Share LinkedinFacebookTwitterE-mail Financial Nomad Foods Reports Third Quarter 2017 Financial Results Nov 28, 2017 Q3 2017 Earnings Press Release pdf 775.22kB Q3 2017 Earnings Presentation pdf 1.82MB Nomad Foods Reports Third Quarter 2017 Financial Results Company Raises 2017 Guidance FELTHAM, England - November 28, 2017 - Nomad Foods Limited (NYSE: NOMD), today reported financial results for the three and nine month periods ended September 30, 2017. Key operating highlights and financial performance for the third quarter 2017, when compared to the third quarter 2016, include: Reported revenue increased 4.4% to €459 million Organic revenue growth of 5.9% Reported Profit for the period of €42 million Adjusted EBITDA decreased 8% to €79 million Reported EPS of €0.24; Adjusted EPS increased 9% to €0.24 Company raises 2017 Adjusted EBITDA guidance to approximately €325 to €327 million Management Comments Stéfan Descheemaeker, Nomad Foods’ Chief Executive Officer, stated, “We experienced strong growth in the third quarter with revenue, gross margin and adjusted EBITDA exceeding our expectation. Results, including 5.9% organic revenue growth, reflect favorable category performance coupled with market share gains. We are pleased by the momentum in the business, with Q3 representing a third consecutive quarter of organic revenue growth and market share expansion. Based on our year-to-date performance, we are raising our 2017 guidance.” Noam Gottesman, Nomad Foods’ Co-Chairman and Founder, commented, “Third quarter results reflect another quarter of solid execution and further validation of our growth strategy. Our momentum is underpinned by a strong balance sheet and a portfolio of iconic, market leading brands. As a result, we continue to be encouraged by our growth prospects within European frozen and beyond." Third Quarter of 2017 results compared to the Third Quarter of 2016 Revenue increased 4.4% to €459 million. Organic revenue growth of 5.9% was driven by 4.1% growth in volume/mix and 1.8% growth in price. Gross profit increased 8.6% to €139 million. Gross margin expanded 120 basis points to 30.3% driven by positive mix and improved pricing and promotional efficiency. Adjusted Operating expense increased 27% to €71 million. Advertising and promotion expense increased 3% to €23 million. Indirect expense increased 43% to €49 million as the quarterly bonus accrual in the current period compared to the reversal of the year-to-date bonus accrual in the prior year period. Adjusted EBITDA decreased 8% to €79 million due to the aforementioned factors. Foreign exchange currency translation adversely affected adjusted EBITDA by €1 million. Adjusted Profit after tax increased 2% to €42 million reflecting interest rate savings and lower depreciation and amortization. Adjusted EPS increased 9% to €0.24, reflecting Adjusted Profit growth and a lower share count. First Nine Months of 2017 results compared to the First Nine Months of 2016 Revenue increased 0.4% to €1,448 million. Organic revenue growth of 3.3% was driven by 2.6% growth in volume/mix and 0.7% growth in price. Gross profit increased 1.0% to €439 million. Gross margin expanded 10 basis points to 30.3% as positive mix and improved pricing and promotional efficiencies were offset by currency driven inflation. Foreign exchange currency translation adversely impacted gross margin by 20 basis points. Adjusted Operating expense increased 7% to €225 million. Advertising and promotion expense increased 3% to €78 million. Indirect expense increased 10% to €147 million as the bonus accrual in the current period compared to the reversal of the year-to-date bonus accrual in the prior year period. Adjusted EBITDA decreased 6% to €247 million due to the aforementioned factors. Foreign exchange currency translation adversely affected adjusted EBITDA by €9 million. Adjusted Profit after tax decreased 1% to €130 million. Adjusted EPS was unchanged at €0.72 reflecting Adjusted Profit decline and a lower share count. 2017 Guidance The Company raises its 2017 Adjusted EBITDA outlook to a range of approximately €325 to €327 million versus the prior expectation of approximately €320 to €325 million. Full year guidance now assumes organic revenue growth of approximately 3% versus the prior expectation of growth at a low-single digit percentage rate. Share LinkedinFacebookTwitterE-mail