Delivers record-high net sales and Adjusted
EBITDA; Full year Adjusted EPS of €1.61
Affirms strong 2024 financial guidance
FELTHAM, England, Feb. 29,
2024 /PRNewswire/ -- Nomad Foods Limited
(NYSE: NOMD) (the "Company" or "Nomad Foods"), today reported
financial results for the three and twelve-month periods ended
December 31, 2023.
The Company finished the year on excellent footing and given the
ongoing sequential improvement in its monthly trends, the business
is on track to return to positive volume growth in 2024.
Key operating highlights and financial performance for the
fourth quarter 2023, when compared to the fourth quarter 2022,
include:
- Reported revenue increased 1.4% to €761 million
- Organic revenue growth of 1.9%
- Adjusted EBITDA up 3.2% to €117 million
- Adjusted EPS of €0.32
Key operating highlights and financial performance for the
full year 2023, when compared to the full year 2022,
include:
- Reported revenue increased 3.6% to €3.0 billion
- Organic revenue growth of 4.9%
- Adjusted EBITDA increased 2.0% to €535 million
- Adjusted EPS of €1.61
- Adjusted free cash flow of €300 million, representing an
adjusted free cash flow conversation of 109%
2024 full year guidance
For the full year 2024, the Company expects organic net revenue
growth of 3%-4%, driven by positive volume/mix, adjusted EBITDA
growth of 4%-6%, and adjusted EPS of €1.75-€1.80, implying growth
of 9-12%. Based on USD/EUR exchange rate as of February 17th, this translates into 2024 adjusted
EPS of $1.89-$1.95. The Company expects full year cash flow
conversion in the range of 90% to 95%.
Management Comments
Stéfan Descheemaeker, Nomad Foods' Chief Executive Officer,
stated, "I am proud of the dedication and resilience of the entire
Nomad Foods team as we delivered another year of record-high sales
and adjusted EBITDA."
"Looking ahead to 2024, I am even more excited about our
continued momentum as we return to our normal operating cadence.
Frozen food consumption trends are rebounding, and we are
well-positioned to deliver attractive organic growth as we sharpen
our innovation focus and raise our marketing and brand investments.
We are elevating our productivity agenda and aggressively managing
costs, which, coupled with our effective capital allocation,
positions us to generate stronger bottom-line growth and superior
shareholder returns over the long-term."
Noam Gottesman, Nomad Foods'
Co-Chairman and Founder, commented, "We are delighted to report a
record financial performance ahead of our expectations, marking yet
another milestone in our continuous growth journey. We are
delivering on our commitments to drive long-term value creation –
sustainable organic growth, robust free cash flow generation and
disciplined capital allocation. As we enter 2024, we are
excited to be playing offence. Strong business momentum,
increasing investments in our brands, impactful innovation, and a
more normalized operating environment position us for success in
2024 and beyond."
Fourth Quarter of 2023 results compared to the Fourth
Quarter of 2022
- Revenue increased 1.4% to €761 million. Organic
revenue increase of 1.9% was driven by a 7.5% increase in price
offset by a 5.6% decline in volume/mix.
- Gross profit increased 8% to €208 million. Gross margin
increased 160 basis points to 27.3% driven by a favorable
comparison in the timing of pricing delivery in the prior
year.
- Adjusted operating expenses increased 14% to €117
million due to increased A&P investment in the business.
- Adjusted EBITDA increased by 3.2% to €117 million and
Adjusted Profit after tax decreased 9% to €52 million due to
higher interest charges.
- Adjusted EPS decreased 3.0% to €0.32, reflecting the
decrease in Adjusted Profit after tax due to higher interest
charges. Reported EPS decreased 29% to €0.15.
Year Ended 2023 results compared to the Year Ended
2022
- Revenue increased 3.6% to €3,045 million. Organic
revenue increase of 4.9% was driven by a 14.4% increase in
price offset by a 9.5% decline in volume/mix.
- Gross profit increased 5% to €859 million. Gross margin
increased 50 basis points to 28.2% linked to the successful
recovery of higher input costs through pricing and a benefit in the
cost of goods sold from the tail end of our cover positions from
2022.
