Nomad Foods Projects Continued Revenue Growth as It Approaches 10-Year Milestone

Nomad Foods' Strategic Guidance for 2025

Nomad Foods Limited, the foremost frozen food company in Europe, recently shared its ambitious outlook for 2025 as it prepares for a key presentation at the 27th Annual ICR Conference. As the company celebrates its 10th anniversary on the stock market, it anticipates significant advancements in both revenue and Adjusted EBITDA for the tenth consecutive year. With recent market analysis showcasing strong growth trends, Nomad Foods is poised to leverage its unique position in the food industry effectively.

Key Performance Expectations

In its performance update, Nomad Foods projected an organic revenue growth of 1% to 3% for 2025. The company is also forecasting Adjusted EBITDA growth in the range of 2% to 4%. Despite plans to ramp up investments in products and marketing, they expect Adjusted Earnings Per Share (EPS) to land between €1.81 and €1.85 for the year. Another critical aspect of the 2025 plan is to maintain an adjusted free cash flow conversion rate of 90% or higher, which signals a robust operational efficiency strategy.

Reinforcing Brand Strength and Market Position

Stéfan Descheemaeker, the Chief Executive Officer of Nomad Foods, emphasized the company's unwavering momentum heading into the new year. "The strategy we have in place is witnessing profound effectiveness as reflected in our market share improvements and substantial volume growth anticipated towards the end of 2024," Descheemaeker stated.

The company attributes part of its success to the robust advertising and innovation initiatives implemented over the past year. By continuously focusing on high-margin products and strategically significant market segments, Nomad Foods aims to ensure sustained consumer engagement in an increasingly competitive landscape.

Adapting to Consumer Preferences

Notably, over two-thirds of Nomad Foods' revenue is projected to stem from high-quality seafood, poultry, and vegetable products, which align with the evolving consumer preferences for healthier, nutritious food options. The frozen food category shows promising potential for volume growth, presenting an adequate space for exploration and expansion. This commitment highlights the company's proactive stance on adapting to changing dietary trends by emphasizing its investment in innovation and extensive marketing efforts.

Focus Areas for Growth

Nomad Foods plans to channel investment into its core "Must Win Battles" and growth platforms, further enhancing revenue management and productivity programs. The emphasis on augmented marketing budgets is geared toward fueling growth and establishing continued cooperation with retail partners. Descheemaeker expressed optimism about the coming year's prospects, “With robust underlying trends and a strategic approach, we believe we can replicate our market position for another fruitful year.”

Presentation at the ICR Conference

Stéfan Descheemaeker and Ruben Baldew, the Chief Financial Officer, are set to speak at the ICR Conference in Orlando, Florida, on January 14, 2025. The presentation will cover detailed insights into their plans for 2025 and the expected financial performance. Attendees and interested investors can access a live audio webcast of the discussion on Nomad Foods’ official website, along with post-event archives for a comprehensive overview of the presentation.

As Nomad Foods looks ahead, it stands firm in its belief that the steps undertaken now will result in significant long-term benefits—both in terms of financial performance and broader market positioning. The company not only anticipates meeting growth expectations but also aims to celebrate its 10th public anniversary by affirming its status as a leader in the European frozen food sector.

Conclusion

With a rich history and a focus on consumer-driven strategies, Nomad Foods continues to solidify its brand and market share through calculated investments and a thorough understanding of market dynamics. The road to 2025 appears promising, with an unwavering focus on quality, innovation, and financial prudence, marking another exciting chapter in the company’s storied journey.