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FISH FINGER MANUFACTURER REPORTS STRONG SECOND QUARTER

Fish finger manufacturer reports strong second quarter

Fish finger manufacturer reports strong second quarter

Fish finger manufacturer Nomad Foods Limited has reported financial results for the three and six month period ended June 30, 2024. Key operating highlights and financial performance for the second quarter 2024, when compared to the second quarter 2023, include:

  • Reported revenue increased 1.1% to €753 million
  • Organic revenue growth of 0.5%
  • Adjusted EBITDA increased 5.3% to €139 million
  • Adjusted EPS of €0.44

Nomad Foods is home to leading brands which includes Birds Eye, Findus and igloo, manufacturing, selling and distributing a range of branded frozen food products across 22 European markets.

Stéfan Descheemaeker, Nomad Foods’ Chief Executive Officer, stated, “I am pleased to report strong 2Q results that demonstrate the growing momentum behind our business. Volume inflected to growth behind accelerating gains in our must-win-battles and the successful build-out of our growth platforms. Growth from these high margin products combined with our productivity initiatives to drive healthy gross margin expansion which provided the funding to meaningfully increase our A&P spend. Our investments are bearing fruit for both us and our retail partners – we see accelerating momentum ahead as our investment posture remains robust, our innovation efforts build and the distribution expansion behind our growth platforms scales.”

He continued, “As a result, we are increasingly confident in our ability to achieve the profitable volume growth acceleration that underpins our second half outlook. We are maintaining our full year guidance to deliver revenue growth of 3%-4%, Adjusted EBITDA growth of 4%-6%, and Adjusted EPS of €1.75-€1.80.”

Noam Gottesman, Nomad Foods’ Co-Chairman and Founder, commented, “This year is proving to be pivotal for our business as we have shifted from protecting profitability during a once-in-a generation inflation shock to driving our volume and mix-driven growth. We are benefiting from an improving European consumer backdrop and strong category fundamentals which, combined with prudent investments and execution from the team, sets us up for continuing success. I am delighted to see these efforts already bearing fruit in the form of resumed volume growth this quarter and look forward to accelerating momentum through year-end and into 2025.”

Second Quarter of 2024 results compared to the Second Quarter of 2023
• Revenue increased 1.1% to €753 million. Organic revenue growth of 0.5% was driven by favorable volume 1.6%, a marked improvement from a decline of 2.2% in 1Q24. This was offset by price/mix decline of 1.1%.
• Gross profit increased 10.8% to €233 million. Gross margin increased 270 basis points to 30.9% due to a positive product mix performance as we invested in our core most profitable must win battles, leveraged revenue growth management capabilities and Supply Chain productivity.
• Adjusted operating expenses increased 15.4% to €117 million due to the planned increase in A&P investments, ongoing investments in capabilities development, and some inflationary headwinds.
• Adjusted EBITDA increased 5.3% to €139 million due to the aforementioned factors.
• Adjusted Profit for the period increased 5% to €72 million, and as a result, Adjusted EPS increased by €0.04 to €0.44. Reported EPS increased €0.15 to €0.43.

First Six Months of 2024 results compared to the First Six Months of 2023
• Revenue increased 1.1% to €1,537 million. Organic revenue growth of 0.4% was driven by favorable price/mix of 0.9%. Volume decline moderated to 0.5%.
• Gross profit increased 2.2% to €444 million. Gross margin increased 30 basis points to 28.9%, due to a positive product mix performance as we invested behind our core most profitable must win battles.
• Adjusted operating expenses increased 13.5% to €228 million due to the planned increase in A&P investments, ongoing investments in capabilities development, and some inflationary headwinds.
• Adjusted EBITDA decreased 6.1% to €262 million due to the aforementioned factors.
• Adjusted Profit for the period decreased 11% to €132 million, and as a result, Adjusted EPS decreased by €0.05 to €0.81. Reported EPS increased €0.13 to €0.65.

2024 Guidance
For the full year 2024, the Company continues to expect organic revenue growth of 3%-4%, driven by positive volume/mix, Adjusted EBITDA growth of 4%-6%, and Adjusted EPS of €1.75-€1.80, implying growth of 9-12%. Based on USD/EUR exchange rate as of August 1st, this translates into 2024 Adjusted EPS of $1.89-$1.94. The Company expects full year cash flow conversion in the range of 90% to 95%.

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