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Nomad Foods Releases Q1 2025 Financial Results

Nomad Foods Limited, the leading frozen food company in Europe, has announced its financial results for the first quarter of 2025, revealing a decline in revenue as compared to the same quarter in 2024. The quarterly report was published on May 8, 2025, presenting a complex picture for the company as it navigates through a challenging market environment.

Key Financial Highlights

During the first quarter ending March 31, 2025, Nomad Foods established a revenue of €760 million. This represents a 3.0% decrease from the previous year, where revenue was recorded at €783.7 million. The organic revenue also saw a decline of 3.6%, largely attributed to a volume decrease of 3.7%. Although there was a slight improvement in the price/mix by 0.1%, the overall market conditions pushed the sales numbers down.

One notable aspect of the financial results is the gross margin which increased by 90 basis points, signaling some resilience in the company's pricing strategy. Gross profit amounted to €212 million, a 0.3% increase, reflecting a strategy focused on supply chain productivity.

Management Insights

Stéfan Descheemaeker, the CEO of Nomad Foods, commented on the results in a management call, highlighting that despite some positive trends in market consumption, the company is experiencing significant retailer inventory destocking. This situation, combined with the later timing of the Easter holiday, has hindered sales growth. Descheemaeker stated, “We expect top-line growth to accelerate throughout the remainder of the year, but do not expect to recover the larger than expected destocking related losses incurred in the first quarter.” This cautious outlook has led to a recalibration of their full-year sales expectations.

Noam Gottesman, Co-Chairman and Founder, provided reassurance on the company’s strategic positioning. He emphasized that although quarterly results may vary, Nomad Foods is well-equipped to face current and future challenges, and its brand portfolio remains strong amid evolving consumer trends.

Adjusted EBITDA and EPS

The Adjusted EBITDA for Q1 2025 decreased by 1.8% to €120 million, while Adjusted Earnings Per Share (EPS) dropped by 5.4% to €0.35 from €0.37 in the same quarter last year. The underlying fluctuations in both figures have been closely scrutinized by investors, reflecting a need for Nomad Foods to sustain its operational efficiency in the midst of market uncertainties.

Future Guidance

Looking ahead, the management has updated its guidance for full-year 2025, forecasting organic revenue growth to be between 0%-2%, which is a revision from the previous guidance of 1%-3%. The Adjusted EBITDA growth forecast has also been moderated to 0%-2%, compared to the earlier 2%-4%. The Adjusted EPS guidance now stands between €1.82-€1.89, reflecting a strategic decision to focus on investment in their brands and product innovation, as well as addressing rising input costs and ongoing macroeconomic challenges.

In summary, while Nomad Foods acknowledges the hurdles presented in the current operating environment, its commitment to brand investment and adaptation to market trends positions it favorably for future growth. With a focus on nurturing its established brands like Birds Eye and Findus, the company aims to enhance its market presence going forward. As the year progresses, the company's ability to effectively navigate these challenges remains a focal point for stakeholders and investors alike.

Conference Call Reminder

Nomad Foods will host a conference call on May 8, 2025, to further discuss its financial results with the executive management team. Investors and stakeholders are invited to join the call to gain deeper insights into the company’s direction in 2025 and beyond.