Nomad Foods, the owner of brands such as Birds Eye, Findus, and Aunt Bessie’s, has posted disappointing first-quarter results after facing tough comparisons with strong demand during the pandemic and “difficult” economic conditions.
For the first three months of 2022, the group’s total revenue was up 3.6% to €733m. However, excluding acquisitions, organic revenues declined 4.5% after a 6.1% fall in volumes was only partially offset by a 1.6% increase in prices.
Adjusted gross profit slipped 4.8% to €205m after margins fell 250 basis points to 27.9% due to higher raw material costs and the inclusion of its Fortenova acquisition, which has gross margins below that of the rest of the business.
Adjusted EBITDA decreased 4.4% to €132m due to the above factors.
Chief Executive Stéfan Descheemaeker stated that the business had “performed well against strong pandemic comparisons and a difficult macro backdrop,” noting that the war in Ukraine had created “dislocations across our supply chain”.
He added: “We have rapidly adjusted to inflationary changes in the market and plan to recoup rising input costs through more price increases this year while remaining hedged on key inputs for 2022 and beyond.”
