Nomad Foods Reports Second Quarter 2024 Financial Results
Nomad Foods (NYSE: NOMD) reported its Q2 2024 financial results, highlighting a 1.1% revenue increase to €753 million and an adjusted EPS of €0.44. Organic revenue grew by 0.5%, driven by a 1.6% increase in volume, offset by a 1.1% price/mix decline. Adjusted EBITDA rose by 5.3% to €139 million. For the first six months of 2024, revenue increased by 1.1% to €1,537 million, with a 0.4% organic growth. However, adjusted EBITDA decreased by 6.1% to €262 million. The company reiterates its 2024 guidance of 3%-4% revenue growth, 4%-6% adjusted EBITDA growth, and adjusted EPS of €1.75-€1.80.
CEO Stéfan Descheemaeker expressed confidence in achieving profitable volume growth in H2 2024, driven by high-margin products and productivity initiatives. Co-Founder Noam Gottesman noted the shift from protecting profitability to driving growth amid improving European consumer backdrop. Key financial metrics include a 10.8% increase in gross profit to €233 million and an adjusted operating expense rise of 15.4% due to increased investments.
Nomad Foods (NYSE: NOMD) ha riportato i risultati finanziari del secondo trimestre 2024, evidenziando un aumento dei ricavi dell'1,1% a 753 milioni di euro e un utili per azione corretto (EPS) di 0,44€. I ricavi organici sono cresciuti dello 0,5%, sostenuti da un incremento del volume dell'1,6%, compensato da una diminuzione del prezzo/mix dell'1,1%. L'EBITDA corretto è aumentato del 5,3% a 139 milioni di euro. Per i primi sei mesi del 2024, i ricavi sono aumentati dell'1,1% a 1.537 milioni di euro, con una crescita organica dello 0,4%. Tuttavia, l'EBITDA corretto è diminuito del 6,1% a 262 milioni di euro. La società ribadisce le sue previsioni per il 2024 di una crescita dei ricavi del 3%-4%, una crescita dell'EBITDA corretto del 4%-6% e un EPS corretto di €1,75-€1,80.
Il CEO Stéfan Descheemaeker ha espresso fiducia nel raggiungimento di una crescita del volume redditizia nel secondo semestre del 2024, sostenuta da prodotti ad alto margine e iniziative di produttività. Il co-fondatore Noam Gottesman ha notato il passaggio dalla protezione della redditività alla promozione della crescita in un contesto di miglioramento dei consumatori europei. I principali indicatori finanziari includono un aumento del 10,8% del profitto lordo a 233 milioni di euro e un aumento delle spese operative corrette del 15,4% a causa degli investimenti maggiori.
Nomad Foods (NYSE: NOMD) reportó sus resultados financieros del segundo trimestre de 2024, destacando un aumento del 1,1% en los ingresos hasta 753 millones de euros y un EPS ajustado de 0,44€. Los ingresos orgánicos crecieron un 0,5%, impulsados por un aumento del 1,6% en el volumen, compensado por una disminución del 1,1% en precios/mezcla. El EBITDA ajustado aumentó un 5,3% hasta 139 millones de euros. En los primeros seis meses de 2024, los ingresos aumentaron un 1,1% hasta 1.537 millones de euros, con un crecimiento orgánico del 0,4%. Sin embargo, el EBITDA ajustado disminuyó un 6,1% hasta 262 millones de euros. La compañía reitera su guía para 2024 de crecimiento de ingresos del 3% al 4%, crecimiento del EBITDA ajustado del 4% al 6% y un EPS ajustado de 1,75€-1,80€.
El CEO Stéfan Descheemaeker expresó su confianza en lograr un crecimiento rentable del volumen en la segunda mitad de 2024, impulsado por productos de alto margen e iniciativas de productividad. El cofundador Noam Gottesman destacó el cambio de la protección de la rentabilidad a la promoción del crecimiento en un contexto de mejora del consumidor europeo. Las métricas financieras clave incluyen un aumento del 10,8% en el beneficio bruto, alcanzando 233 millones de euros, y un incremento del 15,4% en los gastos operativos ajustados debido al aumento de las inversiones.