- Adjusted operating expenses increased 10% to €419
million due to increased A&P investment in the business.
- Adjusted EBITDA increased 2% to €535 million and
Adjusted Profit after tax decreased 6% to €275 million, due
to higher interest charges.
- Adjusted EPS decreased 4.2% to €1.61, reflecting the
decrease in Adjusted Profit after tax due to higher interest
charges. Reported EPS decreased 21% to €1.13.
Conference Call and Webcast
The Company will host a conference call with members of the
executive management team to discuss these results today,
Thursday, February 29, 2023 at
1:30 p.m. GMT (8:30 a.m. Eastern Standard Time). To participate
on the live call, listeners in North
America may dial +1-877-451-6152 and international listeners
may dial +1-201-389-0879. Additionally, there will be a
presentation to accompany the conference call and the call is being
webcast. Both can be accessed at the Nomad Foods website at
www.nomadfoods.com under Investor Relations. A replay of the
conference call will be available on the Company website for two
weeks following the event and can be accessed by listeners in
North America by dialing
+1-844-512-2921 and by international listeners by dialing
+1-412-317-6671; the replay pin number is 13744170.
Enquiries
Investor Relations Contact
Amit Sharma, Head of Investor
Relations
amit.sharma@nomadfoods.com
Media Relations Contact
Jim Golden / Ed Hammond / Jack
Kelleher
Collected Strategies
nomad-cs@collectedstrategies.com
+1-617-3124937; +1-917-3466841
About Nomad Foods
Nomad Foods (NYSE: NOMD) is
Europe's leading frozen food
company. The Company's portfolio of iconic brands, which includes
Birds Eye, Findus, iglo, Ledo and
Frikom, have been a part of consumers' meals for
generations, standing for great tasting food that is convenient,
high quality and nutritious. Nomad Foods is headquartered in the
United Kingdom. Additional
information may be found at www.nomadfoods.com.
Non-IFRS Financial Information
Nomad Foods is presenting Adjusted and Organic financial
information, which is considered non-IFRS financial information,
for the three and twelve months ended December 31, 2023 and
for comparative purposes, the three and twelve months ended
December 31, 2022.
Adjusted financial information for the three and twelve months
ended December 31, 2023 and 2022 presented in this press
release reflects the historical reported financial statements of
Nomad Foods, adjusted primarily for share based payment expenses
and related employer payroll taxes, non-operating M&A related
costs, acquisition purchase price adjustments, exceptional items
and foreign currency exchange charges/gains.
Adjusted EBITDA is profit or loss for the period before
taxation, net financing costs, depreciation and amortization,
adjusted to exclude, when they occur, the impacts of exited
markets, acquisition purchase price adjustments and exceptional
items such as restructuring charges, goodwill and intangible asset
impairment charges and other unusual or non-recurring items. In
addition, we exclude other adjustments such as the impact of share
based payment expenses and related employer payroll taxes, and
non-operating M&A related costs, because we do not believe they
are indicative of our normal operating costs, can vary
significantly in amount and frequency, and are unrelated to our
underlying operating performance. The Company believes Adjusted
EBITDA provides important comparability of underlying operating
results, allowing investors and management to assess operating
performance on a consistent basis.
Adjusted EBITDA should not be considered as an alternative to
profit/(loss) for the period, determined in accordance with IFRS,
as an indicator of the Company's operating performance.
Adjusted Profit for the period is defined as profit for the
period excluding, when they occur, the impacts of exited markets,
acquisition purchase price adjustments and exceptional items such
as restructuring charges, goodwill and intangible asset impairment
charges, unissued preferred share dividends, as well as certain
other items considered unusual or non-recurring in nature. In
addition, we exclude other adjustments such as the impact of share
based payment expenses and related employer payroll taxes, and
non-operating M&A related costs, because we do not believe they
are indicative of our normal operating costs, can vary
significantly in amount and frequency, and are unrelated to our
underlying operating performance. The Company believes Adjusted
Profit after tax provides important comparability of underlying
operating results, allowing investors and management to assess
operating performance on a consistent basis.
