Strong Performance in 2024
The year of 2024 has seen the highest trading volumes in the history of Nomad Foods (NYSE: NOMD). The company achieved its ninth successive year of revenue growth and adjusted EBITDA.
Key Financial Highlights
- Revenue increased to €3.1 billion, up by 1.8%.
- The organic revenue grew by 1.0%, driven by higher sales volume.
- Adjusted EBITDA rose to €565 million, up by 5.6%.
- Adjusted EPS climbed to €1.78, an increase of 11%
- Adjusted free cash flow reached €292 million.
- The dividends and share buybacks given back to shareholders amounted to €208 million.
Fourth Quarter Results
- The revenue for this period reached €793 million; it was a rise of 4.3% from the figure recorded previously.
- This is as result of an organic revenue that expanded at a rate of 3.1%, with a growth in volume amounting to about 4.7%.
- This corresponds with an adjusted EBITDA which increased by upto17.6% resulting into the value amounting upto€137million.
- This was facilitated by a 31% increase in adjusted EPS to €0.42.
- The gross margin grew to 28.5%, an expansion of 120 basis points.
2025 Growth Outlook
The company has increased its 2025 earnings forecast.
The adjusted EPS is expected to range between €1.85 and €1.89.
There is a forecasted organic revenue growth rate of 1-3%.
Adjusted EBITDA will increase by 2-4%.
The company expects more than 90% of its free cash flow to be converted into adjusted ones.
CEO’s Statement
According to the CEO of Nomad Foods, Stéfan Descheemaeker, the performance of the company shows that it focuses on brand investment and operational excellence. “We are working on our strategy, so we are doing well in terms of market share. We have seen strong momentum in volumes and an uplift in consumer demand.”
Future Strategy
These include:
Strengthening innovation and product development;
Increasing core brands investments; and
Driving margin expansion through supply chain improvements.
Chairman’s Comments
Co-Chairman Noam Gottesman expressed optimism about the future prospects of the firm. “As we approach our tenth year as a public company, we believe that there is scope for further growth ahead. Our brand strength, corporate leadership, and execution distinguish us from others.”
Conclusion
Nomad Foods has had another record-breaking year supported by robust consumer demand as well as operating efficiencies. The organization remains optimistic about its sales and earnings prospects in 2025 onwards.
