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Company reiterates 2020 Adjusted EBITDA guidance; raises 2020 Adjusted EPS guidance to reflect tender offer accretion

Nomad Foods Limited (NYSE: NOMD), today reported financial results for the three and nine month periods ended September 30, 2020.  Key operating highlights and financial performance for the third quarter of 2020, when compared to the third quarter 2019, include:

• Reported revenue increased 6.7% to €576 million
• Organic revenue growth of 5.4%
• Reported Profit for the period of €56 million
• Adjusted EBITDA increased 13% to €109 million
• Adjusted EPS increased 20% to €0.30

Management Comments
Stéfan Descheemaeker, Nomad Foods’ Chief Executive Officer, stated, “Consumer demand remained elevated during the third quarter, and our performance continues to be led by our branded retail business. Frozen food is one of the fastest growing categories in Europe which is a testament to the resilience of the category even as offices, schools and restaurants gradually reopen. As the duration of this pandemic extends into its eight month, consumers are recognizing the benefits of our portfolio, forming new habits and repurchasing with greater frequency. We remain agile and prepared for the possibility of another demand spike as the number of new COVID-19 cases rises across Europe and local governments introduce new restrictions. While navigating the COVID-19 pandemic is a top near-term priority, we are equally focused on ensuring sustained growth beyond 2020. We look forward to outlining these initiatives at our Investor Day to be held virtually next week.”

Noam Gottesman, Nomad Foods’ Co-Chairman and Founder, commented, “Our business continues to perform well throughout the challenges of the COVID-19 pandemic as consumers recognize the value of frozen food and our brands in particular. Our financial results, including strong revenue and Adjusted EPS growth, strengthen our foundation for next year and years to come. Furthermore, year-to-date we have returned nearly $600 million of capital to shareholders – nearly $500 million through a successful tender offer in the third quarter and the balance through programmatic purchases. In doing so, we are optimizing our balance sheet while preserving financial flexibility to pursue our M&A strategy. We enter the fourth quarter with strong momentum, and we remain excited by Nomad’s near and long-term growth prospects.”

Third Quarter of 2020 results compared to the Third Quarter of 2019

• Revenue increased 6.7% to €576 million. Organic revenue growth of 5.4% was comprised of 4.2% growth in volume/mix and 1.2% increase in price.
• Gross profit increased 10% to €175 million. Gross margin increased 90 basis points to 30.4% as pricing, favorable mix and fixed cost leverage offset cost of goods inflation.
• Adjusted operating expenses increased 4% to €83 million as growth in Indirect expenses was partially offset by a modest decline in Advertising & Promotion.
• Adjusted EBITDA increased 13% to €109 million and Adjusted Profit after tax increased 20% to €59 million due to the aforementioned factors.
• Adjusted EPS increased 20% to €0.30, which includes the impact of a lower share count resulting from the repurchase of ordinary shares in the tender offer and otherwise during 2020. Reported EPS increased 45% to €0.29.

First Nine Months of 2020 results compared to the First Nine Months of 2019

 Revenue increased 9.6% to €1,858 million. Organic revenue growth of 8.4% was comprised of 6.7% growth in volume/mix and 1.7% increase in price.
• Gross profit increased 9% to €555 million. Gross margin declined 20 basis points to 29.9% as pricing, promotional efficiencies and mix were more than offset by cost of goods inflation.
• Adjusted operating expenses increased 6% to €260 million as double digit growth in Indirects was partially offset by a decline in Advertising & Promotion.
• Adjusted EBITDA increased 10% to €347 million and Adjusted Profit after tax increased 13% to €195 million due to the aforementioned factors.
• Adjusted EPS increased 8% to €0.98 and Reported EPS increased 47% to €0.84.

2020 Guidance
The Company is reiterating its 2020 Adjusted EBITDA guidance which is expected to be in excess of €460 million.  Adjusted EPS is now expected to be in excess of €1.31 EPS, reflecting a lower share count assumption upon the completion of the tender offer in September 2020. Full year guidance continues to assume organic revenue growth at a high-single digit percentage range.

Conference Call and Webcast
The Company will host a conference call with members of the executive management team to discuss these results today, Thursday, November 5, 2020 at 1:30 p.m. GMT (8:30 a.m. Eastern Standard Time). Investors interested in participating in the live call can dial +1-855-327-6837 from North America. International callers can dial +1-631-891-4304.

In addition, the call will be broadcast live over the Internet hosted at the “Investor Relations” section of the Company’s website at The webcast will be archived for 30 days. 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 10011433.

Nomad Foods Contacts
Investor Relations Contacts
Taposh Bari, CFA
Nomad Foods Limited

John Mills
ICR, Partner

Media Contact
Felipe Ucros
Gladstone Place Partners

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