition purchase price adjustments and exceptional items such as restructuring charges, goodwill and intangible asset impairment charges, unissued preferred share dividends, as well as certain other items considered unusual or non-recurring in nature. In addition, we exclude other adjustments such as the impact of share based payment expenses and related employer payroll taxes, and non-operating M&A related costs, because we do not believe they are indicative of our normal operating costs, can vary significantly in amount and frequency, and are unrelated to our underlying operating performance. The Company believes Adjusted Profit after tax provides important comparability of underlying operating results, allowing investors and management to assess operating performance on a consistent basis.

Adjusted EPS is defined as basic earnings per share excluding, when they occur, the impacts of exited markets, acquisition purchase
price adjustments and exceptional items such as restructuring charges, goodwill and intangible asset impairment charges, as well as certain other items considered unusual or non-recurring in nature. In addition, we exclude other adjustments such as the impact of share based payment expenses and related employer payroll taxes, and non-operating M&A related costs, because we do not believe they are indicative of our normal operating costs, can vary significantly in amount and frequency, and are unrelated to our underlying operating performance. The Company believes Adjusted EPS provides important comparability of underlying operating results, allowing investors and management to assess operating performance on a consistent basis.

Organic revenue growth/(decline) is an adjusted measurement of our operating results. The comparison for the three months ended March 31, 2023 and 2022 presented in this press release takes into consideration only those activities that were in effect during both time periods. Organic revenue growth/(decline) reflects reported revenue adjusted for currency translation and non-comparable trading items such as expansion, acquisitions, disposals, closures, trading day impacts or any other event that artificially impacts the comparability of our results.

Adjustments for currency translation are calculated by translating data of the current and comparative periods using a budget foreign exchange rate that is set once a year as part of the Company's internal annual forecast process.

Adjusted and Organic non-IFRS financial information should be read in conjunction with the unaudited financial statements of Nomad Foods included in this press release as well as the historical financial statements of the Company previously filed with the SEC.

Nomad Foods believe its non-IFRS financial measures provide an important additional measure with which to monitor and evaluate the Company’s ongoing financial results, as well as to reflect its acquisitions. Nomad Foods’ calculation of these financial measures may be different from the calculations used by other companies and comparability may therefore be limited. The Adjusted and Organic financial information presented herein is based upon certain assumptions that Nomad Foods believes to be reasonable and is presented for informational purposes only and is not necessarily indicative of any anticipated financial position or future results of operations that the Company will experience. You should not consider the Company’s non-IFRS financial measures an alternative or substitute for the Company’s reported results and are cautioned not to place undue reliance on these results and information as they may not be representative of our actual or future results as a Company.

Please see on pages 7 to 10, the non-IFRS reconciliation tables attached hereto and the schedules accompanying this release for an explanation and reconciliation of the Adjusted and Organic financial information to the most directly comparable IFRS measure.