FELTHAM, England - Nomad Foods Limited (NYSE:NOMD) reported a slight beat on adjusted earnings per share (EPS) for the fourth quarter, while revenue fell short of analyst expectations.
The Europe-based frozen foods company announced a Q4 adjusted EPS of €0.32, which was €0.01 higher than the analyst estimate of €0.31. However, revenue for the quarter came in at €761 million, not quite reaching the consensus estimate of €768.83 million.
For the full year 2024, Nomad Foods anticipates adjusted EPS to be between €1.75 and €1.80, aligning with the analyst consensus of €1.79. When adjusted for the current USD/EUR exchange rate as of February 17th, this forecast translates to an adjusted EPS range of $1.89 to $1.95. The company also expects to maintain a full year cash flow conversion rate between 90% and 95%. Additionally, organic net revenue growth is projected to be 3%-4%, spurred by positive volume and mix, with adjusted EBITDA expected to grow by 4%-6%.
The company's Q4 revenue saw a year-on-year (YoY) increase of 1.4%, with organic revenue growth of 1.9% mainly driven by a 7.5% increase in price, which was partially offset by a 5.6% decline in volume/mix.
Gross profit for the quarter rose by 8% to €208 million, with a gross margin improvement of 160 basis points to 27.3%, attributed to favorable pricing timing compared to the previous year. Adjusted operating expenses increased by 14% to €117 million due to heightened marketing and promotional investments.
Nomad Foods' CEO, Stéfan Descheemaeker, expressed pride in the team's performance, delivering record-high sales and adjusted EBITDA. He conveyed optimism for 2024, citing the rebound in frozen food consumption trends and the company's positioning to deliver organic growth through enhanced innovation and marketing efforts.
Nomad Foods' financial health appears resilient, with the company poised to capitalize on favorable market conditions and strategic initiatives aimed at bolstering its brand portfolio and operational efficiency.
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