노마드 푸드(Nomad Foods) (NYSE: NOMD)가 2024년 2분기 재무 결과를 발표하면서 매출 1.1% 증가를 7억 5,300만 유로로 보고하고 조정 주당 순이익(EPS)이 0.44유로로 나타났습니다. 유기적 매출은 0.5% 성장하였으며, 이는 1.6%의 물량 증가에 의해 주도되었고, 1.1%의 가격/구성 감소에 의해 상쇄되었습니다. 조정 EBITDA는 5.3% 증가하여 1억 3,900만 유로에 달했습니다. 2024년 상반기 6개월 동안 매출은 1.1% 증가하여 15억 3,700만 유로에 이르렀고, 유기적 성장은 0.4%였습니다. 그러나 조정 EBITDA는 6.1% 감소하여 2억 6,200만 유로로 집계되었습니다. 회사는 3%-4%의 매출 성장, 4%-6%의 조정 EBITDA 성장, 그리고 조정된 EPS가 1.75유로-1.80유로가 될 것이라는 2024년 가이던스를 반복했습니다.
CEO 스테판 데셰마커(Stéfan Descheemaeker)는 고수익성 제품과 생산성 향상 이니셔티브에 의해 2024년 하반기 수익성 있는 물량 성장을 달성할 것이라는 자신감을 표명했습니다. 공동 창립자인 노암 고트스만(Noam Gottesman)은 유럽 소비자 환경이 개선됨에 따라 수익성 보호에서 성장 주도로의 전환을 강조했습니다. 주요 재무 지표에는 총 이익이 10.8% 증가하여 2억 3,300만 유로에 이르고, 증가된 투자로 인해 조정 운영 비용이 15.4% 상승한 것이 포함됩니다.
Nomad Foods (NYSE: NOMD) a annoncé ses résultats financiers du deuxième trimestre 2024, soulignant une augmentation des revenus de 1,1% à 753 millions d'euros et un bénéfice par action ajusté (EPS) de 0,44 €. Les revenus organiques ont augmenté de 0,5 %, soutenus par une hausse de 1,6 % des volumes, compensée par une diminution de 1,1 % des prix/du mix. L'EBITDA ajusté a augmenté de 5,3 % pour atteindre 139 millions d'euros. Pour les six premiers mois de 2024, les revenus ont augmenté de 1,1 % pour atteindre 1,537 million d'euros, avec une croissance organique de 0,4 %. Cependant, l'EBITDA ajusté a diminué de 6,1 % pour atteindre 262 millions d'euros. L'entreprise réaffirme ses prévisions pour 2024 de croissance des revenus de 3 % à 4 %, croissance de l'EBITDA ajusté de 4 % à 6 % et un EPS ajusté de 1,75 € à 1,80 €.
Le PDG Stéfan Descheemaeker a exprimé sa confiance quant à la réalisation d'une croissance rentable du volume au second semestre 2024, grâce à des produits à forte marge et des initiatives de productivité. Le cofondateur Noam Gottesman a noté le passage de la protection de la rentabilité à la recherche de la croissance dans un contexte de consommation européenne en amélioration. Les principaux indicateurs financiers incluent une augmentation de 10,8 % du bénéfice brut à 233 millions d'euros et une hausse des dépenses opérationnelles ajustées de 15,4 % en raison d'une augmentation des investissements.
Nomad Foods (NYSE: NOMD) hat seine finanziellen Ergebnisse für das zweite Quartal 2024 veröffentlicht, wobei ein Umsatzanstieg von 1,1% auf 753 Millionen Euro und ein bereinigter Gewinn je Aktie (EPS) von 0,44 € hervorgehoben wurden. Der organische Umsatz wuchs um 0,5 %, angetrieben von einem Volumenanstieg von 1,6 %, der durch einen Rückgang der Preise/Mix von 1,1 % ausgeglichen wurde. Das bereinigte EBITDA stieg um 5,3 % auf 139 Millionen Euro. Für die ersten sechs Monate 2024 stieg der Umsatz um 1,1 % auf 1.537 Millionen Euro, mit einem organischen Wachstum von 0,4 %. Das bereinigte EBITDA fiel jedoch um 6,1 % auf 262 Millionen Euro. Das Unternehmen bestätigt seine Prognose für 2024 für ein Umsatzwachstum von 3 % bis 4 %, ein bereinigtes EBITDA-Wachstum von 4 % bis 6 % und einen bereinigten EPS von 1,75 € - 1,80 €.