Adjusted EPS is defined as diluted earnings per share excluding,
when they occur, the impacts of exited markets, acquisition
purchase price adjustments and exceptional items such as
restructuring charges, goodwill and intangible asset impairment
charges, as well as certain other items considered unusual or
non-recurring in nature. In addition, we exclude other adjustments
such as the impact of share based payment expenses and related
employer payroll taxes, and non-operating M&A related costs,
because we do not believe they are indicative of our normal
operating costs, can vary significantly in amount and frequency,
and are unrelated to our underlying operating performance. The
Company believes Adjusted EPS provides important comparability of
underlying operating results, allowing investors and management to
assess operating performance on a consistent basis.
Organic revenue growth/(decline) is an adjusted measurement of
our operating results. The comparison for the three and twelve
months ended December 31, 2023 and 2022 presented in this
press release takes into consideration only those activities that
were in effect during both time periods. Organic revenue
growth/(decline) reflects reported revenue adjusted for currency
translation and non-comparable trading items such as expansion,
acquisitions, disposals, closures, trading day impacts or any other
event that artificially impacts the comparability of our results
period over period.
Adjustments for currency translation are calculated by
translating data of the current and comparative periods using a
budget foreign exchange rate that is set once a year as part of the
Company's internal annual forecast process.
Adjusted and Organic non-IFRS financial information should be
read in conjunction with the unaudited financial statements of
Nomad Foods included in this press release as well as the
historical financial statements of the Company previously filed
with the SEC.
Nomad Foods believe its non-IFRS financial measures provide an
important additional measure with which to monitor and evaluate the
Company's ongoing financial results, as well as to reflect its
acquisitions. Nomad Foods' calculation of these financial measures
may be different from the calculations used by other companies and
comparability may therefore be limited. The Adjusted and Organic
financial information presented herein is based upon certain
assumptions that Nomad Foods believes to be reasonable and is
presented for informational purposes only and is not necessarily
indicative of any anticipated financial position or future results
of operations that the Company will experience. You should not
consider the Company's non-IFRS financial measures an alternative
or substitute for the Company's reported results and are cautioned
not to place undue reliance on these results and information as
they may not be representative of our actual or future results as a
Company.
Adjusted Free Cash Flow – Adjusted free cash flow is the amount
of cash generated from operating activities before cash flows
related to exceptional items (as described above), non-operating
M&A related costs and working capital movements on employer
taxes associated with share based payment awards, but after capital
expenditure (on property, plant and equipment and intangible
assets), net interest paid, proceeds/(payments) on settlement of
derivatives where hedge accounting is not applied and payments of
lease liabilities. Adjusted free cash flow reflects cash flows that
could be used for payment of dividends, repayment of debt or to
fund acquisitions or other strategic objectives.
Please see on pages 8 to 17, the non-IFRS reconciliation tables
attached hereto and the schedules accompanying this release for an
explanation and reconciliation of the Adjusted and Organic
financial information to the most directly comparable IFRS measure.
The Company is unable to reconcile, without unreasonable efforts,
Adjusted EPS guidance to the most directly comparable IFRS
measure.
