Retail sell-out growth accelerated through mid-June and market share improved in the quarter
Unfavorable weather presented unforeseen net sales headwinds
Lowering guidance given first half shortfall and to increase flexibility to absorb other unforeseen shortfalls
WOKING, England, Aug. 6, 2025 /PRNewswire/ -- Nomad Foods Limited (NYSE:NOMD), today reported financial results for the three and six month period ended June 30, 2025.
Key operating metrics and financial performance for the second quarter 2025, when compared to the second quarter 2024, include:
- Revenue decreased 0.8% to €747 million
- Organic revenue declined 1.1% with a volume decline of 1.0%
- Adjusted gross margin contracted 310 bps
- Adjusted EBITDA decreased 7.2% to €129 million
- Adjusted EPS decreased 9.1% to €0.40
Management Comments
Stéfan Descheemaeker, Nomad Foods' Chief Executive Officer, stated, "This year is proving to be more challenging than expected. Record-setting warm weather across many Western European markets has disrupted consumer behavior, leading to changes in retailer merchandising strategies and contributing to volume declines, particularly within our savory frozen categories. While this is unfortunate, we also recognize that it is transitory and our focus remains on what we can control. Our commercial flywheel remains effective, and our innovation and renovation initiatives are gaining momentum. This allowed us to improve market share in the quarter and accelerate our Nielsen and Circana measured retail sell-out growth to +1%, bringing our year-to-date retail sell-out growth to +0.7% through mid-June. We are excited about our innovation and activation plans and, assuming normalized weather, expect our organic sales to return to growth in the second half of the year. We are also taking incremental productivity actions to better equip us to control our own destiny and deliver consistent bottom-line growth and robust cash generation."
Noam Gottesman, Nomad Foods' Co-Chairman and Founder, commented, "While Nomad Foods has faced a number of external headwinds this year, I am encouraged by the improved in-market performance that the Company has achieved. The Company's ability to stabilize market share in the quarter demonstrates that its commercial plans are working. Furthermore, Nomad's growth initiatives for the remainder of this year and next year are impressive, and I believe that category growth will recover which will translate into strong financial results going forward. The underlying health of the business is strong."
Second Quarter of 2025 results compared to the Second Quarter of 2024
- Revenue decreased 0.8% to €747 million. Organic revenue decreased by 1.1% and was driven by a volume decline of 1.0% and price/mix decline of 0.1%.
- Adjusted gross profit decreased 10.8% to €208 million. Adjusted gross margin decreased 310 basis points to 27.8% due primarily to supply chain inflation headwinds.
- Adjusted operating expenses decreased 11.4% to €103 million due to a double-digit contraction in overhead costs in the quarter. Advertising and Promotion was down modestly YoY in the quarter and has risen 5% through the first half of the year.
- Adjusted EBITDA decreased 7.2% to €129 million due to the aforementioned factors and Adjusted Profit for the period decreased 16% to €61 million.
- Adjusted EPS decreased by €0.04 to €0.40 reflecting the decrease in Adjusted Profit for the period and fewer shares outstanding. Diluted EPS decreased €0.06 to €0.37.
First Six Months of 2025 results compared to the First Six Months of 2024
- Revenue decreased 1.9% to €1,507 million. Organic revenue decreased by 2.4% and was driven by a volume decline of 2.3%. and a decline in price/mix of 0.1%.
- Adjusted gross profit decreased 5.5% to €419 million. Adjusted gross margin decreased 110 basis points to 27.8%, due to supply chain inflation headwinds, partially offset with supply chain productivity and the lapping of inventory revaluation headwinds in the prior year.
- Adjusted operating expenses decreased 4.2% to €219 million as overhead cost reductions more than offset a mid single-digit year-to-date increase in Advertising and Promotion expense.
- Adjusted EBITDA decreased 4.7% to €249 million due to the aforementioned factors. Adjusted Profit for the period decreased 14% to €114 million.
- Adjusted EPS decreased by €0.07 to €0.74 reflecting the decrease in Adjusted Profit for the period and fewer shares outstanding. Diluted EPS decreased €0.07 to €0.58.
