Nomad Foods, the owner of brands such as Birds Eye, Findus and Iglo, saw its reported revenues jump 26.7% to €760m during the third quarter to 30 September, reflecting organic growth of 7.2% and the contribution from its acquisition of Fortenova’s frozen food business last year.
The company executed double-digit price increases (10.6%) in the quarter to offset input cost pressures, although volumes declined by 3.4% as shoppers switched to cheaper brands and supermarket own-label.
Nomad stated that it expects to deliver further price increases in the fourth quarter to “re-build margins” in preparation for next year.
Over the last quarter, gross profit increased 9% to €221m after margin increased 110 basis points to 29.1%, driven by higher pricing offsetting surging raw material costs. Adjusted EBITDA increased 3% to €153m.
“I am pleased to report that Nomad Foods performed very well in the third quarter as our business delivered pricing recovery and a solid underlying performance,” said Stéfan Descheemaeker, Nomad Foods’ Chief Executive Officer.
He added: “As we recover our margins to longer-term levels and focus on maximizing our input cost coverage, we are positioning Nomad for sustainable growth into 2023 and beyond.”