|
Nomad Foods Limited
As Reported
|
|
Statements of Profit
or Loss (unaudited)
|
|
Three months ended
December 31, 2023 and December 31,
2022
|
|
|
Three months
ended
December 31, 2023
|
|
Three months
ended
December 31, 2022
|
|
€m
|
|
€m
|
|
Revenue
|
760.8
|
|
750.2
|
|
Cost of
sales
|
(553.1)
|
|
(557.5)
|
|
Gross
profit
|
207.7
|
|
192.7
|
|
Other operating
expenses
|
(122.6)
|
|
(103.6)
|
|
Exceptional
items
|
(18.4)
|
|
(23.5)
|
|
Operating
profit
|
66.7
|
|
65.6
|
|
Finance
income
|
6.2
|
|
2.7
|
|
Finance
costs
|
(26.7)
|
|
(22.0)
|
|
Net financing
costs
|
(20.5)
|
|
(19.3)
|
|
Profit before
tax
|
46.2
|
|
46.3
|
|
Taxation
|
(21.5)
|
|
(9.2)
|
|
Profit for the
period
|
24.7
|
|
37.1
|
|
|
|
|
|
Basic earnings per
share
|
|
|
|
|
Weighted average shares
outstanding in millions
|
163.8
|
|
174.2
|
|
Basic earnings per
share in €
|
0.15
|
|
0.21
|
|
Diluted earnings per
share
|
|
|
|
|
Weighted average shares
outstanding in millions
|
164.4
|
|
174.2
|
|
Diluted earnings per
share in €
|
0.15
|
|
0.21
|
|
Statements of Profit
or Loss (audited)
|
|
Twelve months ended
December 31, 2023 and December 31, 2022
|
|
|
Twelve months
ended December 31,
2023
|
|
Twelve months
ended December 31,
2022
|
|
€m
|
|
€m
|
|
Revenue
|
3,044.5
|
|
2,939.7
|
|
Cost of
sales
|
(2,185.8)
|
|
(2,124.4)
|
|
Gross
profit
|
858.7
|
|
815.3
|
|
Other operating
expenses
|
(445.8)
|
|
(391.2)
|
|
Exceptional
items
|
(72.5)
|
|
(48.7)
|
|
Operating
profit
|
340.4
|
|
375.4
|
|
Finance
income
|
22.8
|
|
12.1
|
|
Finance
costs
|
(109.6)
|
|
(66.5)
|
|
Net financing
costs
|
(86.8)
|
|
(54.4)
|
|
Profit before
tax
|
253.6
|
|
321.0
|
|
Taxation
|
(60.9)
|
|
(71.2)
|
|
Profit for the
period
|
192.7
|
|
249.8
|
|
|
|
|
|
Basic and diluted
earnings per share in €
|
1.13
|
|
1.43
|
|
Nomad Foods Limited
As Reported
|
|
Statements of
Financial Position (audited)
|
|
As at
December 31, 2023 and December 31, 2022
|
|
|
As at December 31,
2023
|
|
As at December 31,
2022
|
|
€m
|
|
€m
|
|
Non-current
assets
|
|
|
|
|
Goodwill
|
2,105.0
|
|
2,101.6
|
|
Intangibles
|
2,468.2
|
|
2,457.6
|
|
Property, plant and
equipment
|
563.7
|
|
542.9
|
|
Other non-current
assets
|
7.1
|
|
8.1
|
|
Derivative financial
instruments
|
0.7
|
|
0.2
|
|
Deferred tax
assets
|
106.9
|
|
100.4
|
|
Total non-current
assets
|
5,251.6
|
|
5,210.8
|
|
Current
assets
|
|
|
|
|
Cash and cash
equivalents
|
412.9
|
|
369.7
|
|
Inventories
|
446.4
|
|
457.1
|
|
Trade and other
receivables
|
263.4
|
|
261.7
|
|
Current tax
receivable
|
40.7
|
|
5.1
|
|
Indemnification
assets
|
0.5
|
|
1.8
|
|
Derivative financial
instruments
|
1.2
|
|
19.9
|
|
Total current
assets
|
1,165.1
|
|
1,115.3
|
|
Total
assets
|
6,416.7
|
|
6,326.1
|
|
Current
liabilities
|
|
|
|
|
Trade and other
payables
|
769.8
|
|
695.4
|
|
Current tax
payable
|
189.5
|
|
183.0
|
|
Provisions
|
35.1
|
|
36.1
|
|
Loans and
borrowings
|
21.4
|
|
22.6
|
|
Derivative financial
instruments
|
12.2
|
|
3.7
|
|
Total current
liabilities
|
1,028.0
|
|
940.8
|
|
Non-current
liabilities
|
|
|
|
|
Loans and
borrowings
|
2,113.7
|
|
2,142.3
|
|
Employee
benefits
|
158.3
|
|
132.1
|
|
Other non-current
liabilities
|
0.5
|
|
1.1
|
|
Provisions
|
1.4
|
|
1.3
|
|
Derivative financial
instruments
