Frozen food firm Nomad Foods saw revenue growth of 1.1% in the second quarter of its financial year, to €753 million, with volume growth of 1.6%.
The company reported a 2.2% decline in volume in the same period last year.
Adjusted EBITDA for the quarter increased 5.3%, to €139 million, while gross profit increased 10.8%, to €233 million.
Stéfan Descheemaeker, chief executive officer of Nomad Foods, stated, “I am pleased to report strong second-quarter results that demonstrate the growing momentum behind our business. [...]
“Our investments are bearing fruit for both us and our retail partners – we see accelerating momentum ahead as our investment posture remains robust, our innovation efforts build and the distribution expansion behind our growth platforms scales."
The company reiterated its guidance for the full financial year and expects organic revenue growth of 3%-4%, adjusted EBITDA growth of 4%-6%, and adjusted EPS in the range of €1.75-€1.80.
First-Half Performance
The company reported 1.1% year-on-year growth in revenue in the first half, to €1.5 billion, driven by a favourable price/mix of 0.9%.
Gross profit for the period increased 2.2% to €444 million, while gross margin increased 30 basis points to 28.9%.
The Birds Eye parent saw a 6.1% year-on-year decline in adjusted EBITDA, to €262 million, during this period.
The company attributed this to an increase in advertising and promotional investments, ongoing investments in capabilities development, and some inflationary headwinds.
Noam Gottesman, co-chair and founder of Nomad Foods, stated, “This year is proving to be pivotal for our business as we have shifted from protecting profitability during a once-in-a-generation inflation shock to driving our volume and mix-driven growth.
“We are benefiting from an improving European consumer backdrop and strong category fundamentals which, combined with prudent investments and execution from the team, sets us up for continuing success."