2025 Guidance
The Company is lowering its full-year guidance given weaker-than-expected first half results and to enhance its ability to absorb other unforeseen disruptions in the second half of the year, were they to occur. Full year organic revenue is now expected to be flat to -2% versus the prior expectation of a 0%-2% year-on-year change. The full year Adjusted EBITDA guidance range is now -3% to -7% year-on-year versus its prior outlook of 0%-2% year-on-year. Adjusted EPS is now expected to be in a range of €1.64 to €1.76 versus the previous range of €1.82-€1.89. Based on USD/EUR exchange rate as of July 30, 2025, this translates into 2025 Adjusted EPS range of $1.89 to $2.02. The Company is maintaining its full year adjusted free cash flow conversion guidance of 90% or greater.
Conference Call and Webcast
A pre-recorded management discussion of Nomad Foods' second quarter 2025 earnings and accompanying presentation is available at www.nomadfoods.com under Investor Relations. The Company will host a live question-and-answer session to discuss these results today, Wednesday, August 6, 2025 at 1:30 p.m. BST (8:30 a.m. Eastern Daylight Time). To participate on the live call listeners in North America may dial +1-844-676-5834 and international listeners may dial +1-412-634-6811. Additionally, the call is being webcast and can be accessed at the Nomad Foods website. A replay of the call will be available on the Company website for two weeks following the event and can be accessed by listeners in North America by dialing +1-844-512-2921 and by international listeners by dialing +1-412-317-6671; the replay pin number is 10200924.
Enquiries
Investor Relations Contact
Jason English
[email protected]
Media Contact
Oliver Thomas, Head of Corporate Affairs
[email protected]
About Nomad Foods
Nomad Foods (NYSE:NOMD) is Europe's leading frozen food company. The Company's portfolio of iconic brands, which includes Birds Eye, Findus, iglo, Ledo and Frikom, have been a part of consumers' meals for generations, standing for great tasting food that is convenient, high quality and nutritious. Nomad Foods is headquartered in the United Kingdom. Additional information may be found at www.nomadfoods.com.
Non-IFRS Financial Information
Nomad Foods is presenting Adjusted and Organic financial information, which is considered non-IFRS financial information, for the three and six months ended June 30, 2025 and for comparative purposes, the three and six months ended June 30, 2024.
Adjusted financial information for the three and six months ended June 30, 2025 and 2024 presented in this press release reflects the historical reported financial statements of Nomad Foods, adjusted primarily for, when they occur, share based payment expenses and related employer payroll taxes, non-operating M&A related costs, acquisition purchase price adjustments, exceptional items and foreign currency translation charges/gains.
Adjusted EBITDA is profit or loss for the period before taxation, net financing costs, depreciation and amortization, adjusted to exclude, when they occur, the impacts of exited markets, acquisition purchase price adjustments and exceptional items such as restructuring charges, goodwill and intangible asset impairment charges and other unusual or non-recurring items. In addition, we exclude other adjustments such as the impact of share based payment expenses and related employer payroll taxes, and non-operating M&A related costs, because we do not believe they are indicative of our normal operating costs, can vary significantly in amount and frequency, and are unrelated to our underlying operating performance. The Company believes Adjusted EBITDA provides important comparability of underlying operating results, allowing investors and management to assess operating performance on a consistent basis.
Adjusted EBITDA should not be considered as an alternative to profit/(loss) for the period, determined in accordance with IFRS, as an indicator of the Company's operating performance.
Adjusted Profit for the period is defined as profit for the period excluding, when they occur, the impacts of exited markets, acquisition purchase price adjustments and exceptional items such as restructuring charges, goodwill and intangible asset impairment charges, net financing income/(cost) on amendment of terms of debt, interest cost on tax relating to legacy tax audits, foreign exchange translation gains/(losses), foreign exchange gains/(losses) on derivatives, as well as certain other items considered unusual or non-recurring in nature. In addition, we exclude other adjustments such as the impact of share based payment expenses and related employer payroll taxes, and non-operating M&A related costs, because we do not believe they are indicative of our normal operating costs, can vary significantly in amount and frequency, and are unrelated to our underlying operating performance. The Company believes Adjusted Profit for the period provides important comparability of underlying operating results, allowing investors and management to assess operating performance on a consistent basis.