|
97.8
|
|
56.6
|
|
Deferred tax
liabilities
|
425.1
|
|
445.7
|
|
Total non-current
liabilities
|
2,796.8
|
|
2,779.1
|
|
Total
liabilities
|
3,824.8
|
|
3,719.9
|
|
Net
assets
|
2,591.9
|
|
2,606.2
|
|
Equity attributable
to equity holders
|
|
|
|
|
Share capital and
capital reserve
|
1,426.1
|
|
1,596.7
|
|
Share based
compensation reserve
|
31.4
|
|
13.8
|
|
Translation
reserve
|
101.0
|
|
89.3
|
|
Other
reserves
|
(24.6)
|
|
19.8
|
|
Retained
earnings
|
1,058.0
|
|
886.6
|
|
Total
equity
|
2,591.9
|
|
2,606.2
|
|
Nomad Foods Limited
As Reported
|
|
Statements of Cash
Flows (audited)
|
|
For the year ended
December 31, 2023 and the year ended December 31,
2022
|
|
|
For the Year
ended
December 31, 2023
|
|
For the Year
ended
December 31, 2022
|
|
€m
|
|
€m
|
|
Cash flows from
operating activities
|
|
|
|
|
Profit for the
period
|
192.7
|
|
249.8
|
|
Adjustments
for:
|
|
|
|
|
Exceptional
items
|
72.5
|
|
48.7
|
|
Share based payment
expense
|
24.1
|
|
8.1
|
|
Depreciation and
amortization
|
95.0
|
|
88.6
|
|
Loss on disposal and
impairment of property, plant and equipment
|
1.2
|
|
0.8
|
|
Net finance
costs
|
86.8
|
|
54.4
|
|
Taxation
|
60.9
|
|
71.2
|
|
Operating cash flow
before changes in working capital, provisions and
exceptional items
|
533.2
|
|
521.6
|
|
Decrease/(increase) in
inventories
|
18.8
|
|
(61.7)
|
|
Decrease/(increase) in
trade and other receivables
|
0.3
|
|
(38.3)
|
|
Increase in trade and
other payables
|
42.1
|
|
5.6
|
|
Decrease in employee
benefits and other provisions
|
(3.2)
|
|
(2.4)
|
|
Cash generated from
operations before tax and exceptional items
|
591.2
|
|
424.8
|
|
Payments relating to
exceptional items
|
(67.6)
|
|
(65.2)
|
|
Receipts relating to
exceptional items
|
—
|
|
24.4
|
|
Tax paid
|
(92.8)
|
|
(80.2)
|
|
Net cash generated
from operating activities
|
430.8
|
|
303.8
|
|
Cash flows from
investing activities
|
|
|
|
|
Business combinations,
net of cash acquired
|
—
|
|
0.4
|
|
Purchase of property,
plant and equipment and intangibles
|
(82.4)
|
|
(79.1)
|
|
Interest
received
|
5.3
|
|
—
|
|
Redemption of
investments
|
0.3
|
|
—
|
|
Cash used in
investing activities
|
(76.8)
|
|
(78.7)
|
|
Cash flows from
financing activities
|
|
|
|
|
Repurchase of ordinary
shares
|
(170.9)
|
|
(26.8)
|
|
Payments related to
shares withheld for tax
|
(7.1)
|
|
(2.9)
|
|
Issuance of new loan
principal
|
6.0
|
|
799.3
|
|
Repayment of loan
principal
|
(12.6)
|
|
(916.2)
|
|
Payment of lease
liabilities
|
(30.1)
|
|
(26.5)
|
|
Payment of financing
fees
|
(3.3)
|
|
(6.5)
|
|
Interest
paid
|
(93.9)
|
|
(54.2)
|
|
Payment of interest on
tax relating to legacy tax audits
|
(9.2)
|
|
—
|
|
(Payment)/proceeds
from settlements of derivatives
|
(0.4)
|
|
124.8
|
|
Other financing cash
flows
|
—
|
|
0.9
|
|
Net cash used in
financing activities
|
(321.5)
|
|
(108.1)
|
|
Net increase in cash
and cash equivalents
|
32.5
|
|
117.0
|
|
Cash and cash
equivalents at beginning of period
|
366.8
|
|
254.2
|
|
Effect of exchange
rate fluctuations
|
0.4
|
|
(4.4)
|
|
Cash and cash
equivalents at end of period*
|
399.7
|
|
366.8
|
|
|
*Cash and cash
equivalents includes bank overdrafts of €13.2 million for the year
ended December 31, 2023 (2022: €2.9 million).
