UK-based frozen foods company Nomad Foods has reported 6.7% year-on-year growth in revenue to €576 million, driven by the performance of its branded retail business.
Organic revenue for the period grew by 5.4%, while reported profit amounted to €56 million.
Adjusted EBITDA increased 13% year-on-year to €109 million, while adjusted EPS increased 20% to €0.30.
Co-chairman and founder of Nomad Foods, Noam Gottesman commented, “Our business continues to perform well throughout the challenges of the COVID-19 pandemic as consumers recognise the value of frozen food and our brands in particular.
“Our financial results, including strong revenue and adjusted EPS growth, strengthen our foundation for next year and the years to come.”
Year-To-Date Performance
The company, which owns brands including Birds Eye and Goodfella’s, saw its year-to-date revenue increase by 9.6%, to €1.86 billion, compared to the first nine months of 2019.
Organic revenue grew by 8.4% year-on-year, comprised of 6.7% growth in volume/mix and a 1.7% increase in price.
The adjusted EBITDA increased by 10% to €347 million, while adjusted EPS increased 8% to €0.98.
Gottesman added, “[On a] year-to-date [basis], we have returned nearly $600 million (€508.4 million) of capital to shareholders – nearly $500 million (€423.67 million) – through a successful tender offer in the third quarter and the balance through programmatic purchases.
“In doing so, we are optimising our balance sheet while preserving financial flexibility to pursue our M&A strategy. We enter the fourth quarter with strong momentum, and we remain excited by Nomad’s near and long-term growth prospects.”
Acquisition
Elsewhere, the company announced that it has agreed to acquire Findus Switzerland from Froneri International Ltd. and certain intellectual property from an affiliate of Nestlé S.A. for an aggregate consideration of approximately €110 million on a debt-free, cash-free basis.
The acquisition will see Nomad Foods extend its geographic reach into Switzerland.
The deal, expected to close at the beginning of 2021, will unify Nomad Foods’ ownership of the iconic frozen food brand across Europe.
'Long-Term Value Creation'
Commenting on the transaction, CEO of Nomad Foods, Stéfan Descheemaeker, said, “We are thrilled to announce the acquisition of Findus Switzerland, a brand and market which closely complement our existing portfolio.
“By unifying the Findus brand under Nomad Foods’ ownership and extending our geographic reach into Switzerland, we believe we have multiple levers for long-term value creation. We look forward to welcoming the Findus Switzerland team into our organisation.”
Findus is currently available in Italy, France, Spain, Sweden, Norway, Finland, and Denmark.
It is a leading frozen food brand in Switzerland, offering a portfolio of value-added products across categories including fish, vegetables, and ready meals.
© 2020 European Supermarket Magazine – your source for the latest retail news. Article by Dayeeta Das. Click subscribe to sign up to ESM: European Supermarket Magazine.
