Frozen food firm Nomad Foods has reported year-on-year revenue growth of 4.3% to €2.3 billion in the first nine months of its financial year ended 30 September 2023.
The Birds Eye maker reported organic revenue growth of 6.0%, comprising a 10.6% decline in volume/mix offset by a 16.6% increase in price.
Gross profit for the period increased by 4.6% to €651 million, while gross margin increased 10 basis points to 28.5%.
Nomad Foods added that it saw successful recovery of higher input costs through pricing in this period.
Adjusted EBITDA increased 1.7% to €418 million, while adjusted profit for the period decreased 5.6%.
Third-Quarter Performance
In the third quarter, the frozen food firm saw revenue growth of 0.5% year-on-year to €764 million.
On an organic basis, it registered growth of 1.6% as volume/mix declined by 11.2% and prices increased by 12.8%.
Gross profit during the quarter decreased by 2.0% to €217 million, while gross margin declined 70 basis points to 28.4%, due to an unfavourable comparison in the timing of pricing delivery in the prior year.
Adjusted EBITDA witnessed an 8.8% decline to €140 million, while adjusted profit for the period decreased 18.7% to €73 million due to the impact of the refinancing in November 2022.
Stéfan Descheemaeker, chief executive of Nomad Foods stated, "In the third quarter, we maintained our organic sales momentum from the first half of the year.
"Additionally, during September we kicked off our stepped-up A&P investment plan with a new and dynamic media campaign augmented by a comprehensive in-store promotional programme, positioning us for a return to sustainable, long-term volume and market share growth."
Outlook
The company raised its adjusted EPS guidance to €1.57 to €1.60 from €1.54 to €1.57 for the full-year 2023.
It retained its full-year guidance of mid-single-digit organic revenue growth and adjusted cash flow conversion in the range of 90% to 95%
The company has also approved a new share repurchase programme of up to $500 million. It will expire in 2026.
This programme will replace the previous authorisation from August 2021 to the end of 2023.
Noam Gottesman, co-chairman and founder of Nomad Foods, commented, "Our financial, commercial, and supply chain strategies are all delivering results consistent with our expectations, which contributes to this success.
"We repurchased €65.8 million in shares this quarter and continue to believe our shares represent a significant value creation opportunity."