|
|
Nomad Foods
Limited
|
|
Reconciliation
of Non-IFRS Financial Measures
|
|
(In € millions, except
per share data)
|
|
|
The following table
reconciles adjusted financial information for the three months
ended December 31, 2023 to the reported results of Nomad Foods
for such period.
|
|
|
Adjusted Statement
of Profit or Loss (unaudited)
|
|
Three Months Ended
December 31, 2023
|
|
|
€ in
millions, except per share data
|
As reported for
the
three months ended
December 31, 2023
|
|
Adjustments
|
|
|
|
As Adjusted for
the
three months ended
December 31, 2023
|
|
Revenue
|
760.8
|
|
—
|
|
|
|
760.8
|
|
Cost of
sales
|
(553.1)
|
|
—
|
|
|
|
(553.1)
|
|
Gross
profit
|
207.7
|
|
—
|
|
|
|
207.7
|
|
Other operating
expenses
|
(122.6)
|
|
5.3
|
|
(a)
|
|
(117.3)
|
|
Exceptional
items
|
(18.4)
|
|
18.4
|
|
(b)
|
|
—
|
|
Operating
profit
|
66.7
|
|
23.7
|
|
|
|
90.4
|
|
Finance
income
|
6.2
|
|
(5.2)
|
|
|
|
1.0
|
|
Finance
costs
|
(26.7)
|
|
0.4
|
|
|
|
(26.3)
|
|
Net financing
costs
|
(20.5)
|
|
(4.8)
|
|
(c)
|
|
(25.3)
|
|
Profit before
tax
|
46.2
|
|
18.9
|
|
|
|
65.1
|
|
Taxation
|
(21.5)
|
|
8.7
|
|
(d)
|
|
(12.8)
|
|
Profit for the
period
|
24.7
|
|
27.6
|
|
|
|
52.3
|
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding in millions - basic
|
163.8
|
|
—
|
|
|
|
163.8
|
|
Basic earnings per
share
|
0.15
|
|
|
|
|
|
0.32
|
|
Weighted average shares
outstanding in millions - diluted
|
164.4
|
|
—
|
|
|
|
164.4
|
|
Diluted earnings per
share
|
0.15
|
|
|
|
|
|
0.32
|
|
|
|
(a)
|
Share based payment
charge including employer payroll taxes of €5.1 million and a
non-operating M&A related credit of €0.2 million.
|
|
(b)
|
Exceptional items which
management believes will only recur over a limited number of
financial periods based in most cases on the completion of the
particular project or program, and do not have a continuing impact.
See table 'Adjusted EBITDA (unaudited) three months ended December
31, 2023' for a detailed list of exceptional items.
|
|
(c)
|
Elimination of €4.9
million of foreign exchange translation gains, €0.3 million of
interest income on legacy tax audits and €0.4 million of charges
relating to the repricing of debt.
|
|
(d)
|
Tax impact of the above
at the applicable tax rate for each adjustment, determined by the
nature of the item and the jurisdiction in which it
arises.
|
|
Nomad Foods
Limited
|
|
Reconciliation
of Non-IFRS Financial Measures
(continued)
|
|
|
The following table
reconciles Adjusted EBITDA for the three months ended
December 31, 2023 to the reported results of Nomad Foods for
such period.