Adjusted EPS is defined as diluted earnings per share excluding, when they occur, the impacts of exited markets, acquisition purchase price adjustments and exceptional items such as restructuring charges, goodwill and intangible asset impairment charges, net financing income/(cost) on amendment of terms of debt, interest cost on tax relating to legacy tax audits, foreign exchange translation gains/(losses), foreign exchange gains/(losses) on derivatives, as well as certain other items considered unusual or non-recurring in nature. In addition, we exclude other adjustments such as the impact of share based payment expenses and related employer payroll taxes, and non-operating M&A related costs, because we do not believe they are indicative of our normal operating costs, can vary significantly in amount and frequency, and are unrelated to our underlying operating performance. The Company believes Adjusted EPS provides important comparability of underlying operating results, allowing investors and management to assess operating performance on a consistent basis.
Organic revenue growth/(decline) is an adjusted measurement of our operating results. The comparison for the three and six months ended June 30, 2025 and 2024 presented in this press release takes into consideration only those activities that were in effect during both time periods. Organic revenue growth/(decline) reflects reported revenue adjusted for currency translation and non-comparable trading items such as expansion, acquisitions, disposals, closures, trading day impacts or any other event that artificially impacts the comparability of our results period over period.
Adjusted Gross Profit and adjusted gross margin exclude accelerated depreciation associated with restructuring programs within cost of goods sold.
Adjustments for currency translation are calculated by translating data of the current and comparative periods using a budget foreign exchange rate that is set once a year as part of the Company's internal annual forecast process.
Adjusted Free Cash Flow – Adjusted free cash flow is the amount of cash generated from operating activities less cash flows related to exceptional items (as described above), non-operating M&A related costs and working capital movements on employer taxes associated with share based payment awards, plus capital expenditure (on property, plant and equipment and intangible assets), net interest paid, proceeds/(payments) on settlement of derivatives where hedge accounting is not applied and payments of lease liabilities. Adjusted free cash flow reflects cash flows that could be used for payment of dividends, repayment of debt or to fund acquisitions or other strategic objectives.
Cash flow conversion is Adjusted Free Cash Flow as a percentage of Adjusted Profit for the period.
Adjusted and Organic non-IFRS financial information should be read in conjunction with the unaudited financial statements of Nomad Foods included in this press release as well as the historical financial statements of the Company previously filed with the SEC.
Nomad Foods believe its non-IFRS financial measures provide an important additional measure with which to monitor and evaluate the Company's ongoing financial results, as well as to reflect its acquisitions. Nomad Foods' calculation of these financial measures may be different from the calculations used by other companies and comparability may therefore be limited. The Adjusted and Organic financial information presented herein is based upon certain assumptions that Nomad Foods believes to be reasonable and is presented for informational purposes only and is not necessarily indicative of any anticipated financial position or future results of operations that the Company will experience. You should not consider the Company's non-IFRS financial measures an alternative or substitute for the Company's reported results and are cautioned not to place undue reliance on these results and information as they may not be representative of our actual or future results as a Company.
Please see on pages 9 to 14, the non-IFRS reconciliation tables attached hereto and the schedules accompanying this release for an explanation and reconciliation of the Adjusted and Organic financial information to the most directly comparable IFRS measure. The
Company is unable to reconcile, without unreasonable efforts, Organic Growth, Adjusted EBITDA and Adjusted EPS guidance to the most directly comparable IFRS measure.
