Nomad Foods, the owner of brands such as Birds Eye, Findus, and Aunt Bessie’s, has continued its recent strong performance as consumers kept their freezers stocked up during the pandemic.
Frozen food sales have outperformed the overall grocery market in recent months and Nomad saw its revenue increase 11.4% to €599m during its second quarter to 30 June. Organic revenues rose even more, up 12.3% after a 9.9% growth in volume and a 2.4% increase in prices.
The group’s gross profit climbed 13% to €181m after margin increased 50 basis points to 30.3% as reduced promotions, fixed cost leverage and favourable mix offset cost of goods inflation.
Adjusted EBITDA jumped 21% to €119m, aided by the above factors and a double-digit decline in advertising expenses as the group halted marketing campaigns during the crisis.
Over the full first half period, Nomad’s adjusted EBITDA rose 8% to €239m on revenue up 10.9% to €1.28bn (+9.8% organic).
Given the recent strong trading, the company has raised its guidance for the full year. It now expects adjusted EBITDA to be in excess of €460m with organic revenue growth in the “high-single-digit” percentage range versus the previous “mid-single-digit” forecast.
Nomad’s updated guidance includes approximately €10m of “incremental strategic investment” aimed at fuelling brand building activity, retaining new customers attracted during the pandemic, and accelerating the growth of its new meat-free brand Green Cuisine.
Stéfan Descheemaeker, Nomad Foods’ Chief Executive Officer, commented: “We experienced continued robust demand throughout the second quarter, even as restrictions were relaxed across Europe beginning in early May.
“Frozen food has proven to be one of the most durable consumer categories throughout the COVID-19 pandemic, a testament to its role in offering families quick and nutritious meal solutions at home. These are values which we believe will transcend beyond this acute period and appeal to a broader set of consumers in a post-COVID-19 world.”
