Frozen food firm Nomad Foods has reported an 8.6% year-on-year increase in organic revenue, to €745 million, in the second quarter of its financial year.
This growth comprised of a 9.4% decline in volume/mix offset by a 18.0% increase in price, the company noted.
Describing the performance as 'strong', co-chair and founder of Nomad Foods, Noam Gottesman added that this growth was achieved while protecting the company's gross margin through pricing and cost discipline.
The company repurchased nearly €53 million in shares during quarter as part of its capital allocation strategy.
Quarterly Performance
Adjusted EBITDA for the quarter increased by 4.5% year-on-year to €132 million, while reported profit amounted to €49 million.
The company also completed preparations and planning for its advertising and promotional (A&P) investment plan in the next quarter.
The Birds Eye maker added that it expects to see visible improvement in volume and market share performance in the second half of the year.
For full-year 2023, the company has raised its adjusted EPS guidance to €1.54 - €1.57 from €1.52 - €1.55.
Gottesman stated, "Nomad's leading brands, great people, and world-class supply chain continue to drive great results, and the operational plans we built for this year are coming to fruition, which gives us confidence to revise our guidance."
First-Half Highlights
Nomad Foods saw organic revenue growth of 8.3% in the first half, comprised of an 8.5% decline in volume/mix offset by a 16.8% increase in price.
Gross profit increased 8.2% year-on-year, to €434 million, while gross margin increased 50 basis points to 28.6%
Adjusted EBITDA increased 7.9%, to €279 million, and adjusted profit increased 2.5%, to €149 million.
Gottesman added, "As we look ahead to the balance of the year, we are excited about the renewed investment in A&P to drive long-term growth and recapture market momentum.
"Frozen food remains an excellent value for all consumers, and we see plenty of opportunities ahead. We are investing in sustainable long-term growth and remain focused on driving value for our shareholders."