Nomad Foods Limited As Reported Condensed Consolidated Interim Statements of Profit or Loss (unaudited) Three months ended June 30, 2025 and June 30, 2024
| |||
Three months ended | Three months ended | ||
€m | €m | ||
Revenue | 746.9 | 753.1 | |
Cost of sales | (540.6) | (520.3) | |
Gross profit | 206.3 | 232.8 | |
Other operating expenses | (103.9) | (119.3) | |
Exceptional items | (14.9) | (12.4) | |
Operating profit | 87.5 | 101.1 | |
Finance income | 13.6 | 18.0 | |
Finance costs | (30.5) | (31.4) | |
Net financing costs | (16.9) | (13.4) | |
Profit before tax | 70.6 | 87.7 | |
Taxation | (13.5) | (16.8) | |
Profit for the period | 57.1 | 70.9 | |
Basic and diluted earnings per share in € | 0.37 | 0.43 | |
Statements of Profit or Loss (unaudited) Six months ended June 30, 2025 and June 30, 2024
| |||
Six months ended | Six months ended | ||
€m | €m | ||
Revenue | 1,507.0 | 1,536.8 | |
Cost of sales | (1,089.1) | (1,093.1) | |
Gross profit | 417.9 | 443.7 | |
Other operating expenses | (224.6) | (234.7) | |
Exceptional items | (32.0) | (35.9) | |
Operating profit | 161.3 | 173.1 | |
Finance income | 10.5 | 23.9 | |
Finance costs | (61.5) | (67.4) | |
Net financing costs | (51.0) | (43.5) | |
Profit before tax | 110.3 | 129.6 | |
Taxation | (20.5) | (24.2) | |
Profit for the period | 89.8 | 105.4 | |
Basic earnings per share in € | 0.59 | 0.65 | |
Diluted earnings per share in € | 0.58 | 0.65 | |
Nomad Foods Limited As Reported Condensed Consolidated Interim Statements of Financial Position As at June 30, 2025 (unaudited) and December 31, 2024 (audited)
| |||
As at June 30, 2025 | As at December 31, 2024 | ||
€m | €m | ||
Non-current assets | |||
Goodwill | 2,105.1 | 2,106.1 | |
Intangible assets | 2,474.4 | 2,472.9 | |
Property, plant and equipment | 585.6 | 591.1 | |
Other non-current assets | 7.3 | 8.6 | |
Derivative financial instruments | 1.9 | 4.3 | |
Deferred tax assets | 11.7 | 14.7 | |
Total non-current assets | 5,186.0 | 5,197.7 | |
Current assets | |||
Cash and cash equivalents | 266.6 | 403.3 | |
Inventories | 461.1 | 441.5 | |
Trade and other receivables | 423.3 | 334.6 | |
Current tax receivable | 35.1 | 37.6 | |
Derivative financial instruments | 4.0 | 16.9 | |
Total current assets | 1,190.1 | 1,233.9 | |
Total assets | 6,376.1 | 6,431.6 | |
Current liabilities | |||
Trade and other payables | 870.5 | 829.1 | |
Current tax payable | 213.3 | 226.7 | |
Provisions | 27.3 | 27.1 | |
Loans and borrowings | 29.9 | 26.0 | |
Derivative financial instruments | 21.7 | 14.4 | |
Total current liabilities | 1,162.7 | 1,123.3 | |
Non-current liabilities | |||
Loans and borrowings | 2,072.5 | 2,151.4 | |
Employee benefits | 149.2 | 152.1 | |
Other non-current liabilities | 0.3 | 0.5 | |
Provisions | 2.6 | 2.7 | |
Derivative financial instruments | 141.8 | 46.4 | |
Deferred tax liabilities | 283.3 | 292.7 | |
Total non-current liabilities | 2,649.7 | 2,645.8 | |
Total liabilities | 3,812.4 | 3,769.1 | |
Net assets | 2,563.7 | 2,662.5 | |
Equity attributable to equity holders | |||
Share capital and capital reserve | 1,227.7 | 1,316.4 | |
Share-based compensation reserve | 13.2 | 26.2 | |
Translation reserve | 111.5 | 135.3 | |
Other reserves | (32.6) | (14.9) | |
Retained earnings | 1,243.9 | 1,199.5 | |
Total equity | 2,563.7 | 2,662.5 | |
Nomad Foods Limited As Reported Condensed Consolidated Interim Statements of Cash Flows (unaudited) For the six months ended June 30, 2025 and the six months ended June 30, 2024
| |||
For the six months ended | For the six months ended | ||
€m | €m | ||
Cash flows from operating activities | |||
Profit for the period | 89.8 | 105.4 | |
Adjustments for: | |||
Exceptional items | 32.0 | 35.9 | |
Share based payment expense | 4.1 | 5.0 | |
Depreciation and amortization | 50.3 | 46.3 | |
Loss on disposal of property, plant and equipment | 0.4 | 0.4 | |
Net finance costs | 51.0 | 43.5 | |
Taxation | 20.5 | 24.2 | |
