Nomad Foods Reports Second Quarter 2021 Financial Results

Adjusted EPS of €0.40 Represents 18% Growth versus 2020 and a 22% CAGR versus 2019

Company Reiterates Full Year Guidance

Announces a New Share Repurchase Authorization of up to $500 million

FELTHAM, England - Nomad Foods Limited (NYSE: NOMD), today reported financial results for the three and six month period ended June 30, 2021. Key operating highlights and financial performance for the second quarter 2021, when compared to the second quarter 2020, include:

• Reported revenue decreased 1% to €596 million
• Organic revenue decline of 4.5%
• Reported Profit for the period of €51 million
• Adjusted EBITDA increased 4% to €123 million
• Adjusted EPS increased 18% to €0.40

Management Comments
Stéfan Descheemaeker, Nomad Foods’ Chief Executive Officer, stated, “We achieved strong results during the second quarter notwithstanding easing of restrictions across Europe and the anniversary of peak COVID-related demand. Second quarter 2021 Adjusted EPS of €0.40 represents 18% growth versus 2020 and 22% on a two-year basis. Results were driven by improving market share trends, a recovering foodservice business, accretive allocation of capital and successfully navigating a dynamic inflationary backdrop. With more than half of the year behind us, we remain confident in achieving our 2021 guidance."

Noam Gottesman, Nomad Foods’ Co-Chairman and Founder, commented, “Second quarter results clearly demonstrate the power of our value creation model as resilient base business performance was complemented by accretion from the Findus Switzerland acquisition and the effect of last year’s share repurchases. We are eager to close on the acquisition of Fortenova’s Frozen Food Business Group, a transaction that is expected to result in 2021 Adjusted EPS in excess of $2.00 on a combined and annualized basis and set a new baseline for growth. We have exciting growth opportunities, both organically and inorganically, and the approval of a new share repurchase authorization provides added flexibility to enhance shareholder value while maintaining a reasonable leverage profile."

Second Quarter of 2021 results compared to the Second Quarter of 2020

• Revenue decreased 1% to €596 million. Organic revenue decline of 4.5% was comprised of a 4.4% decline in volume/mix and a 0.1% decline in price.
• Gross profit increased 1% to €184 million. Gross margin increased 50 basis points to 30.8% driven by productivity and transactional FX which more than offset dilution from the inclusion of the Findus Switzerland acquisition.
• Adjusted operating expenses decreased 3% to €77 million, reflecting growth in Advertising & Promotion and a decline in Indirect costs.
• Adjusted EBITDA increased 4% to €123 million and Adjusted Profit for the period increased 6% to €72 million due to the aforementioned factors.
• Adjusted EPS increased 18% to €0.40, reflecting growth in Adjusted Profit after tax and the cumulative effect of share repurchases conducted during the prior year. Reported EPS decreased 9% to €0.29.

First Six Months of 2021 results compared to the First Six Months of 2020

• Revenue increased 2% to €1,303 million. Organic revenue decline of 1.2% was comprised of a 1.1% decline in volume/mix and a 0.1% decline in price.
• Adjusted Gross profit increased 4.9% to €399 million. Adjusted gross margin increased 90 basis points to 30.6% driven by productivity and transactional FX which more than offset dilution from the inclusion of the Findus Switzerland acquisition.
• Adjusted operating expenses decreased 3% to €172 million, reflecting comparable Advertising & Promotion spend versus the prior year and a decline in Indirect costs.
• Adjusted EBITDA increased 9% to €261 million and Adjusted Profit for the period increased 15% to €155 million due to the aforementioned factors.
• Adjusted EPS increased 30% to €0.87, reflecting growth in Adjusted Profit after tax and the cumulative effect of share repurchases conducted during the prior year. Reported EPS increased 2% to €0.56.

2021 Guidance
The Company is reiterating 2021 guidance. Revenue and Adjusted EBITDA are expected to grow approximately 3-5% and Adjusted EPS is expected to be approximately €1.50 to €1.55, representing 11-15% growth. Full year guidance assumes organic revenue growth of approximately 1-2%. Guidance does not yet include the pending acquisition of Fortenova's Frozen Food Business Group, which is expected to close at the end of the third quarter of 2021.

New Share Repurchase Authorization
The Company’s Board of Directors has approved a new share repurchase authorization of up to $500 million. This new program replaces the previous authorization which was established in March 2020 and has been nearly exhausted.

Conference Call and Webcast
A live audio webcast of the conference call and an accompanying presentation will both be available at Nomad Foods’ website at www.nomadfoods.com under Investor Relations. Additionally, participants in North America may dial +1-646-876-9923 and international participants may dial +44-330-088-5830 to access the live call using the webinar ID 91651303974. A replay of the webcast will be available on the Company website following the event.

Nomad Foods Contacts
Investor Relations Contacts
Taposh Bari, CFA
Nomad Foods Limited
+1-718-290-7950

John Mills
ICR, Partner
+1-646-277-1254

Media Contact
Felipe Ucros
Gladstone Place Partners
+1-212-230-5930

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, Aunt Bessie’s and Goodfella’s, 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.

Non-IFRS Financial Information
Nomad Foods is presenting Adjusted and Organic financial information, which is considered non-IFRS financial information, for the three and six months ended June 30, 2021 and for comparative purposes, the three and six months ended June 30, 2020.

Adjusted financial information for the three and six months ended June 30, 2021 and 2020 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.

EBITDA is profit or loss for the period before taxation, net financing costs, depreciation and amortization. Adjusted EBITDA is EBITDA adjusted to exclude, when they occur, the impacts of exited markets, acquisition purchase price adjustments, chart of account (“CoA”) alignments 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, chart of account (“CoA”) alignments 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, chart of account (“CoA”) alignments 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 EPS provides important comparability of underlying operating results, allowing investors and management to assess operating performance on a consistent basis.

Organic revenue growth is an adjusted measurement of our operating results. The comparison for the three and six months ended June 30, 2021 and 2020 presented in this press release takes into consideration only those activities that were in effect during both time periods. Organic revenue growth reflects reported revenue adjusted for currency translation and non-comparable trading items such as expansion, acquisitions, disposals, closures, chart of account (“CoA”) alignments, trading day impacts or any other event that artificially impacts the comparability of our results.

Adjusted Gross Profit and adjusted gross margin exclude acquisition purchase price adjustments and other unusual or non-recurring items within cost of goods sold.

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 8 to 13, 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.