Nomad Foods, the owner of brands such as Birds Eye, Aunt Bessie’s, and Goodfella’s, has delivered a period of sales growth despite taking another significant hit to volumes after more price hikes.
During its fourth quarter to 31 December 2023, total revenue increased 4% to €761m. However, organic revenue growth was only 1.9% after a 7.5% increase in prices was offset by a 5.6% decline in volumes as demand for its brands from cash-strapped shoppers weakened.
Adjusted EBITDA increased by just 2% to €117m after operating expenses rose 14% due to the company upping its advertising and promotional activity.
For the full year, Nomad Foods’ revenue rose 6% to €3.05bn. An organic revenue increase of 4.9% was driven by a 14.4% increase in prices offset by a 9.5% decline in volumes. Adjusted EBITDA was up 2% to €535m.
Stéfan Descheemaeker, the company’s Chief Executive, praised the resilience of the business amid the tough trading conditions.
He added: “Looking ahead to 2024, I am even more excited about our continued momentum as we return to our normal operating cadence. Frozen food consumption trends are rebounding, and we are well-positioned to deliver attractive organic growth as we sharpen our innovation focus and raise our marketing and brand investments.
“We are elevating our productivity agenda and aggressively managing costs, which, coupled with our effective capital allocation, positions us to generate stronger bottom-line growth and superior shareholder returns over the long-term.”
