While logging yet another quarter of lower sales, which fell 6.9% to €439.5 million during the three-month period that ended on September 30, Nomad Foods reported a profit of €3.6 million. Revenue during the past nine months amounted to €1,442.5 million, resulting in a €38.5 million profit after tax, which includes exceptional items and share-based payment charges of €113.1 million.
Adjusting for currency impacts and the exit from the Russian market, the like-for-like decline for the third quarter was 3.3%, marking an improvement on the rate of decline in the first half of 2016. The Feltham, England-headquartered company, which claims the leading market share for branded frozen food sales in Western Europe, sells Birds Eye, Iglo and Findus products in 17 countries.
As has been the case in the past few quarters, the decline in sales was driven by the group’s three largest markets – namely the UK, Italy and, to a lesser extent, Germany – although activity in each of these countries again showed reduced rates of slippage year-on-year compared to the prior quarter. A drop in sales was also reported in France, as retailers destocked Iglo products ahead of ordering the new Findus branded SKUs.
Commenting on the company’s performance, CEO Stéfan Descheemaeker remarked: “We have made further progress on implementing our strategy and are encouraged by the early results of our ‘must win battles.’ There is still much to do and we continue to remain focused on our key objectives for the year and beyond: firstly, to stabilize the top-line and secondly to deliver the predicted synergies.”
Noam Gottesman, the company’s co-chairman and founder, added: “We are pleased with our progress on all fronts. Results from our ‘must win battles’ strategy are promising, with positive feedback from both retailers and our consumers. Meanwhile, we also remain focused on our broader strategy, as we seek to build long-term value for all of our stakeholders.”
The value of Nomad Foods’ stock, which trades on the New York Stock Exchange, closed at exactly $10 a share on November 29. The highest price quoted during the past quarter was $12.79 on October 14, while the lowest price during the year was $6.49 on February 23.
Appointment of New Director
Meanwhile, the company announced that, effective November 30, its number of directors will be increased from 10 to 11, and that Simon White will join the board to fill the newly created seat.
Until 2014 White was chief operating officer of Man Group PLC, where he was also a member of the executive committee. Prior to GLG’s merger with Man in 2010, he served as chief operating officer of GLG Partners Inc. from its inception, and was also chief financial officer until mid-2008. From 1993 to 2000 he worked at Lehman Brothers in a number of different positions. Since 2014, White has been involved in leadership roles in a range of early stage businesses with a special focus on FinTech.
