Nomad Foods Sets Ambitious Financial Goals and Efficiency Plans Ahead of Investor Conference

Nomad Foods Sets New Financial Targets and Efficiency Initiatives

Nomad Foods Limited, a leading player in the frozen foods market, has recently reaffirmed its financial guidance for 2025 while unveiling ambitious new initiatives aimed at enhancing operational efficiency and cost savings. This announcement precedes their scheduled presentation at the Barclays Global Consumer Staples Conference on September 3, 2025.

Reiterated 2025 Guidance

The company's management continues to project a full-year organic revenue decline of between flat to -2%, while they anticipate an Adjusted EBITDA drop of 3% to 7% year-on-year. Shareholders can expect an Adjusted earnings per share (EPS) ranging from €1.64 to €1.76. Furthermore, Nomad Foods forecasts that its adjusted free cash flow will be maintained at a conversion rate of 90% or higher.

Enhanced Efficiency Program

In a bold move, Nomad Foods has launched an efficiency program set to achieve €200 million in operational savings over the fiscal years 2026 to 2028. They expect these savings to stem from a wide range of initiatives, with the new Procurement Transformational Program anticipated to play a pivotal role. The strategy focuses on optimizing manufacturing network utilization, reducing logistics costs, and unlocking overhead efficiencies. This prudence in managing operational costs is set to support reinvestments and help offset inflationary pressures.

Medium-Term Financial Goals

Looking further ahead, Nomad Foods has established medium-term financial targets that enhance investor confidence. For the 2026 to 2028 period, the company is set on realizing a compound annual growth rate (CAGR) for Adjusted EBITDA of 1% to 3%. They aim to increase Free Cash Flow by approximately 15%, compared to the 2023-2025 timeframe. This growth strategy will hinge on effective working capital management and a careful reduction of exceptional cash expenses. While specific revenue targets were not shared, the company aspires to align organic sales growth with the historical performance of the European Frozen food category, which has typically seen low single-digit growth.

Commercial Plan and Marketing Strategy

In tandem with these financial objectives, Nomad Foods is gearing up to bolster its brand presence through a series of marketing initiatives. The company plans to introduce a multimedia Masterbrand campaign across the UK and Ireland designed to highlight the nutritional benefits and taste of its Birds Eye brand. This campaign will also emphasize meal inspirations for its flagship products such as Fish Fingers, Peas, Chicken Dippers, and Potatoes. Nomad is also looking to extend this campaign throughout Europe by 2026.

Innovation is at the heart of Nomad's product strategy, showcasing several new offerings across its portfolio. Upcoming product launches include the 'get Real' protein meal bowl, McDonald's Veggie Nugget in the Nordic regions, and a new Chicken Station sub-brand in Italy, among others. Additionally, the introduction of Chicken Fries and expansion of Chicken Stripes in various markets is expected to drive further sales.

Insider Perspectives

Stéfan Descheemaeker, CEO of Nomad Foods, expressed satisfaction with the company's ability to stabilize market share in a challenging environment, emphasizing the effectiveness of their Commercial Flywheel strategy. He anticipates that the forthcoming Masterbrand campaign will deliver substantial impact when it launches this Fall, backed by a variety of innovative product introductions.

Ruben Baldew, CFO of Nomad Foods, underscored the comprehensive commercial strategies being developed to ensure consistent bottom-line growth. The new efficiency program is poised to address inflation, fund strategic investments, and ultimately enhance Adjusted EBITDA growth while also reducing exceptional expenses to bolster Free Cash Flow.

Looking Ahead

This investor presentation, set for 3:45 PM EST on September 3rd, will be accessible via a live webcast on Nomad Foods' investor relations website. By focusing on stringent financial discipline and innovative marketing, Nomad Foods is poised to navigate the evolving food market landscape effectively.

In conclusion, the latest developments from Nomad Foods signify a proactive approach to maintaining robust growth despite market volatility, reaffirming their commitment to both operational efficiency and customer satisfaction through quality offerings across the frozen food sector.