Operating cash flow before changes in working capital, provisions and exceptional items | 248.1 | 260.7 | |
(Increase)/decrease in inventories | (27.9) | 14.5 | |
Increase in trade and other receivables | (91.0) | (81.1) | |
Increase/(decrease) in trade and other payables | 56.4 | (22.4) | |
Decrease in employee benefits and other provisions | (1.0) | (0.6) | |
Cash generated from operations before tax and exceptional items | 184.6 | 171.1 | |
Payments relating to exceptional items | (30.8) | (40.8) | |
Tax paid | (33.6) | (19.0) | |
Net cash generated from operating activities | 120.2 | 111.3 | |
Cash flows from investing activities | |||
Purchase of property, plant and equipment and intangibles | (37.1) | (39.9) | |
Interest received | 2.4 | 3.7 | |
Net cash used in investing activities | (34.7) | (36.2) | |
Cash flows from financing activities | |||
Repurchase of ordinary shares | (100.5) | (19.2) | |
Payments related to shares withheld for taxes | (6.6) | (4.6) | |
Payment of lease liabilities | (17.0) | (14.6) | |
Dividends paid | (48.4) | (45.1) | |
Payment of financing fees | (0.2) | (1.7) | |
Interest paid | (51.6) | (60.8) | |
Net cash used in financing activities | (224.3) | (146.0) | |
Net decrease in cash and cash equivalents | (138.8) | (70.9) | |
Cash and cash equivalents at beginning of period | 403.3 | 399.7 | |
Effect of exchange rate fluctuations | 2.1 | (1.1) | |
Cash and cash equivalents at end of period | 266.6 | 327.7 | |
Nomad Foods Limited
Reconciliation of Non-IFRS Financial Measures
(In € millions, except per share data)
The following table reconciles adjusted financial information for the three months ended June 30, 2025 to the reported results of Nomad Foods for such period.
Adjusted Statement of Profit or Loss (unaudited) Three Months Ended June 30, 2025
| |||||||
€ in millions, except per share data | As reported for the | Adjustments | As adjusted for the | ||||
Revenue | 746.9 | — | 746.9 | ||||
Cost of sales | (540.6) | 1.4 | (a) | (539.2) | |||
Gross profit | 206.3 | 1.4 | 207.7 | ||||
Other operating expenses | (103.9) | 0.6 | (b) | (103.3) | |||
Exceptional items | (14.9) | 14.9 | (c) | — | |||
Operating profit | 87.5 | 16.9 | 104.4 | ||||
Finance income | 13.6 | (12.4) | 1.2 | ||||
Finance costs | (30.5) | — | (30.5) | ||||
Net financing costs | (16.9) | (12.4) | (d) | (29.3) | |||
Profit before tax | 70.6 | 4.5 | 75.1 | ||||
Taxation | (13.5) | (1.1) | (e) | (14.6) | |||
Profit for the period | 57.1 | 3.4 | 60.5 | ||||
Weighted average shares outstanding in millions - basic | 152.4 | 152.4 | |||||
Basic earnings per share | 0.37 | 0.40 | |||||
Weighted average shares outstanding in millions - diluted | 152.6 | 152.6 | |||||
Diluted earnings per share | 0.37 | 0.40 | |||||
(a) | Represents elimination of €1.4 million of accelerated depreciation related to assets impacted by the planned closure of a factory in Sweden as part of the Company's multi-year supply chain network optimization program. |
(b) | Represents share based payment charge including employer payroll taxes of €0.4 million and non-operating M&A transaction costs of €0.2 million. |
(c) | Represents exceptional items which management believes are non-recurring and do not have a continuing impact. See Note 6, Exceptional items, within 'Exhibit 99.2 - Condensed Consolidated Interim Financial Statements' for a detailed list of exceptional items. |
(d) | Represents elimination of €12.4 million of foreign exchange translation gains. |
(e) | Represents tax impact of the above at the applicable tax rate for each adjustment, determined by the nature of the item and the jurisdiction in which it arises. |
Nomad Foods Limited
Reconciliation of Non-IFRS Financial Measures (continued)
The following table reconciles adjusted financial information for the three months ended June 30, 2024 to the reported results of Nomad Foods for such period.
