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Nomad Foods Posts Financial Results for Q3 and First Nine Months of 2022

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Feltham, England-headquartered Nomad Foods on November 9 reported strong sales results in the third quarter and during the nine-month periods that ended on September 30, 2022. The parent company of Birds Eye, Findus, iglo, Ledo and Frikom and other retail brands achieved Adjusted EPS of €0.52, up nearly 50% year-on-year.

“Our revenues grew by nearly 27% [to €760 million] in the quarter, reflecting organic revenue growth of more than 7% as well as the contribution from our recent acquisition,” said CEO Stéfan Descheemaeker.

Other key Q3 figures, compared to the same quarter in 2021, follow:

• Gross profit increased 31.9% to €221 million. Gross margin rose 110 basis points to 29.1%, due largely to higher pricing offsetting higher raw material costs across the business.
• Adjusted operating expenses increased 26.6% to €91 million, driven by the inclusion of the Fortenova’s frozen food business acquisition.
• Adjusted EBITDA rose 35.3% to €153 million and Adjusted Profit for the period increased 42.6% to €90 million.
Adjusted EPS increased 48.6% to €0.52. Reported EPS rose 62.1% to €0.47.

The company’s performance during the first three quarters of 2022 compared to the first nine months of 2021 was as follows:

• Revenue increased 15.1% to €2,190 million. The organic revenue dip of 0.4% was due to a 5.9% decline in volume/mix offset by a 5.5% increase in price.
• Adjusted gross profit increased 9.9% to €623 million. Adjusted gross margin fell by 140 basis points to 28.4%, driven by higher raw material costs, partially offset by higher pricing.
• Adjusted operating expenses rose 13.9% to €277 million, due primarily by the first-time inclusion of Nomad Foods’ Adriatic region acquisition.
• Adjusted EBITDA increased 10.1% to €411 million and Adjusted Profit for the period advanced 7.9% to €236 million.
Adjusted EPS increased 9.8% to €1.35, reflecting an increase in Adjusted Profit after tax. Reported EPS increased 43.5% to €1.22.

Dollar Debut Refinancing

Meanwhile, the company has announced the extension of its debt maturity profile through a refinancing of existing US dollar-denominated debt with $830 million in term loans due in 2029.
“When finished, our debt portfolio will be fully covered through mid-2028 and 2029 at an attractive average interest cost, with roughly 75% of our debt effectively fixed until 2027,” said Descheemaeker. “We are reiterating our full-year 2022 Adjusted EPS expectation range of €1.65 to €1.71 and we are confident in our ability to deliver our target of €2.30 Adjusted EPS for 2025.”