Nomad Foods Provides Updates on Full Year 2023 Results and Initiates 2024 Guidance
- Nomad Foods provides positive 2024 adjusted EPS guidance with expected growth of 9-12%.
- The company plans to report Q4 and full-year results on February 29, 2024.
- CEO Stéfan Descheemaeker is pleased with Q4 performance and anticipates strong growth in 2024.
- Revenues for 2023 are expected to meet previous guidance of mid-single digit organic growth.
- Adjusted EBITDA for the full year is projected to be above current consensus estimates.
- Nomad Foods initiates a quarterly dividend, reflecting confidence in future cash flows and growth.
- None.
Insights
Examining the adjusted EPS guidance provided by Nomad Foods Limited, there's a notable optimism in their financial outlook for 2024. A projected growth of 9-12% in adjusted EPS is a robust indicator, especially in the context of the food industry where margins are often tight due to high competition and fluctuating commodity prices. This forecast suggests that the company has effective cost control measures in place and potentially benefits from economies of scale or has a competitive advantage in pricing power.
The company's expectation to exceed its previous guidance on key financial metrics such as adjusted EPS, cash flow and EBITDA for the year 2023 implies a strong operational performance. Investors should note that exceeding consensus estimates is a positive signal, often leading to a favorable market reaction as it reflects a company's ability to outperform market expectations. However, stakeholders should also consider the broader economic environment, including inflationary pressures and consumer spending behavior, as these factors can significantly impact future performance.
From a market perspective, the initiation of a quarterly dividend is a significant development. It not only enhances shareholder value but also sends a message about the company's financial health and its confidence in consistent cash flow generation. Dividend initiation or increases are typically well-received by the market and can attract income-focused investors. Moreover, the company's reference to 'quality and resilience' suggests a strong brand and product portfolio that can withstand market volatility.
However, the company operates within the highly competitive food industry, where consumer preferences are rapidly evolving. The ability to maintain top-tier growth will likely depend on Nomad Foods' agility in product innovation and its response to trends such as healthy eating, sustainability and convenience. Continuous investment in these areas could be critical for long-term success and maintaining the growth trajectory indicated by the company's guidance.
The guidance provided by Nomad Foods Limited must be contextualized within the broader economic landscape. The food industry is somewhat defensive, meaning it's less sensitive to economic downturns as food is a basic necessity. However, discretionary spending and consumer confidence still play a role in the performance of food companies, particularly those offering premium or non-essential products.
Current global economic trends, such as potential recessionary environments or shifts in commodity prices, can affect input costs and consumer spending patterns. While the company's guidance is promising, it's important for stakeholders to monitor economic indicators that could influence Nomad Foods' ability to meet its targets. These include inflation rates, employment levels and GDP growth, as they can affect both the cost side (e.g., raw materials, labor) and the revenue side (e.g., consumer demand) of the business equation.
Initiate 2024 Adjusted EPS guidance of
Company to report fourth quarter and full year results on Thursday, February 29, 2024
FELTHAM,
Financial Update and Management Comments
Stéfan Descheemaeker, Nomad Foods' Chief Executive Officer, stated, "We are pleased with our continued momentum in the fourth quarter as we closed a difficult year and remain well-positioned to deliver another year of attractive growth in 2024. We expect to end 2023 with revenues in line with our previous guidance of mid-single digit organic growth, while full year Adjusted EPS, Adjusted Cash Flow, and Adjusted Cash Flow conversion are expected to be above our previous guidance of
"Our recent announcement of the initiation of a quarterly dividend further highlights the quality and resilience of our business and our confidence in our ability to generate significant cash flows and sustainable, long-term growth."
He continued, "I am proud of our uninterrupted track record of top-tier growth and even more excited about our accelerated growth outlook. As we look ahead to 2024, we expect our full year revenues to increase by
CAGNY Presentation Webcast
As previously announced, the Company is scheduled to present tomorrow at 4:00pm EST at the 2024 Consumer Analyst Group of
https://event.webcasts.com/starthere.jsp?ei=1654529&tp_key=a8d52daacb
Fourth Quarter Earnings Conference Call and Webcast
The Company expects to release its full results for the fiscal fourth quarter and full year ended December 31, 2023 on Thursday, February 29, 2024. The Company does not plan to release preliminary financial information on an ongoing basis.
