#United Kingdom #financial results #Frozen Food #Woking #Nomad Foods

Nomad Foods Reports Fourth Quarter and Full Year 2025 Financial Results

Nomad Foods Limited (NYSE: NOMD) has shared its financial performance for the fourth quarter and the entire year of 2025, presenting insights into revenue dynamics and strategic efforts to drive growth. The results indicate a continuation of operational adjustments aimed at enhancing value creation potential.

Financial Highlights for Q4 2025

In the fourth quarter, Nomad Foods observed a 2.6% decrease in reported revenue, dropping to €773 million compared to the same period in 2024. Despite the decline, organic revenue fell by only 1.3%, along with a 1.1% volume decline. Interestingly, retail sell-out saw an uptick of 0.7% year-on-year, demonstrating a slight recovery in consumer demand.

However, the financial bottom line was affected significantly by exceptional items, including a €57 million loss due to refinancing efforts. The company faced a net loss of €11 million, a sharp fall from the €51 million profit reported in the same quarter last year. Adjusted EBITDA for the quarter stood at €131 million, representing a decrease of 4.7% compared to Q4 2024.

Year-End Performance

The full-year results echoed similar patterns, with total revenue at €3 billion, down by 2.2% from the previous year. Adjusted EBITDA fell 7.5% to €523 million, as the company navigated inflationary pressures and supply chain challenges. Notably, Nomad returned €287 million to shareholders, a notable 38% increase in capital distribution compared to 2024, highlighting its commitment to shareholder value even in challenging times.

Management Insights

Dominic Brisby, the CEO of Nomad Foods, emphasized the ongoing transformation efforts within the organization, expressing confidence in the future. He stated, “The Company possesses fantastic brands and has strong category growth tailwinds at its back. I am excited to show investors what Nomad Foods is capable of once we see the results of our new approach.” Brisby also plans to make a substantial open-market purchase of shares, signifying his confidence in the potential of Nomad Foods.

Co-Chairman Noam Gottesman reflected on the potential for significant value creation and reiterated the board’s support during this transition period. He remarked on the company's strong portfolio and category growth, urging stakeholders to remain optimistic about the operational changes taking place.

Transition Year Ahead

Looking ahead, Nomad Foods forecasts that 2026 will be a year of transition. The company expects organic revenue to decline by 2-5% and Adjusted EBITDA to decrease by 5-10%. The anticipated Adjusted EPS for the year ranges between €1.45 and €1.60, marking a decline of 4-13%. This outlook reflects the necessary adjustments as the company lays the groundwork for long-term growth and profitability.

In conclusion, while 2025 presented challenges for Nomad Foods, the brand remains steadfast in its strategic initiatives to enhance operational efficiency and shareholder value. As the organization focuses on transforming its structure and improving performance, stakeholders are encouraged to watch closely as these changes unfold in the upcoming fiscal year.