Nomad Foods Reports Second Quarter 2025 Financial Results

Retail sell-out growth accelerated through mid-June and market share improved in the quarter

Unfavorable weather presented unforeseen net sales headwinds

Lowering guidance given first half shortfall and to increase flexibility to absorb other unforeseen shortfalls

WOKING, England - August 6, 2025 - Nomad Foods Limited (NYSE: NOMD), today reported financial results for the three and six month period ended June 30, 2025.

Key operating metrics and financial performance for the second quarter 2025, when compared to the second quarter 2024, include:

• Revenue decreased 0.8% to €747 million
• Organic revenue declined 1.1% with a volume decline of 1.0%
• Adjusted gross margin contracted 310 bps
• Adjusted EBITDA decreased 7.2% to €129 million
• Adjusted EPS decreased 9.1% to €0.40

Management Comments
Stéfan Descheemaeker, Nomad Foods’ Chief Executive Officer, stated, "This year is proving to be more challenging than expected. Record-setting warm weather across many Western European markets has disrupted consumer behavior, leading to changes in retailer merchandising strategies and contributing to volume declines, particularly within our savory frozen categories. While this is unfortunate, we also recognize that it is transitory and our focus remains on what we can control. Our commercial flywheel remains effective, and our innovation and renovation initiatives are gaining momentum. This allowed us to improve market share in the quarter and accelerate our Nielsen and Circana measured retail sell-out growth to +1%, bringing our year-to-date retail sell-out growth to +0.7% through mid-June. We are excited about our innovation and activation plans and, assuming normalized weather, expect our organic sales to return to growth in the second half of the year. We are also taking incremental productivity actions to better equip us to control our own destiny and deliver consistent bottom-line growth and robust cash generation."

Noam Gottesman, Nomad Foods’ Co-Chairman and Founder, commented, “While Nomad Foods has faced a number of external headwinds this year, I am encouraged by the improved in-market performance that the Company has achieved. The Company’s ability to stabilize market share in the quarter demonstrates that its commercial plans are working. Furthermore, Nomad’s growth initiatives for the remainder of this year and next year are impressive, and I believe that category growth will recover which will translate into strong financial results going forward. The underlying health of the business is strong."

Second Quarter of 2025 results compared to the Second Quarter of 2024

• Revenue decreased 0.8% to €747 million. Organic revenue decreased by 1.1% and was driven by a volume decline of 1.0% and price/mix decline of 0.1%.
• Adjusted gross profit decreased 10.8% to €208 million. Adjusted gross margin decreased 310 basis points to 27.8% due primarily to supply chain inflation headwinds.
• Adjusted operating expenses decreased 11.4% to €103 million due to a double-digit contraction in overhead costs in the quarter. Advertising and Promotion was down modestly YoY in the quarter and has risen 5% through the first half of the year.
• Adjusted EBITDA decreased 7.2% to €129 million due to the aforementioned factors and Adjusted Profit for the period decreased 16% to €61 million.
• Adjusted EPS decreased by €0.04 to €0.40 reflecting the decrease in Adjusted Profit for the period and fewer shares outstanding. Diluted EPS decreased €0.06 to €0.37.

First Six Months of 2025 results compared to the First Six Months of 2024

• Revenue decreased 1.9% to €1,507 million. Organic revenue decreased by 2.4% and was driven by a volume decline of 2.3%. and a decline in price/mix of 0.1%.
• Adjusted gross profit decreased 5.5% to €419 million. Adjusted gross margin decreased 110 basis points to 27.8%, due to supply chain inflation headwinds, partially offset with supply chain productivity and the lapping of inventory revaluation headwinds in the prior year.
• Adjusted operating expenses decreased 4.2% to €219 million as overhead cost reductions more than offset a mid single-digit year-to-date increase in Advertising and Promotion expense.
• Adjusted EBITDA decreased 4.7% to €249 million due to the aforementioned factors. Adjusted Profit for the period decreased 14% to €114 million.
• Adjusted EPS decreased by €0.07 to €0.74 reflecting the decrease in Adjusted Profit for the period and fewer shares outstanding. Diluted EPS decreased €0.07 to €0.58.

2025 Guidance
The Company is lowering its full-year guidance given weaker-than-expected first half results and to enhance its ability to absorb other unforeseen disruptions in the second half of the year, were they to occur. Full year organic revenue is now expected to be flat to -2% versus the prior expectation of a 0%-2% year-on-year change. The full year Adjusted EBITDA guidance range is now -3% to -7% year-on-year versus its prior outlook of 0%-2% year-on-year. Adjusted EPS is now expected to be in a range of €1.64 to €1.76 versus the previous range of €1.82-€1.89. Based on USD/EUR exchange rate as of July 30, 2025, this translates into 2025 Adjusted EPS range of $1.89 to $2.02. The Company is maintaining its full year adjusted free cash flow conversion guidance of 90% or greater.

Conference Call and Webcast
A pre-recorded management discussion of Nomad Foods' second quarter 2025 earnings and accompanying presentation is available at www.nomadfoods.com under Investor Relations. The Company will host a live question-and-answer session to discuss these results today, Wednesday, August 6, 2025 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 +1-844-676-5834 and international listeners may dial +1-412-634-6811. Additionally, the call is being webcast and can be accessed at the Nomad Foods website. A replay of the 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 10200924.

Enquiries
Investor Relations Contact
Jason English
investorrelations@nomadfoods.com

Media Contact
Oliver Thomas, Head of Corporate Affairs
Oliver.Thomas@nomadfoods.com

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.

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, 2025 and for comparative purposes, the three and six months ended June 30, 2024.

Adjusted financial information for the three and six months ended June 30, 2025 and 2024 presented in this press release reflects the historical reported financial statements of Nomad Foods, adjusted primarily for, when they occur, share based payment expenses and related employer payroll taxes, non-operating M&A related costs, acquisition purchase price adjustments, 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, net financing income/(cost) on amendment of terms of debt, interest cost on tax relating to legacy tax audits, foreign exchange translation gains/(losses), foreign exchange gains/(losses) on derivatives, 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 for the period provides important comparability of underlying operating results, allowing investors and management to assess operating performance on a consistent basis.

Adjusted EPS is defined as diluted 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, net financing income/(cost) on amendment of terms of debt, interest cost on tax relating to legacy tax audits, foreign exchange translation gains/(losses), foreign exchange gains/(losses) on derivatives, 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 and six months ended June 30, 2025 and 2024 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 period over period.

Adjusted Gross Profit and adjusted gross margin exclude accelerated depreciation associated with restructuring programs 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 Free Cash Flow – Adjusted free cash flow is the amount of cash generated from operating activities less cash flows related to exceptional items (as described above), non-operating M&A related costs and working capital movements on employer taxes associated with share based payment awards, plus capital expenditure (on property, plant and equipment and intangible assets), net interest paid, proceeds/(payments) on settlement of derivatives where hedge accounting is not applied and payments of lease liabilities. Adjusted free cash flow reflects cash flows that could be used for payment of dividends, repayment of debt or to fund acquisitions or other strategic objectives.

Cash flow conversion is Adjusted Free Cash Flow as a percentage of Adjusted Profit for the period.

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 9 to 14, 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. The Company is unable to reconcile, without unreasonable efforts, Organic Growth, Adjusted EBITDA and Adjusted EPS guidance to the most directly comparable IFRS measure.