Adjusted Statement of Profit or Loss (unaudited) Three Months Ended June 30, 2024
| |||||||
€ in millions, except per share data | As reported for the | Adjustments | As adjusted for the | ||||
Revenue | 753.1 | — | 753.1 | ||||
Cost of sales | (520.3) | — | (520.3) | ||||
Gross profit | 232.8 | — | 232.8 | ||||
Other operating expenses | (119.3) | 2.7 | (a) | (116.6) | |||
Exceptional items | (12.4) | 12.4 | (b) | — | |||
Operating profit | 101.1 | 15.1 | 116.2 | ||||
Finance income | 18.0 | (16.0) | 2.0 | ||||
Finance costs | (31.4) | 2.3 | (29.1) | ||||
Net financing costs | (13.4) | (13.7) | (c) | (27.1) | |||
Profit before tax | 87.7 | 1.4 | 89.1 | ||||
Taxation | (16.8) | (0.5) | (d) | (17.3) | |||
Profit for the period | 70.9 | 0.9 | 71.8 | ||||
Weighted average shares outstanding in millions - basic | 163.0 | 163.0 | |||||
Basic earnings per share | 0.43 | 0.44 | |||||
Weighted average shares outstanding in millions - diluted | 163.1 | 163.1 | |||||
Diluted earnings per share | 0.43 | 0.44 | |||||
(a) | Represents share based payment charge including employer payroll taxes of €2.4 million and non-operating M&A transaction costs of €0.3 million. |
(b) | Represents exceptional items which management believes are non-recurring and do not have a continuing impact. See Note 6, Exceptional items, within 'Exhibit 99.2 - Condensed Consolidated Interim Financial Statements' for a detailed list of exceptional items. |
(c) | Represents elimination of €10.3 million of net gains on repricing of debt, a one-time €5.7 million gain from reversal of the impairment of a short-term investment which was made with surplus cash as part of our cash management activities, €2.1 million of foreign exchange translation losses and €0.2 million of losses on derivatives. |
(d) | Represents tax impact of the above at the applicable tax rate for each adjustment, determined by the nature of the item and the jurisdiction in which it arises. |
Reconciliation of Non-IFRS Financial Measures (continued)
The following table reconciles adjusted financial information for the six months ended June 30, 2025 to the reported results of Nomad Foods for such period.
Adjusted Statement of Profit or Loss (unaudited) Six Months Ended June 30, 2025
| |||||||
€ in millions, except per share data | As reported for | Adjustments | As adjusted for the | ||||
Revenue | 1,507.0 | — | 1,507.0 | ||||
Cost of sales | (1,089.1) | 1.4 | (a) | (1,087.7) | |||
Gross profit | 417.9 | 1.4 | 419.3 | ||||
Other operating expenses | (224.6) | 5.8 | (b) | (218.8) | |||
Exceptional items | (32.0) | 32.0 | (c) | — | |||
Operating profit | 161.3 | 39.2 | 200.5 | ||||
Finance income | 10.5 | (7.8) | 2.7 | ||||
Finance costs | (61.5) | — | (61.5) | ||||
Net financing costs | (51.0) | (7.8) | (d) | (58.8) | |||
Profit before tax | 110.3 | 31.4 | 141.7 | ||||
Taxation | (20.5) | (7.1) | (e) | (27.6) | |||
Profit for the period | 89.8 | 24.3 | 114.1 | ||||
Weighted average shares outstanding in millions - basic | 153.5 | 153.5 | |||||
Basic earnings per share | 0.59 | 0.74 | |||||
Weighted average shares outstanding in millions - diluted | 153.7 | 153.7 | |||||
Diluted earnings per share | 0.58 | 0.74 | |||||
(a) | Represents elimination of €1.4 million of incremental depreciation related to assets impacted by the planned closure of a factory in Sweden as part of the Company's multi-year supply chain network optimization program. |
(b) | Represents share based payment charge including employer payroll taxes of €5.3 million and non-operating M&A transaction costs of €0.5 million. |
(c) | Represents exceptional items which management believes are non-recurring and do not have a continuing impact. See Note 6, Exceptional items, within 'Exhibit 99.2 - Condensed Consolidated Interim Financial Statements' for a detailed list of exceptional items. |
(d) | Represents elimination of €7.8 million of foreign exchange translation gains. |
(e) | Represents tax impact of the above at the applicable tax rate for each adjustment, determined by the nature of the item and the jurisdiction in which it arises. |
Reconciliation of Non-IFRS Financial Measures (continued)
The following table reconciles adjusted financial information for the six months ended June 30, 2024 to the reported results of Nomad Foods for such period.