The Company will host a conference call with members of the executive management team on Thursday, February 29, 2024, at 1:30 p.m. GMT (8:30 a.m. Eastern Standard Time). Investors interested in participating in the live call can dial +1-877-451-6152 from
Additionally, there will be a presentation to accompany the conference call and the call is being webcast. Both can be accessed at the Nomad Foods website at www.nomadfoods.com under Investor Relations. A replay of the conference call will be available on the Company website for two weeks following the event and can be accessed by listeners in
About Nomad Foods
Nomad Foods (NYSE: NOMD) is
Enquiries
Investor Relations Contact
Amit Sharma, Head of Investor Relations
amit.sharma@nomadfoods.com
Media Relations Contact
Jim Golden / Ed Hammond / Jack Kelleher
Collected Strategies
nomad-cs@collectedstrategies.com
Forward-Looking Statements
Certain statements in this announcement are forward-looking statements which are based on the Company's expectations, intentions and projections regarding its future performance, anticipated events or trends and other matters that are not historical facts, including the Company's: (i) expectations regarding the Company's 2023 financial performance and its full year 2024 guidance and expectations with respect to revenue growth, Adjusted EBITDA growth, Adjusted EPS and Adjusted free cash flow conversion; (ii) the Company's growth prospects and multiple avenues for continued value creation and (iii) expectations of a quarterly dividend. These statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements, including (i) the Company's ability to effectively mitigate factors that negatively impact its supply of raw materials, including the conflict in
Non-IFRS Financial Information
Nomad Foods is presenting preliminary Adjusted and Organic financial information, which is considered non-IFRS financial information, for the three and twelve months ended December 31, 2023.
EBITDA is profit or loss for the period before taxation, net financing costs, depreciation and amortization. Adjusted EBITDA is EBITDA adjusted to exclude, when they occur, the impacts of exited markets, acquisition purchase price adjustments, chart of account ("CoA") alignments and exceptional items such as restructuring charges, goodwill and intangible asset impairment charges and other unusual or non-recurring items. In addition, we exclude other adjustments such as the impact of share based payment expenses and related employer payroll taxes, and non-operating M&A related costs, because we do not believe they are indicative of our normal operating costs, can vary significantly in amount and frequency, and are unrelated to our underlying operating performance. The Company believes Adjusted EBITDA provides important comparability of underlying operating results, allowing investors and management to assess operating performance on a consistent basis.
Adjusted EBITDA should not be considered as an alternative to profit/(loss) for the period, determined in accordance with IFRS, as an indicator of the Company's operating performance.
Adjusted EPS is defined as diluted earnings per share excluding, when they occur, the impacts of exited markets, acquisition purchase price adjustments, chart of account ("CoA") alignments and exceptional items such as restructuring charges, goodwill and intangible asset impairment charges, unissued preferred share dividends, as well as certain other items considered unusual or non-recurring in nature. In addition, we exclude other adjustments such as the impact of share based payment expenses and related employer payroll taxes, and non-operating M&A related costs, because we do not believe they are indicative of our normal operating costs, can vary significantly in amount and frequency, and are unrelated to our underlying operating performance. The Company believes Adjusted EPS provides important comparability of underlying operating results, allowing investors and management to assess operating performance on a consistent basis.
Organic revenue for the three and twelve months ended December 31, 2023 presented in this press release is preliminary and reflects reported revenue adjusted for currency translation and non-comparable trading items such as expansion, acquisitions, disposals, closures, chart of account ("CoA") alignments, trading day impacts or any other event that artificially impact the comparability of our results.
Adjustments for currency translation are calculated by translating data of the current and comparative periods using a budget foreign exchange rate that is set once a year as part of the Company's internal annual forecast process.
Adjusted and Organic non-IFRS financial information should be read in conjunction with the unaudited financial statements of Nomad Foods included in this press release as well as the historical financial statements of the Company previously filed with the SEC.
Leverage is defined as total loans and borrowings outstanding less the sum of cash and cash equivalents and short term investments, divided by adjusted EBITDA for the trailing twelve month period.
Nomad Foods believe these preliminary non-IFRS financial measures provide an important additional measure with which to monitor and evaluate the Company's ongoing financial results, as well as to reflect its acquisitions. Nomad Foods' calculation of these financial measures may be different from the calculations used by other companies and comparability may therefore be limited. The preliminary Adjusted and Organic financial information presented herein is based upon certain assumptions that Nomad Foods believes to be reasonable and is presented for informational purposes only and is not necessarily indicative of any anticipated financial position or future results of operations that the Company will experience. You should not consider the Company's non-IFRS financial measures an alternative or substitute for the Company's reported results and are cautioned not to place undue reliance on these results and information as they may not be representative of our actual or future results as a Company.
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SOURCE Nomad Foods Limited
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