Woking, England-headquartered Nomad Foods, Europe’s leading marketer of branded retail frozen food products whose portfolio of household names includes Birds Eye, Findus, Iglo, has reported a revenue decrease of 0.8% to €747 million during the second quarter of 2025 ending on June 30. Organic revenue in comparison with the same period last year fell 1.1%, with a volume decline of 1.0%,
Adjusted gross profit in Q2 decreased 10.8% to €208 million. Adjusted gross margin decreased 310 basis points to 27.8% due primarily to supply chain inflation headwinds.
“This year is proving to be more challenging than expected,” stated CEO Stéfan Descheemaeker. “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.”
He added: “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 organic sales to return to growth in the second half of the year.”
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 has been achieved. The company’s ability to stabilize market share in the quarter demonstrates that its commercial plans are working. Furthermore, 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.”
First Half Results
Results for the first six months of 2025 compared to the first six months of 2024 were as follows:
• Revenue slipped 1.9% to €1,507 million. At the same time organic revenue fell by 2.4%, driven by a volume decline of 2.3%. and a decline in price/mix of 0.1%.
• Adjusted gross profit was down 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 fell 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 has lowered 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.