Adjusted Statement of Profit or Loss (unaudited) Six Months Ended June 30, 2024
| |||||||
€ in millions, except per share data | As reported for the | Adjustments | As adjusted for | ||||
Revenue | 1,536.8 | — | 1,536.8 | ||||
Cost of sales | (1,093.1) | — | (1,093.1) | ||||
Gross profit | 443.7 | — | 443.7 | ||||
Other operating expenses | (234.7) | 6.4 | (a) | (228.3) | |||
Exceptional items | (35.9) | 35.9 | (b) | — | |||
Operating profit | 173.1 | 42.3 | 215.4 | ||||
Finance income | 23.9 | (20.1) | 3.8 | ||||
Finance costs | (67.4) | 12.7 | (54.7) | ||||
Net financing costs | (43.5) | (7.4) | (c) | (50.9) | |||
Profit before tax | 129.6 | 34.9 | 164.5 | ||||
Taxation | (24.2) | (7.9) | (d) | (32.1) | |||
Profit for the period | 105.4 | 27.0 | 132.4 | ||||
Weighted average shares outstanding in millions - basic | 163.1 | 163.1 | |||||
Basic earnings per share | 0.65 | 0.81 | |||||
Weighted average shares outstanding in millions - diluted | 163.2 | 163.2 | |||||
Diluted earnings per share | 0.65 | 0.81 | |||||
(a) | Represents share based payment expense including employer payroll taxes of €5.8 million and non-operating M&A transaction costs of €0.6 million. |
(b) | Represents exceptional items which management believes are non-recurring and do not have a continuing impact. See Note 6, Exceptional items, within 'Exhibit 99.2 - Condensed Consolidated Interim Financial Statements' for a detailed list of exceptional items. |
(c) | Represents elimination of €14.4 million of net gains on repricing of debt, a one-time €5.7 million gain from the reversal of an impairment of a short-term investment which was made with surplus cash as part of our cash management activities, €12.3 million of foreign exchange translation losses and €0.4 million of losses on derivatives. |
(d) | Represents tax impact of the above at the applicable tax rate for each adjustment, determined by the nature of the item and the jurisdiction in which it arises. |
Nomad Foods Limited
Reconciliation of Non-IFRS Financial Measures (continued)
The following table reconciles Adjusted EBITDA to the reported results of Nomad Foods for each period. Adjusted EBITDA (unaudited)
| |||||||
Three months ended | Six months ended | ||||||
€ in millions | June 30, 2025 | June 30, 2024 | June 30, 2025 | June 30, 2024 | |||
Profit for the period | 57.1 | 70.9 | 89.8 | 105.4 | |||
Taxation | 13.5 | 16.8 | 20.5 | 24.2 | |||
Net financing costs | 16.9 | 13.4 | 51.0 | 43.5 | |||
Depreciation & amortization | 26.3 | 23.2 | 50.3 | 46.3 | |||
Exceptional items (a) | 14.9 | 12.4 | 32.0 | 35.9 | |||
Other add-backs (b) | 0.6 | 2.7 | 5.8 | 6.4 | |||
Adjusted EBITDA | 129.3 | 139.4 | 249.4 | 261.7 | |||
Revenue | 746.9 | 753.1 | 1,507.0 | 1,536.8 | |||
Adjusted EBITDA margin (c) | 17.3 % | 18.5 % | 16.5 % | 17.0 % | |||
(a) | Adjustment to add back exceptional items. See Note 6, Exceptional items, within 'Exhibit 99.2 - Condensed Consolidated Interim Financial Statements' for a detailed list of exceptional items. |
(b) | Represents the elimination of share-based payment charges including employer payroll taxes for the three month period to June 30, 2025 of €0.4 million (2024: €2.4 million) and €5.3 million for the six months ended June 30, 2025 (2024: €5.8 million), as well as the elimination of non-operating M&A transaction costs for the three month period to June 30, 2025 of €0.2 million (2024: €0.3 million) and €0.5 million for the six months ended June 30, 2025 (2024: €0.6 million). We exclude these costs because we do not believe they are indicative of our normal operating costs, can vary significantly in amount and frequency, and are unrelated to our underlying operating performance. |
(c) | Adjusted EBITDA margin is calculated by dividing Adjusted EBITDA by Revenue. |
Nomad Foods Limited
Reconciliation of Non-IFRS Financial Measures (continued)
Reconciliation from reported to organic revenue growth/(decline)
The following table is a reconciliation of reported revenue growth to Organic Revenue Growth for the three and six month periods ended June 30, 2025.