CEO Stéfan Descheemaeker äußerte Vertrauen in das Erreichen eines profitablen Volumenwachstums in der zweiten Hälfte 2024, unterstützt durch Produkte mit hohen Margen und Produktivitätsinitiativen. Mitbegründer Noam Gottesman bemerkte den Übergang von der Sicherung der Rentabilität zum Wachstumstreiber in einem sich verbessernden europäischen Konsumumfeld. Zu den wichtigsten finanziellen Kennzahlen gehören ein Anstieg des Bruttogewinns um 10,8 % auf 233 Millionen Euro sowie ein Anstieg der bereinigten Betriebskosten um 15,4 % aufgrund erhöhter Investitionen.
- Revenue increased by 1.1% to €753 million in Q2 2024.
- Adjusted EPS rose to €0.44.
- Adjusted EBITDA increased by 5.3% to €139 million.
- Gross profit increased by 10.8% to €233 million.
- Gross margin improved by 270 basis points to 30.9%.
- Strong volume recovery with a 1.6% increase.
- Reiterated 2024 guidance with expected revenue growth of 3%-4%.
- Adjusted operating expenses rose by 15.4% due to increased A&P investments and inflationary pressures.
- Price/mix declined by 1.1%, impacting revenue growth.
- Adjusted EBITDA decreased by 6.1% to €262 million for the first six months of 2024.
- Adjusted EPS decreased to €0.81 for the first six months of 2024.
Insights
Nomad Foods' Q2 2024 results show modest growth and improved profitability. Key highlights:
- Revenue up
1.1% to€753 million - Organic revenue growth of
0.5% - Volume growth of
1.6% , reversing recent declines - Adjusted EBITDA increased
5.3% to€139 million - Adjusted EPS up
€0.04 to€0.44
The volume recovery and gross margin expansion to
Nomad's results reflect broader European consumer trends. The volume growth suggests easing inflation pressures are allowing consumers to return to frozen foods after a period of trading down. The success of Nomad's "must-win battles" and new growth platforms indicates effective product innovation and marketing resonating with consumers. The
From a risk perspective, Nomad's Q2 results are generally positive. The return to volume growth reduces risks associated with market share erosion. Improved profitability and cash flow conversion of
- Continued A&P investments may pressure margins if growth doesn't accelerate
- Full-year guidance implies significant H2 acceleration - execution risk
- Potential for renewed input cost inflation could squeeze margins
- Currency volatility, with
48% of sales in GBP
Overall, Nomad's financial position appears solid, but achieving full-year targets will be important for maintaining investor confidence. The company's diversified portfolio and strong market positions provide some buffer against potential headwinds.
Volume recovery on-track; Revenue growth of +
Reiterates full year 2024 financial guidance
WOKING,
- 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
Management Comments
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
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 of0.5% was driven by favorable volume1.6% , a marked improvement from a decline of2.2% in 1Q24. This was offset by price/mix decline of1.1% . - Gross profit increased
10.8% to€233 million . Gross margin increased 270 basis points to30.9% 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 t o€0.44 . Reported EPS increased€0.15 t o€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 of0.4% was driven by favorable price/mix of0.9% . Volume decline moderated to0.5% . - Gross profit increased
2.2% to€444 million . Gross margin increased 30 basis points to28.9% , 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 t o€0.81 . Reported EPS increased€0.13 t o€0.65 .
2024 Guidance
For the full year 2024, the Company continues to expect organic revenue growth of
Conference Call and Webcast
The Company will host a conference call with members of the executive management team to discuss these results today, Wednesday, August 7, 2024 at 1:30 p.m. BST (8:30 a.m. Eastern Daylight Time). To participate on the live call, listeners in North America may dial +1-877-451-6152 and international listeners may dial +1-201-389-0879. 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
Enquiries
Investor Relations Contact
Jason English
investorrelations@nomadfoods.com
About Nomad Foods
Nomad Foods (NYSE: NOMD) is
Non-IFRS Financial Information
Nomad Foods is presenting Adjusted and Organic financial information, which is considered non-IFRS financial information, for the three and six months ended June 30, 2024 and for comparative purposes, the three and six months ended June 30, 2023.
