Nomad Foods, the owner of brands such as Birds Eye, Aunt Bessie’s, and Goodfella’s, has revised its revenue and profit forecasts for 2025 after posting weaker-than-expected first-half results.
Alongside the group’s second-quarter results, the group’s Chief Executive Stéfan Descheemaeker said 2025 was proving to be “more challenging than expected”.
Nomad Foods is now expecting its full-year organic revenue to be flat to -2% versus a prior expectation of a 0%-2% change. Meanwhile, its annual adjusted EBITDA is forecast to decline by 3% to 7%, well down from its previous forecast of flat to up 2%.
The company noted that the lower guidance will also “enhance its ability to absorb other unforeseen disruptions” in the latter half of the year.
Descheemaeker commented: “Record-setting warm weather across many Western European markets has disrupted consumer behaviour, leading to changes in retailer merchandising strategies and contributing to volume declines, particularly within our savoury frozen categories.
“While this is unfortunate, we also recognise 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.”
In the second quarter to 30 June, Nomad’s revenue fell by 0.8% to €747m, with an organic decline of 1.1%. The company attributed the decline to a volume decrease of 1% and a price/mix decline of 0.1%. Adjusted EBITDA slid 7.2% to €129m, while operating profit fell from €101.1m to €87.5m.
In the first half of the year as a whole, Nomad’s revenue decreased by 1.9% to €1.51bn. Adjusted EBITDA was down by 4.7% to €249m, and operating profit fell 6.8% at €161.3m.
The group noted that adjusted gross margin decreased 110 basis points to 27.8%, due to supply chain inflation headwinds, partially offset by supply chain productivity and the lapping of inventory revaluation headwinds in the prior year. Meanwhile, overhead cost reductions were more than offset by an increase in advertising and promotion expenses.
Noam Gottesman, Nomad Foods’ Co-Chairman and Founder, remained upbeat, saying: “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 stabilise 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.”