|
|
|
Adjusted EBITDA
(unaudited)
|
|
Three Months Ended
December 31, 2023
|
|
|
€ in
millions
|
As reported for
the
three months ended
December 31, 2023
|
|
|
|
Profit for the
period
|
24.7
|
|
|
|
Taxation
|
21.5
|
|
|
|
Net financing
costs
|
20.5
|
|
|
|
Depreciation and
amortization
|
26.2
|
|
|
|
Exceptional
items:
|
|
|
|
|
Business
Transformation Program
|
16.6
|
|
(a)
|
|
Fortenova Group
integration costs
|
2.8
|
|
(b)
|
|
Settlement of legacy
matters
|
(1.0)
|
|
(c)
|
|
Other
Adjustments:
|
|
|
|
|
Other
add-backs
|
5.3
|
|
(d)
|
|
Adjusted EBITDA
(e)
|
116.6
|
|
|
|
|
|
(a)
|
Expenses associated
with the multi-year, enterprise-wide transformation and
optimization program. Expenses in the period consist of
restructuring, severance and transformational project costs,
including business technology transformation initiative costs and
related professional fees.
|
|
(b)
|
Expenses associated
with the integration of the Fortenova Group acquired on September
30, 2021.
|
|
(c)
|
Income and expenses
associated with the release of acquired provisions relating to
periods prior to acquisition by the Company and other gains or
charges associated with items that were originally recognized as
exceptional.
|
|
(d)
|
Represents the
elimination of share based payment charge including employer
payroll taxes of €5.1 million and elimination of a non-operating
M&A related credit of €0.2 million.
|
|
(e)
|
Adjusted EBITDA margin
of 15.3% for the three months ended December 31, 2023 is calculated
by dividing Adjusted EBITDA by Revenue of €760.8
million.
|
|
Nomad Foods
Limited
|
|
Reconciliation
of Non-IFRS Financial Measures
(continued)
|
|
|
The following table
reconciles Adjusted financial information for the three months
ended December 31, 2022 to the reported results of Nomad Foods for
such period.
|
|
|
Adjusted Statements
of Profit or Loss (unaudited)
|
|
Three Months Ended
December 31, 2022
|
|
|
€ in
millions, except per share data
|
As reported for
the
three months ended
December 31, 2022
|
|
Adjustments
|
|
|
|
As Adjusted for
the
three months ended
December 31, 2022
|
|
Revenue
|
750.2
|
|
—
|
|
|
|
750.2
|
|
Cost of
sales
|
(557.5)
|
|
—
|
|
|
|
(557.5)
|
|
Gross
profit
|
192.7
|
|
—
|
|
|
|
192.7
|
|
Other operating
expenses
|
(103.6)
|
|
1.1
|
|
(a)
|
|
(102.5)
|
|
Exceptional
items
|
(23.5)
|
|
23.5
|
|
(b)
|
|
—
|
|
Operating
profit
|
65.6
|
|
24.6
|
|
|
|
90.2
|
|
Finance
income
|
2.7
|
|
(2.3)
|
|
|
|
0.4
|
|
Finance
costs
|
(22.0)
|
|
3.1
|
|
|
|
(18.9)
|
|
Net financing
costs
|
(19.3)
|
|
0.8
|
|
(c)
|
|
(18.5)
|
|
Profit before
tax
|
46.3
|
|
25.4
|
|
|
|
71.7
|
|
Taxation
|
(9.2)
|
|
(4.8)
|
|
(d)
|
|
(14.0)
|
|
Profit for the
period
|
37.1
|
|
20.6
|
|
|
|
57.7
|
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding in millions - basic
|
174.2
|
|
—
|
|
|
|
174.2
|
|
Basic earnings per
share
|
0.21
|
|
|
|
|
|
0.33
|
|
Weighted average shares
outstanding in millions - diluted
|
174.2
|
|
—
|
|
|
|
174.2
|
|
Diluted earnings per
share
|
0.21
|
|
|
|
|
|
0.33
|
|
|
|
(a)
|
Share based payment
charge including employer payroll taxes of €1.2 million and a
non-operating M&A related credit of €0.1 million.
|
|
(b)
|
Exceptional items which
management believes will only recur over a limited number of
financial periods based in most cases on the completion of the
particular project or program, and do not have a continuing impact.