Adjusted financial information for the three and six months ended June 30, 2024 and 2023 presented in this press release reflects the historical reported financial statements of Nomad Foods, adjusted primarily for share based payment expenses and related employer payroll taxes, non-operating M&A related costs, exceptional items and foreign currency translation charges/gains.
Adjusted EBITDA is profit or loss for the period before taxation, net financing costs, depreciation and amortization, adjusted to exclude, when they occur, the impacts of exited markets, acquisition purchase price adjustments 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 Profit for the period is defined as profit for the period excluding, when they occur, the impacts of exited markets, acquisition purchase price adjustments 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 Profit after tax provides important comparability of underlying operating results, allowing investors and management to assess operating performance on a consistent basis.
Adjusted EPS is defined as basic earnings per share excluding, when they occur, the impacts of exited markets, acquisition purchase price adjustments and exceptional items such as restructuring charges, goodwill and intangible asset impairment charges, 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 growth/(decline) is an adjusted measurement of our operating results. The comparison for the three and six months ended June 30, 2024 and 2023 presented in this press release takes into consideration only those activities that were in effect during both time periods. Organic revenue growth/(decline) reflects reported revenue adjusted for currency translation and non-comparable trading items such as expansion, acquisitions, disposals, closures, trading day impacts or any other event that artificially impacts the comparability of our results period over period.
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 Free Cash Flow – Adjusted free cash flow is the amount of cash generated from operating activities before cash flows related to exceptional items (as described above), non-operating M&A related costs and working capital movements on employer taxes associated with share based payment awards, but after capital expenditure (on property, plant and equipment and intangible assets), net interest paid, proceeds/(payments) on settlement of derivatives where hedge accounting is not applied and payments of lease liabilities. Adjusted free cash flow reflects cash flows that could be used for payment of dividends, repayment of debt or to fund acquisitions or other strategic objectives.
Cash flow conversion is Adjusted Free Cash Flow as percentage of Adjusted Profit for the period.
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.
Nomad Foods believe its 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 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.
Please see on pages 8 to 13, the non-IFRS reconciliation tables attached hereto and the schedules accompanying this release for an explanation and reconciliation of the Adjusted and Organic financial information to the most directly comparable IFRS measure. The Company is unable to reconcile, without unreasonable efforts, Organic Growth, Adjusted EBITDA and Adjusted EPS guidance to the most directly comparable IFRS measure.
Nomad Foods Limited As Reported Condensed Consolidated Interim Statements of Profit or Loss (unaudited) Three months ended June 30, 2024 and June 30, 2023 | |||
Three months ended | Three months ended | ||
€m | €m | ||
Revenue | 753.1 | 745.1 | |
Cost of sales | (520.3) | (535.0) | |
Gross profit | 232.8 | 210.1 | |
Other operating expenses | (119.3) | (103.9) | |
Exceptional items | (12.4) | (10.5) | |
Operating profit | 101.1 | 95.7 | |
Finance income | 18.0 | 1.9 | |
Finance costs | (31.4) | (37.2) | |
