Nomad Foods’ sales rose 4% to €599 million during the third quarter of 2021, which ended on September 30. The Feltham, England-headquartered frozen food company also reported on November 4 that organic revenue declined by 1.4% during the period, compared to Q3 2020 sales, while profits amounted to €52 million and adjusted EBITA rose 4% to €I13 million.
For the first nine months of the year, sales increased 2.4% to €1,903 million. A reduction in organic revenue of 1.3% was attributed to a 1.1% decline in volume/mix and 0.2% slippage in price. Adjusted gross profit rose 2.0% to €566 million, while adjusted gross margin decreased 10 basis points to 29.8% driven by favorable product mix in the base business offset by the inclusion of the Findus Switzerland acquisition whose gross margins were below that of the base business. Adjusted operating expenses during the first three quarters decreased 6% to €243 million.
Nomad Foods CEO Stéfan Descheemaeker stated that record third quarter results “demonstrate the resilience of our business model in the context of dynamic macro cross currents, notably the normalization of demand trends alongside industry-wide inflation, supply chain and logistics challenges.”
Noam Gottesman, the company’s co-chairman and founder, commented: “Our growth algorithm is based on strong base business fundamentals augmented with strategic acquisitions. We are pleased to see both elements of our strategy performing well. Our market share continues to trend in a positive trajectory, and we are investing in our future while maintaining strong levels of profitability.”
He added: “Our acquisition strategy is also yielding strong results. Findus Switzerland is performing well since being integrated earlier this year, and we are encouraged by the recent performance of Fortenova’s frozen food business which is expected to be a meaningful growth driver in the years to come. Our brands are in great health. We have a strong balance sheet and we are actively pursuing opportunities to grow our portfolio.”