Birds Eye parent Nomad Foods has reported revenue, adjusted EBITDA and adjusted EPS growth for the fifth consecutive year in 2021 despite decline in organic revenue and adjusted gross profit.
The company’s reported revenue increased by 3.6%, to €2.6 million, while organic revenue declined by 2.1% following a 1.6% decline in volume/mix and 0.5% decline in price.
Adjusted EBITDA for the financial year increased 4%, to €487 million, and adjusted profit after tax increased 5% to €277 million.
Adjusted EPS increased 15% to €1.55, while reported EPS decreased 11% to €1.02.
Adjusted operating expenses decreased 7% to €338 million, reflecting a decline in both advertising and promotion and indirect expenses.
Adjusted gross profit dropped 1% to €753 million during the year, while adjusted gross margin declined 140 basis points to 28.9% due to inflation and mix from the acquisitions of Findus Switzerland and Fortenova Frozen.
'Consolidating Consumer Gains'
Stéfan Descheemaeker, Nomad Foods’ chief executive officer, said, “Following an exceptional year of growth in 2020, we focused this year on consolidating our consumer gains through product innovation and impactful promotion, while ensuring our supply chain was fit for purpose as we drove investments in capacity expansion and efficiency programmes.”
He added that the growth in revenue, adjusted EBITDA and adjusted EPS reflects “the resilience of our operating model, the strength of our brands and our focus on maximising value for our shareholders.”
Noam Gottesman, Nomad Foods’ co-chairman and founder, commented, “Our 2021 results mark a new record level of financial performance for our company. In addition to delivering adjusted EPS at the top-end of guidance, this year's notable achievements include a successful refinancing of our debt, the integration of Findus Switzerland, the acquisition of Fortenova's frozen food business for €615 million, as well as over $75 million of share repurchases during the fourth quarter.
“Having established a strong platform for growth over the last five years, we are confident our business is well-positioned to repeat this pattern of growth in 2022 and beyond."
Quarterly Performance
In the fourth quarter, reported revenue increased 7.0%, to €704 million, while adjusted gross profit decreased 10% to €186 million.
Adjusted gross margin for the quarter declined 140 basis points to 28.9%, again impacted by inflation and the acquisitions of Findus Switzerland and Fortenova Frozen.
Adjusted EBITDA decreased 5% year-on-year to €113 million, while adjusted profit after tax saw a 15% decline, to €58 million.
Outlook
In full-year 2022, Nomad Foods expects double-digit growth in adjusted EPS, ranging from €1.71 to €1.75.
The company has forecast reported revenue growth for the full year in high single-digit percentage and organic revenue growth at a low-single-digit percentage.
Noam Gottesman, Nomad Foods’ co-chairman and founder, commented, “Our 2021 results mark a new record level of financial performance for our company. In addition to delivering adjusted EPS at the top-end of guidance, this year's notable achievements include a successful refinancing of our debt, the integration of Findus Switzerland, the acquisition of Fortenova's frozen food business for €615 million, as well as over $75 million of share repurchases during the fourth quarter.
“Having established a strong platform for growth over the last five years, we are confident our business is well-positioned to repeat this pattern of growth in 2022 and beyond."