Net financing costs | (13.4) | (35.3) | |
Profit before tax | 87.7 | 60.4 | |
Taxation | (16.8) | (11.2) | |
Profit for the period | 70.9 | 49.2 | |
Basic and diluted earnings per share in € | 0.43 | 0.28 | |
Statements of Profit or Loss (unaudited) Six months ended June 30, 2024 and June 30, 2023 | |||
Six months ended | Six months ended | ||
€m | €m | ||
Revenue | 1,536.8 | 1,520.2 | |
Cost of sales | (1,093.1) | (1,085.9) | |
Gross profit | 443.7 | 434.3 | |
Other operating expenses | (234.7) | (218.4) | |
Exceptional items | (35.9) | (40.6) | |
Operating profit | 173.1 | 175.3 | |
Finance income | 23.9 | 3.0 | |
Finance costs | (67.4) | (67.3) | |
Net financing costs | (43.5) | (64.3) | |
Profit before tax | 129.6 | 111.0 | |
Taxation | (24.2) | (20.6) | |
Profit for the period | 105.4 | 90.4 | |
Basic and diluted earnings per share in € | 0.65 | 0.52 | |
Nomad Foods Limited As Reported Condensed Consolidated Interim Statements of Financial Position As at June 30, 2024 (unaudited) and December 31, 2023 (audited) | |||
As at June 30, 2024 | As at December 31, 2023 | ||
€m | €m | ||
Non-current assets | |||
Goodwill | 2,104.2 | 2,105.0 | |
Intangibles | 2,469.6 | 2,468.2 | |
Property, plant and equipment | 562.5 | 563.7 | |
Other non-current assets | 7.3 | 7.1 | |
Derivative financial instruments | 1.7 | 0.7 | |
Deferred tax assets | 111.6 | 106.9 | |
Total non-current assets | 5,256.9 | 5,251.6 | |
Current assets | |||
Cash and cash equivalents | 327.7 | 412.9 | |
Inventories | 433.7 | 446.4 | |
Trade and other receivables | 345.1 | 263.4 | |
Current tax receivable | 42.7 | 40.7 | |
Indemnification assets | 0.5 | 0.5 | |
Short-term investments | 5.7 | — | |
Derivative financial instruments | 6.7 | 1.2 | |
Total current assets | 1,162.1 | 1,165.1 | |
Total assets | 6,419.0 | 6,416.7 | |
Current liabilities | |||
Trade and other payables | 729.9 | 769.8 | |
Current tax payable | 202.2 | 189.5 | |
Provisions | 26.1 | 35.1 | |
Loans and borrowings | 24.7 | 21.4 | |
Derivative financial instruments | 11.5 | 12.2 | |
Total current liabilities | 994.4 | 1,028.0 | |
Non-current liabilities | |||
Loans and borrowings | 2,120.8 | 2,113.7 | |
Employee benefits | 145.2 | 158.3 | |
Other non-current liabilities | 0.5 | 0.5 | |
Provisions | 2.8 | 1.4 | |
Derivative financial instruments | 59.7 | 97.8 | |
Deferred tax liabilities | 430.3 | 425.1 | |
Total non-current liabilities | 2,759.3 | 2,796.8 | |
Total liabilities | 3,753.7 | 3,824.8 | |
Net assets | 2,665.3 | 2,591.9 | |
Equity attributable to equity holders | |||
Share capital and capital reserve | 1,415.1 | 1,426.1 | |
Share-based compensation reserve | 23.1 | 31.4 | |
Translation reserve | 113.6 | 101.0 | |
Other reserves | (12.1) | (24.6) | |
Retained earnings | 1,125.6 | 1,058.0 | |
Total equity | 2,665.3 | 2,591.9 | |
Nomad Foods Limited As Reported Condensed Consolidated Interim Statements of Cash Flows (unaudited) For the six months ended June 30, 2024 and the six months ended June 30, 2023 | |||
For the six months ended | For the six months ended | ||
€m | €m | ||
Cash flows from operating activities | |||
Profit for the period | 105.4 | 90.4 | |
Adjustments for: | |||
Exceptional items | 35.9 | 40.6 | |
Share based payment expense | 5.0 | 15.5 | |
Depreciation and amortization | 46.3 | 45.6 | |
Loss on disposal of property, plant and equipment | 0.4 | 0.6 | |
Net finance costs | 43.5 | 64.3 | |
Taxation | 24.2 | 20.6 | |
Operating cash flow before changes in working capital, provisions and | 260.7 | 277.6 | |
Decrease/(increase) in inventories | 14.5 | (25.5) | |
Increase in trade and other receivables | (81.1) | (43.4) | |
(Decrease)/increase in trade and other payables | (22.4) | 1.9 | |
Decrease in employee benefits and other provisions | (0.6) | (1.3) | |
Cash generated from operations before tax and exceptional items | 171.1 | 209.3 | |
