Nomad Foods has reported a strong rise in sales for its fiscal second quarter, as double-digit price hikes offset a drop in volume sales.
For the three months to 30 June 2023, revenue grew by 6.9% to €745m (+8.6% on an organic basis) even as gross profit rose by 6.8% to €210m. However, operating profit for the quarter was down 15.6% to €95.7m, while pre-tax profit slumped by nearly 38% to €60.4m.
Nomad – which owns the Birds Eye, Findus, and Goodfella’s brands said results were helped by an 18% hike in prices, although the number of items sold slid by 9.4%. The food major said the price hikes were “solely to recover our higher raw material costs”, adding that its profit margins remained steady on a year-on-year basis.
Noam Gottesman, co-Chairman of Nomad, noted: “We delivered strong organic revenue growth while protecting our gross margin through pricing and cost discipline … Frozen food remains an excellent value for all consumers, and we see plenty of opportunities ahead. We are investing in sustainable long-term growth and remain focused on driving value for our shareholders.”
The results prompted Nomad to update its full-year forecast to adjusted earnings of €1.54 to €1.57 per share, from a previous forecast of €1.52 to €1.55 per share. It did not change its forecast for mid-single-digit organic revenue growth for the full year.
