Fish finger producer delivers strong trading results
Major fish finger producer, Nomad Foods Limited, has reported financial results for the three and nine month periods ended September 30, 2022. Key operating highlights for the frozen food giant and financial performance for the third quarter 2022, when compared to the third quarter 2021, include:
- Reported revenue increased 26.7% to €760 million
• Organic revenue increase of 7.2%
• Reported Profit for the period of €82 million
• Adjusted EBITDA increased 35.3% to €153 million
• Adjusted EPS increase 48.6% to €0.52
Stéfan Descheemaeker, Nomad Foods’ Chief Executive Officer, stated, “I am pleased to report that Nomad Foods performed well in the third quarter, delivering strong sales growth and Adjusted EPS of €0.52, up nearly 50% year-on-year. Our revenues grew by nearly 27% in the quarter, reflecting organic revenue growth of more than 7% as well as the contribution from our recent acquisition. We are also pleased to announce that we are extending our debt maturity profile through a refinancing of our existing USD debt with $830 million in term loans due in 2029. When finished, our debt portfolio will be fully covered through mid-2028 and 2029 at an attractive average interest cost, with roughly 75% of our debt effectively fixed until 2027. We are reiterating our full-year 2022 Adjusted EPS expectation range of €1.65 to €1.71 and we are confident in our ability to deliver our target of €2.30 Adjusted EPS for 2025.”
Noam Gottesman, Nomad Foods’ Co-Chairman and Founder, commented, “Nomad Foods reported another quarter of strong results boosted by our great brands, efficient supply chain and world-class people. Nomad has proven again to be a resilient business as disciplined procurement and supply chain management provided high quality products with improved service levels and strong margins. Furthermore, our debt refinancing represents another important step in extending our debt profile and controlling costs in a volatile macro environment. Although we see challenges, we also see great areas of opportunity, and we will continue to invest to capture those opportunities. We will maintain our focus on accelerating sustainable growth while compounding the value of our results for shareholders. We expect to keep this momentum into 2023 and beyond.”
Third Quarter of 2022 results compared to the Third Quarter of 2021
- Revenue increased 26.7% to €760 million. Organic revenue increase of 7.2% was comprised of a 3.4% decline in volume/mix offset by a 10.6% increase in price.
• Gross profit increased 31.9% to €221 million. Gross margin increased 110 basis points to 29.1%, driven by higher pricing offsetting higher raw material costs across the business.
• Adjusted operating expenses increased 26.6% to €91 million, driven by the inclusion of the Fortenova’s frozen food business acquisition.
• Adjusted EBITDA increased 35.3% to €153 million and Adjusted Profit for the period increased 42.6% to €90 million due to the aforementioned factors.
• Adjusted EPS increased 48.6% to €0.52. Reported EPS increased 62.1% to €0.47.
First Nine Months of 2022 results compared to the First Nine Months of 2021
- Revenue increased 15.1% to €2,190 million. Organic revenue decline of 0.4% was comprised of a 5.9% decline in volume/mix offset by a 5.5% increase in price.
• Adjusted Gross profit increased 9.9% to €623 million. Adjusted gross margin decreased 140 basis points to 28.4%, driven by higher raw material costs, partially offset by higher pricing.
• Adjusted operating expenses increased 13.9% to €277 million, driven primarily by the first-time inclusion of our Adriatic region acquisition.
• Adjusted EBITDA increased 10.1% to €411 million and Adjusted Profit for the period increased 7.9% to €236 million due to the aforementioned factors.
• Adjusted EPS increased 9.8% to €1.35, reflecting an increase in Adjusted Profit after tax. Reported EPS increased 43.5% to €1.22.