Cash flows relating to exceptional items | (40.8) | (30.2) | |
Tax paid | (19.0) | (30.3) | |
Net cash generated from operating activities | 111.3 | 148.8 | |
Cash flows from investing activities | |||
Purchase of property, plant and equipment and intangibles | (39.9) | (40.0) | |
Interest received | 3.7 | 2.7 | |
Redemption of investments | — | 0.3 | |
Cash used in investing activities | (36.2) | (37.0) | |
Cash flows from financing activities | |||
Repurchase of ordinary shares | (19.2) | (52.6) | |
Issuance of new loan principal | — | 6.0 | |
Payments related to shares withheld for taxes | (4.6) | (6.3) | |
Payment of lease liabilities | (14.6) | (14.0) | |
Dividends paid | (45.1) | — | |
Payment of financing fees | (1.7) | (0.6) | |
Interest paid | (60.8) | (51.4) | |
Net cash used in financing activities | (146.0) | (118.9) | |
Net decrease in cash and cash equivalents | (70.9) | (7.1) | |
Cash and cash equivalents at beginning of period | 399.7 | 366.8 | |
Effect of exchange rate fluctuations | (1.1) | (5.0) | |
Cash and cash equivalents at end of period | 327.7 | 354.7 | |
Nomad Foods Limited |
Adjusted Financial Information |
(In € millions, except per share data) |
Reconciliation of Non-IFRS Financial Measures |
The following table reconciles adjusted financial information for the three months ended June 30, 2024 to the reported results of Nomad Foods for such period. |
Adjusted Statement of Profit or Loss (unaudited) Three Months Ended June 30, 2024
| |||||||
€ in millions, except per share data | As reported for the | Adjustments | As adjusted for the | ||||
Revenue | 753.1 | — | 753.1 | ||||
Cost of sales | (520.3) | — | (520.3) | ||||
Gross profit | 232.8 | — | 232.8 | ||||
Other operating expenses | (119.3) | 2.7 | (a) | (116.6) | |||
Exceptional items | (12.4) | 12.4 | (b) | — | |||
Operating profit | 101.1 | 15.1 | 116.2 | ||||
Finance income | 18.0 | (16.0) | 2.0 | ||||
Finance costs | (31.4) | 2.3 | (29.1) | ||||
Net financing costs | (13.4) | (13.7) | (c) | (27.1) | |||
Profit before tax | 87.7 | 1.4 | 89.1 | ||||
Taxation | (16.8) | (0.5) | (d) | (17.3) | |||
Profit for the period | 70.9 | 0.9 | 71.8 | ||||
Weighted average shares outstanding in millions - basic | 163.0 | 163.0 | |||||
Basic earnings per share | 0.43 | 0.44 | |||||
Weighted average shares outstanding in millions - diluted | 163.1 | 163.1 | |||||
Diluted earnings per share | 0.43 | 0.44 | |||||
(a) | Represents share based payment charge including employer payroll taxes of |
(b) | Represents exceptional items which management believes are non-recurring and do not have a continuing impact. See Note 6, Exceptional items, within 'Exhibit 99.2 - Condensed Consolidated Interim Financial Statements' for a detailed list of exceptional items. |
(c) | Elimination of |
(d) | Represents tax impact of the above at the applicable tax rate for each adjustment, determined by the nature of the item and the jurisdiction in which it arises. |
Reconciliation of Non-IFRS Financial Measures (continued) |
The following table reconciles adjusted financial information for the three months ended June 30, 2023 to the reported results of Nomad Foods for such period. |
Adjusted Statement of Profit or Loss (unaudited) Three Months Ended June 30, 2023
| |||||||
€ in millions, except per share data | As reported for the | Adjustments | As adjusted for the | ||||
Revenue | 745.1 | — | 745.1 | ||||
Cost of sales | (535.0) | — | (535.0) | ||||
Gross profit | 210.1 | — | 210.1 | ||||
Other operating expenses | (103.9) | 2.9 | (a) | (101.0) | |||
Exceptional items | (10.5) | 10.5 | (b) | — | |||
Operating profit | 95.7 | 13.4 | 109.1 | ||||
Finance income | 1.9 | (0.3) | 1.6 | ||||
Finance costs | (37.2) | 12.2 | (25.0) | ||||
Net financing costs | (35.3) | 11.9 | (c) | (23.4) | |||
Profit before tax | 60.4 | 25.3 | 85.7 | ||||
