Nomad Foods has reported a 7% increase in reported revenue in the third quarter of its financial year, with chief executive Stéfan Descheemaeker noting that the company is planning further price increases to offset cost price inflation.
The group reported revenue of €760 million in the quarter, with adjusted EBITDA rising 3% to €153 million. Organic revenue was up 2% in the period.
'Solid Underlying Performance'
“I am pleased to report that Nomad Foods performed very well in the third quarter as our business delivered pricing recovery and a solid underlying performance," Descheemaeker said. "We successfully executed double-digit price increases in the quarter to offset input cost pressures, and we fully expect to deliver further price increases in the fourth quarter to re-build margins in preparation for next year."
The group has reiterated its full-year adjusted EPS expectations of between €1.65 to €1.71, adding that it 'remains confident' in its ability to deliver a €2.30 adjusted EPS target for 2025.
"As we recover our margins to longer-term levels and focus on maximising our input cost coverage, we are positioning Nomad for sustainable growth into 2023 and beyond," Descheemaeker added.
Nomad Foods Portfolio
Nomad Foods' portfolio includes a number of leading frozen food brands, including Birds Eye, Findus, iglo, Ledo and Frikom.
It said that it raised prices by 10.6% in the third quarter, offsetting a 3.4% decline in volume/mix in the period.
"We are focused on prudent investments in the business, especially supply chain improvements, to successfully manage through this historically difficult macro environment," said Noam Gottesman, Nomad Foods’ co-chairman and founder. "We expect to emerge stronger and positioned for sustainable growth."
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