Nomad Foods Achieves Record Financial Performance in 2024 and Lifts 2025 Earnings Forecast
Nomad Foods Limited (NYSE: NOMD), Europe's leading frozen food company, reported outstanding results for both the fourth quarter and the entire fiscal year 2024, marking an incredible achievement that solidifies its position in the industry. The report highlights a record-high net sales for the ninth consecutive year, complemented by operational excellence and significant market share gains.
For the fourth quarter ending December 31, 2024, Nomad Foods recorded a revenue increase of 4.3% compared to the same period in 2023, which amounted to €793 million. This growth was bolstered by an organic revenue increase of 3.1% primarily fueled by a notable 4.7% rise in volume. This trend of robust performance reflects the company’s strategic investment in its core brands and operational efficiency. Even more impressive, Nomad reported an adjusted EBITDA of €137 million for this quarter, a remarkable increase of 17.6%, with an adjusted earnings per share (EPS) rising 31% to €0.42.
When analyzing the full year results, Nomad Foods achieved a total revenue of €3.1 billion, which is a 1.8% increase from 2023. The company's growth narrative included organic revenue growth of 1.0% alongside a 1.3% increase in volume. Adjusted EBITDA for the year was recorded at €565 million, indicating a 5.6% rise from the previous year, while the adjusted EPS climbed 11% to €1.78.
Throughout the year, Nomad maintained a strong commitment to shareholder returns, distributing €208 million via dividends and share repurchases. Management’s confidence for the future is reflected in the increased guidance for adjusted EPS for 2025, now expected to be between €1.85 and €1.89, suggesting a growth range of 4-6%. This updated forecast is a significant improvement from earlier projections of €1.81 to €1.85. According to the CEO of Nomad Foods, Stéfan Descheemaeker, the momentum built in 2024 is expected to carry into 2025, driven by the company's focused brand investments and operational excellence.
As part of enhancing its financial stability and cash generation capabilities, the Board of Directors has approved a notable 13% increase in the company’s first-quarter cash dividend. This decision underscores Nomad Foods' steadfast confidence in its growth prospects and sustained shareholder value.
Looking ahead, Nomad Foods aims for continued organic revenue growth of 1%-3% and adjusted EBITDA growth of 2%-4% for 2025. The company is also prepared to increase investment in its brands and products substantially during the year. The company expects to maintain an adjusted free cash flow conversion rate of 90% or higher, ensuring robust financial health moving forward.
In summary, with its commitment to innovation, strategic investments, and operational improvements, Nomad Foods is poised to achieve its tenth consecutive year of sales and adjusted EBITDA growth. The company’s remarkable performance in 2024 sets a solid foundation for the future as it continues to expand its presence in the competitive food industry. The anticipated conference call following the financial announcement will shed further light on these results, and offer insights into the company’s strategic direction as it progresses through 2025 and beyond.
For the fourth quarter ending December 31, 2024, Nomad Foods recorded a revenue increase of 4.3% compared to the same period in 2023, which amounted to €793 million. This growth was bolstered by an organic revenue increase of 3.1% primarily fueled by a notable 4.7% rise in volume. This trend of robust performance reflects the company’s strategic investment in its core brands and operational efficiency. Even more impressive, Nomad reported an adjusted EBITDA of €137 million for this quarter, a remarkable increase of 17.6%, with an adjusted earnings per share (EPS) rising 31% to €0.42.
When analyzing the full year results, Nomad Foods achieved a total revenue of €3.1 billion, which is a 1.8% increase from 2023. The company's growth narrative included organic revenue growth of 1.0% alongside a 1.3% increase in volume. Adjusted EBITDA for the year was recorded at €565 million, indicating a 5.6% rise from the previous year, while the adjusted EPS climbed 11% to €1.78.
Throughout the year, Nomad maintained a strong commitment to shareholder returns, distributing €208 million via dividends and share repurchases. Management’s confidence for the future is reflected in the increased guidance for adjusted EPS for 2025, now expected to be between €1.85 and €1.89, suggesting a growth range of 4-6%. This updated forecast is a significant improvement from earlier projections of €1.81 to €1.85. According to the CEO of Nomad Foods, Stéfan Descheemaeker, the momentum built in 2024 is expected to carry into 2025, driven by the company's focused brand investments and operational excellence.
As part of enhancing its financial stability and cash generation capabilities, the Board of Directors has approved a notable 13% increase in the company’s first-quarter cash dividend. This decision underscores Nomad Foods' steadfast confidence in its growth prospects and sustained shareholder value.
Looking ahead, Nomad Foods aims for continued organic revenue growth of 1%-3% and adjusted EBITDA growth of 2%-4% for 2025. The company is also prepared to increase investment in its brands and products substantially during the year. The company expects to maintain an adjusted free cash flow conversion rate of 90% or higher, ensuring robust financial health moving forward.
In summary, with its commitment to innovation, strategic investments, and operational improvements, Nomad Foods is poised to achieve its tenth consecutive year of sales and adjusted EBITDA growth. The company’s remarkable performance in 2024 sets a solid foundation for the future as it continues to expand its presence in the competitive food industry. The anticipated conference call following the financial announcement will shed further light on these results, and offer insights into the company’s strategic direction as it progresses through 2025 and beyond.
Topics Consumer Products & Retail）
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