Taxation | (11.2) | (5.8) | (d) | (17.0) | |||
Profit for the period | 49.2 | 19.5 | 68.7 | ||||
Weighted average shares outstanding in millions - basic | 173.7 | 173.7 | |||||
Basic earnings per share | 0.28 | 0.40 | |||||
Weighted average shares outstanding in millions - diluted | 173.7 | 173.7 | |||||
Diluted earnings per share | 0.28 | 0.40 | |||||
(a) | Represents share based payment charge including employer payroll taxes of |
(b) | Represents exceptional items which management believes are non-recurring and do not have a continuing impact. See Note 6, Exceptional items, within 'Exhibit 99.2 - Condensed Consolidated Interim Financial Statements' for a detailed list of exceptional items. |
(c) | Elimination of |
(d) | Represents tax impact of the above at the applicable tax rate for each adjustment, determined by the nature of the item and the jurisdiction in which it arises. |
Reconciliation of Non-IFRS Financial Measures (continued) |
The following table reconciles adjusted financial information for the six months ended June 30, 2024 to the reported results of Nomad Foods for such period. |
Adjusted Statement of Profit or Loss (unaudited) Six Months Ended June 30, 2024
| |||||||
€ in millions, except per share data | As reported for the | Adjustments | As adjusted for the | ||||
Revenue | 1,536.8 | — | 1,536.8 | ||||
Cost of sales | (1,093.1) | — | (1,093.1) | ||||
Gross profit | 443.7 | — | 443.7 | ||||
Other operating expenses | (234.7) | 6.4 | (a) | (228.3) | |||
Exceptional items | (35.9) | 35.9 | (b) | — | |||
Operating profit | 173.1 | 42.3 | 215.4 | ||||
Finance income | 23.9 | (20.1) | 3.8 | ||||
Finance costs | (67.4) | 12.7 | (54.7) | ||||
Net financing costs | (43.5) | (7.4) | (c) | (50.9) | |||
Profit before tax | 129.6 | 34.9 | 164.5 | ||||
Taxation | (24.2) | (7.9) | (d) | (32.1) | |||
Profit for the period | 105.4 | 27.0 | 132.4 | ||||
Weighted average shares outstanding in millions - basic | 163.1 | 163.1 | |||||
Basic earnings per share | 0.65 | 0.81 | |||||
Weighted average shares outstanding in millions - diluted | 163.2 | 163.2 | |||||
Diluted earnings per share | 0.65 | 0.81 | |||||
(a) | Represents share based payment charge including employer payroll taxes of |
(b) | Exceptional items which management believes are non-recurring and do not have a continuing impact. See Note 6, Exceptional items, within 'Exhibit 99.2 - Condensed Consolidated Interim Financial Statements' for a detailed list of exceptional items. |
(c) | Elimination of |
(d) | Represents tax impact of the above at the applicable tax rate for each adjustment, determined by the nature of the item and the jurisdiction in which it arises. |
Reconciliation of Non-IFRS Financial Measures (continued) |
The following table reconciles adjusted financial information for the six months ended June 30, 2023 to the reported results of Nomad Foods for such period. |
Adjusted Statement of Profit or Loss (unaudited) Six Months Ended June 30, 2023
| |||||||
€ in millions, except per share data | As reported for the | Adjustments | As adjusted for the | ||||
Revenue | 1,520.2 | — | 1,520.2 | ||||
Cost of sales | (1,085.9) | — | (1,085.9) | ||||
Gross profit | 434.3 | — | 434.3 | ||||
Other operating expenses | (218.4) | 17.2 | (a) | (201.2) | |||
Exceptional items | (40.6) | 40.6 | (b) | — | |||
Operating profit | 175.3 | 57.8 | 233.1 | ||||
Finance income | 3.0 | (0.3) | 2.7 | ||||
Finance costs | (67.3) | 18.1 | (49.2) | ||||
Net financing costs | (64.3) | 17.8 | (c) | (46.5) | |||
Profit before tax | 111.0 | 75.6 | 186.6 | ||||
Taxation | (20.6) | (16.7) | (d) | (37.3) | |||
Profit for the period | 90.4 | 58.9 | 149.3 | ||||
Weighted average shares outstanding in millions - basic | 174.1 | 174.1 | |||||
Basic earnings per share | 0.52 | 0.86 | |||||
Weighted average shares outstanding in millions - diluted | 174.2 | 174.2 | |||||
