Execution of the commercial flywheel is
driving strong market share and volume growth
2025 is expected to be the 10th
consecutive year of revenue and Adjusted EBITDA growth as Nomad
Foods celebrates its 10th anniversary as a public
company
WOKING, England, Jan. 14,
2025 /PRNewswire/ -- Nomad Foods Limited (NYSE: NOMD)
today provided an update on its in-market performance and detailed
its strategy and tactics to sustain momentum. The Company continued
to gain market share through the fourth quarter with accelerating
volume growth as investments behind its Commercial Flywheel
delivered results. Nomad Foods expects to sustain positive momentum
in 2025.
For the full year 2025, Nomad Foods expects organic revenue
growth of 1%-3%, Adjusted EBITDA growth of 2%-4%, despite plans to
meaningfully increase investment in our products and brands again
in 2025, and Adjusted EPS of €1.81-€1.85. The Company also expects
full year adjusted free cash flow conversion of 90% or greater.
Management remains confident in its ability to achieve its
previously issued full year 2024 guidance and will provide detailed
results when it reports fourth quarter earnings.
Stéfan Descheemaeker, Chief Executive Officer, stated, "I am
pleased with the strong momentum we have built across our portfolio
as we enter 2025, which will mark our 10th anniversary as a public
company. Our strategy is working as evidenced by the positive
market share inflection we achieved in the second half of 2024 and
the strong volume growth we expect to deliver in the fourth quarter
of 2024. The increased investments we have made behind our
advertising, innovation, renovation and merchandising are
delivering strong returns and we will continue reinvesting to fuel
the momentum in 2025."
He continued, "We enter 2025 with a portfolio that is well
positioned for evolving consumer trends with more than two-thirds
of our revenue expected to be generated from great tasting and
nutritious seafood, poultry and vegetable products. Furthermore, we
benefit from a Frozen category that is seeing sustained volume
growth with a long runway ahead of it. We expect to leverage these
tailwinds to deliver another year of top-tier Food industry growth
as we once again increase our advertising, innovation and
renovation rates to fuel growth for us and our retail partners. We
expect to fund this growth by focusing our investment on our higher
margin Must Win Battles and Growth Platforms while executing on our
revenue growth management and productivity programs to deliver
robust Adjusted EBITDA and Adjusted free cash flow. We are excited
to celebrate our 10-year anniversary as a public company by
delivering our 10th consecutive year of revenue and Adjusted EBITDA
growth!"
Stéfan Descheemaeker, Chief Executive Officer, and Ruben Baldew,
Chief Financial Officer, are scheduled to present at the 27th
Annual ICR Conference in Orlando,
FL, today, Tuesday, January 14,
2025, at 10:30 AM Eastern
time. A live audio webcast of the presentation will be made
available on Nomad Foods' website at www.nomadfoods.com. An archive
of the webcast will be available following the event through the
same website.
Enquiries
Investor Relations
Contact
Jason English
investorrelations@nomadfoods.com
Media Contact
Elaine
McCrimmon, Group Corporate Affairs Director
elaine.mccrimmon@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 forecast
financial information, which is considered non-IFRS financial
information, for the fiscal years 2024 and 2025.
Adjusted financial information 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, 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. 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.
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 before 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, but after 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 percentage of
Adjusted Profit for the period.
Adjusted and Organic non-IFRS financial information should be
read in conjunction with 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.
The Company is unable to reconcile, without unreasonable
efforts, Organic Growth, Adjusted EBITDA and Adjusted EPS guidance
to the most directly comparable IFRS measure.
Forward-Looking Statements and Disclaimers
Certain statements in this press release are forward-looking
statements which are based on the Company's expectations,
intentions and projections regarding its future performance,
anticipated events or trends and other matters that are not
historical facts, including the Company's expectations regarding
(i) its future operating and financial performance, including its
guidance with respect to organic revenue growth, Adjusted EBITDA
growth, adjusted free cash flow conversion, Adjusted EPS, and
Adjusted EPS growth for 2025; (ii) its fourth quarter and year end
results, including the timing of the release of such results; (iii)
its volume growth in 2024; (iv) its growth within the industry in
2025; (v) its ability to deliver its 10th consecutive year of
revenue and Adjusted EBITDA growth; (vi) 2025 revenue generation;
(vii) the benefits of the Frozen category; and (viii) its
investments, advertising, innovation and renovation efforts in
2025.
These statements are not guarantees of future performance and
are subject to known and unknown risks, uncertainties and other
factors that could cause actual results to differ materially from
those expressed or implied by such forward-looking statements,
including: (i) the Company's ability to effectively mitigate
factors that negatively impact its supply of raw materials,
including the conflict in Ukraine
and climate-related factors beyond the Company's control; (ii) the
Company's ability to successfully mitigate inflationary changes in
the market; (iii) the Company's ability to successfully identify
suitable acquisition targets and adequately evaluate the potential
performance of such acquisition targets; (iv) the Company's ability
to successfully implement its strategies (including its M&A
strategy) and strategic initiatives and to recognize the
anticipated benefits of such strategic initiatives; (v) innovations
introduced to the markets and the Company's ability to accurately
forecast the brands' performance; (vi) the Company's ability to
effectively compete in its markets; (vii) changes in consumer
preferences, such as meat substitutes, and the Company's failure to
anticipate and respond to such changes or to successfully develop
and renovate products; (viii) the effects of reputational damage
from unsafe or poor quality food products; (ix) the risk that
securities markets will react negatively to actions by the Company;
(x) the adequacy of the Company's cash resources to achieve its
anticipated growth agenda; (xi) increases in operating costs,
including labor costs, and the Company's ability to manage its cost
structure; (xii) fluctuations in the availability of food
ingredients and packaging materials that the Company uses in its
products; (xiii) the Company's ability to protect its brand names
and trademarks; (xiv) the Company's ability to prevent, or
remediate, any future cybersecurity incidents; (xv) loss of the
Company's financial arrangements with respect to receivables
factoring; (xvi) the loss of any of the Company's major customers
or a decrease in demand for its products; (xvii) economic
conditions that may affect the Company's future performance
including exchange rate fluctuations; (xviii) the Company's ability
to successfully interpret and respond to key industry trends and to
realize the expected benefits of its responsive actions; (xix) the
Company's failure to comply with, and liabilities related to,
environmental, health and safety laws and regulations; (xx) changes
in applicable laws or regulations; (xxi) the Company's ability to
remediate any material weaknesses in its internal control over
financial reporting; and (xxii) the other risks and uncertainties
disclosed in the Company's public filings and any other public
disclosures by the Company. Given these risks and uncertainties,
prospective investors are cautioned not to place undue reliance on
forward-looking statements. Forward-looking statements speak only
as of the date of such statements and, except as required by
applicable law, the Company does not undertake any obligation to
update or revise publicly any forward-looking statements, whether
as a result of new information, future events or otherwise.
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SOURCE Nomad Foods Limited