Year on Year Growth - June 30, 2025 compared with June 30, 2024:
| |||
Three Months Ended | Six months ended | ||
YoY change | YoY change | ||
Reported Revenue Growth | (0.8) % | (1.9) % | |
Of which: | |||
Organic Revenue Growth | (1.1) % | (2.4) % | |
Translational FX (a) | 0.3 % | 0.5 % | |
Total | (0.8) % | (1.9) % | |
(a) | Translational FX is calculated by translating data of the current and comparative periods using a budget foreign exchange rate that is set once a year as part of the Company's internal annual forecast process. |
Forward-Looking Statements
Forward-Looking Statements and Disclaimers
Certain statements in this announcement are forward-looking statements which are based on the Company's expectations, intentions and projections regarding its future performance, anticipated events or trends and other matters that are not historical facts, including the Company's expectations regarding (i) its future operating and financial performance, including its 2025 guidance with respect to organic revenue growth, Adjusted EBITDA growth, adjusted free cash flow conversion, Adjusted EPS, and Adjusted EPS growth; (ii) disruptions in consumer behaviors, (iii) its growth initiatives, including with respect to its innovation and renovation initiatives, (iv) its ability to generate superior shareholder returns; (v) its bottom-line growth and cash generation; and (vi) its portfolio's ability to remain well positioned for consumer trends.
These statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements, including: (i) the Company's ability to effectively mitigate factors that negatively impact its supply of raw materials, including the conflict in Ukraine and climate-related factors beyond the Company's control; (ii) the Company's ability to successfully mitigate inflationary changes in the market; (iii) the Company's ability to successfully identify suitable acquisition targets and adequately evaluate the potential performance of such acquisition targets; (iv) the Company's ability to successfully implement its strategies (including its M&A strategy) and strategic initiatives and to recognize the anticipated benefits of such strategic initiatives; (v) innovations introduced to the markets and the Company's ability to accurately forecast the brands' performance; (vi) the Company's ability to effectively compete in its markets; (vii) changes in consumer preferences, such as meat substitutes, and the Company's failure to anticipate and respond to such changes or to successfully develop and renovate products; (viii) the effects of reputational damage from unsafe or poor quality food products; (ix) the risk that securities markets will react negatively to actions by the Company; (x) the adequacy of the Company's cash resources to achieve its anticipated growth agenda; (xi) increases in operating costs, including labor costs, and the Company's ability to manage its cost structure; (xii) fluctuations in the availability of food ingredients and packaging materials that the Company uses in its products; (xiii) the Company's ability to protect its brand names and trademarks; (xiv) the Company's ability to prevent, or remediate, any future cybersecurity incidents; (xv) loss of the Company's financial arrangements with respect to receivables factoring; (xvi) the loss of any of the Company's major customers or a decrease in demand for its products; (xvii) economic conditions that may affect the Company's future performance including exchange rate fluctuations; (xviii) the Company's ability to successfully interpret and respond to key industry trends and to realize the expected benefits of its responsive actions; (xix) the Company's failure to comply with, and liabilities related to, environmental, health and safety laws and regulations; (xx) changes in applicable laws or regulations; (xxi) the Company's ability to remediate any material weaknesses in its internal control over financial reporting; and (xxii) the other risks and uncertainties disclosed in the Company's public filings and any other public disclosures by the Company. Given these risks and uncertainties, prospective investors are cautioned not to place undue reliance on forward-looking statements. Forward-looking statements speak only as of the date of such statements and, except as required by applicable law, the Company does not undertake any obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.
No Offer or Solicitation
This release and referenced conference call is provided for informational purposes only and does not constitute an offer to sell, or an invitation to subscribe for, purchase or exchange, any securities or the solicitation of any vote or approval in any jurisdiction, nor shall there be any sale, issuance, exchange or transfer of the securities referred to in this press release in any jurisdiction in contravention of applicable law.
The release, publication or distribution of this announcement in certain jurisdictions may be restricted by law and therefore persons in such jurisdictions into which this announcement is released, published or distributed should inform themselves about and observe such restrictions.
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SOURCE Nomad Foods Limited