Diluted earnings per share | 0.52 | 0.86 | |||||
(a) | Represents share based payment expense including employer payroll taxes of |
(b) | Exceptional items which management believes are non-recurring and do not have a continuing impact. See Note 6, Exceptional items, within 'Exhibit 99.2 - Condensed Consolidated Interim Financial Statements' for a detailed list of exceptional items. |
(c) | Elimination of |
(d) | Represents tax impact of the above at the applicable tax rate for each adjustment, determined by the nature of the item and the jurisdiction in which it arises. |
Reconciliation of Non-IFRS Financial Measures (continued) Reconciliation of Profit for the period to Adjusted EBITDA (unaudited) | |||||||
Three months ended | Six months ended | ||||||
€ in millions | June 30, 2024 | June 30, 2023 | June 30, 2024 | June 30, 2023 | |||
Profit for the period | 70.9 | 49.2 | 105.4 | 90.4 | |||
Taxation | 16.8 | 11.2 | 24.2 | 20.6 | |||
Net financing costs | 13.4 | 35.3 | 43.5 | 64.3 | |||
Depreciation & amortization | 23.2 | 23.3 | 46.3 | 45.6 | |||
Exceptional items (a) | 12.4 | 10.5 | 35.9 | 40.6 | |||
Other add-backs (b) | 2.7 | 2.9 | 6.4 | 17.2 | |||
Adjusted EBITDA | 139.4 | 132.4 | 261.7 | 278.7 | |||
Revenue | 753.1 | 745.1 | 1,536.8 | 1,520.2 | |||
Adjusted EBITDA margin (c) | 18.5 % | 17.8 % | 17.0 % | 18.3 % | |||
(a) | Adjustment to add back exceptional items. See Note 6, Exceptional items, within 'Exhibit 99.2 - Condensed Consolidated Interim Financial Statements' for a detailed list of exceptional items. |
(b) | Represents the elimination of share-based payment charges including employer payroll taxes for the three month period to June 30, 2024 of |
(c) | Adjusted EBITDA margin is calculated by dividing Adjusted EBITDA by Revenue. |
Nomad Foods Limited Adjusted Financial Information (continued) Appendix 1: Reconciliation from reported to organic revenue growth/(decline) Year on Year Growth - June 30, 2024 compared with June 30, 2023: | |||
Three Months Ended | Six Months Ended | ||
YoY change | YoY change | ||
Reported Revenue Growth | 1.1 % | 1.1 % | |
Of which: | |||
Organic Revenue Growth | 0.5 % | 0.4 % | |
Translational FX (a) | 0.6 % | 0.7 % | |
Total | 1.1 % | 1.1 % | |
(a) | Translational FX is 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. |
Forward-Looking Statements
Forward-Looking Statements and Disclaimers
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 expectations regarding (i) its future operating and financial performance, including its reiterated guidance with respect to organic revenue growth, Adjusted EBITDA growth, free cash flow conversion, Adjusted EPS, and Adjusted EPS growth for 2024; (ii) its ability to generate stronger bottom-line growth and superior shareholder returns; (iii) our growth and capital allocation strategies; and (iv) our sales and profit growth and success in 2024 and beyond.
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
No Offer or Solicitation
This release and referenced conference call is provided for informational purposes only and does not constitute an offer to sell, or an invitation to subscribe for, purchase or exchange, any securities or the solicitation of any vote or approval in any jurisdiction, nor shall there be any sale, issuance, exchange or transfer of the securities referred to in this press release in any jurisdiction in contravention of applicable law.
The release, publication or distribution of this announcement in certain jurisdictions may be restricted by law and therefore persons in such jurisdictions into which this announcement is released, published or distributed should inform themselves about and observe such restrictions.
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SOURCE Nomad Foods Limited
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