Frozen food firm Nomad Foods has reported growth in revenue and market share in the third quarter of its financial year despite headwinds due to the implementation of the ERP system.
Organic revenue increased by 0.3% during the quarter, driven by favourable volume growth of 0.7%.
The Birds Eye parent was impacted by an approximately 2.5% temporary headwind related to ERP disruptions in certain markets in the quarter.
Adjusted EBITDA increased 19.0% year on year, to €166 million, while adjusted operating expenses increased 6.8%, to €107 million.
Stéfan Descheemaeker, chief executive officer of Nomad Foods, stated, “The European Frozen category remains healthy, and our market share returned to volume and value growth this quarter as innovation, marketing and merchandising investments yield positive results."
Nine-Month Performance
Nomad Foods saw organic revenue growth of 0.3% in the first nine months of 2024, driven by a favourable price/mix of 0.4%.
Adjusted EBITDA increased 2.3% year on year, to €428 million, while gross profit increased 6.3% to €692 million.
Adjusted operating expenses increased 11.2%, to €335 million, driven by the planned increase in A&P investments, ongoing investments in capabilities development, and some inflationary headwinds.
Co-chair and founder, Noam Gottesman, commented, “The new commercial flywheel and innovation framework that we adopted last year is bearing fruit and validated by our return to market share growth, notwithstanding the curtailed support levels due to ERP implementation in the period.
“The innovation and marketing plans for the remainder of this year and next are exciting, and I am confident that the improved fundamentals we are currently experiencing will continue."
Outlook
The frozen food maker has revised its guidance for organic revenue growth to 1%-2%, down from its previous guidance of 3%-4%.
The company now expects adjusted EBITDA to grow in a 3%-5% range compared to its previous range of 4%-6%.
Descheemaeker explained, “We have also modestly lowered our full-year adjusted EBITDA growth and Adjusted EPS guidance given the lower sales outlook alongside our choice to continue to invest in the business.
“Our volume growth and market share recovery are accelerating in the fourth quarter, and we have chosen to prioritise fuelling the momentum."
Recently, the company welcomed the House of Lords' food, diet and obesity committee's report urging the UK government to implement a comprehensive, integrated, and long-term strategy to overhaul the country's food system.