See table 'Adjusted EBITDA (unaudited) three months ended December
31, 2022' for a detailed list of exceptional items.
|
|
(c)
|
Elimination of a €2.3
million net gain from refinancing activities, €1.6 million of
foreign exchange translation losses and €1.5 million of foreign
exchange losses on derivatives.
|
|
(d)
|
Tax impact of the above
at the applicable tax rate for each adjustment, determined by the
nature of the item and the jurisdiction in which it
arises.
|
|
Nomad Foods
Limited
|
|
Reconciliation
of Non-IFRS Financial Measures
(continued)
|
|
|
The following table
reconciles Adjusted EBITDA for the three months ended December 31,
2022 to the reported results of Nomad Foods for such
period.
|
|
|
Adjusted EBITDA
(unaudited)
|
|
Three Months Ended
December 31, 2022
|
|
|
€ in
millions
|
As reported for
the
three months ended
December 31, 2022
|
|
|
|
Profit for the
period
|
37.1
|
|
|
|
Taxation
|
9.2
|
|
|
|
Net financing
costs
|
19.3
|
|
|
|
Depreciation and
amortization
|
22.8
|
|
|
|
Exceptional
items:
|
|
|
|
|
Findus Switzerland
integration costs
|
0.7
|
|
(a)
|
|
Impairment of
customer relationships
|
5.8
|
|
(b)
|
|
Information
Technology Transformation program
|
0.6
|
|
(c)
|
|
Business
Transformation Program
|
10.9
|
|
(d)
|
|
Distribution network
integration
|
1.6
|
|
(e)
|
|
Fortenova Group
integration costs
|
4.0
|
|
(f)
|
|
Factory
optimization
|
0.9
|
|
(g)
|
|
Settlement of legacy
matters
|
(1.0)
|
|
(h)
|
|
Other
Adjustments:
|
|
|
|
|
Other
add-backs
|
1.1
|
|
(i)
|
|
Adjusted EBITDA
(j)
|
113.0
|
|
|
|
|
|
(a)
|
Expenses associated
with the integration of the Findus Switzerland business acquired on
December 31, 2020.
|
|
(b)
|
Charge for the
impairment of our food service customer relationships in
Sweden.
|
|
(c)
|
Expenses associated
with the Information Technology Transformation program, which are
primarily professional fees.
|
|
(d)
|
Expenses associated
with the multi-year, enterprise-wide transformation and
optimization program. Expenses in the period consisted of
restructuring and transformational project costs, including
business technology transformation initiative costs and related
professional fees.
|
|
(e)
|
Expenses associated
with the restructuring of the sales operations in northern Italy
which was completed in 2023.
|
|
(f)
|
Expenses associated
with the integration of the Fortenova Group acquired on September
30, 2021.
|
|
(g)
|
Expenses associated
with a three-year factory optimization program, initiated in 2018,
to develop a new suite of standard manufacturing and supply chain
processes, that will provide a single network of optimized
factories. Due to delays in delivering the program, it was extended
for an additional year and completed in 2022.
|
|
(h)
|
Income and expenses
associated with the release of acquired provisions relating to
periods prior to acquisition by the Company and other gains or
charges associated with items that were originally recognized as
exceptional.
|
|
(i)
|
Represents the
elimination of share based payment charge including employer
payroll taxes of €1.2 million and elimination of a non-operating
M&A related credit of €0.1 million.
|
|
(j)
|
Adjusted EBITDA margin
of 15.1% for the three months ended December 31, 2022 is calculated
by dividing Adjusted EBITDA by Revenue of €750.2
million.
|
|
Nomad Foods
Limited
|
|
Reconciliation
of Non-IFRS Financial Measures
(continued)
|
|
|
The following table
reconciles adjusted financial information for the twelve months
ended December 31, 2023 to the reported results of Nomad Foods
for such period.
|
|
|
Adjusted Statement
of Profit or Loss (unaudited)
|
|
Twelve Months Ended
December 31, 2023
|
|
|
€ in
millions, except per share data
|
As reported for
the
twelve months
ended December 31,
2023
|
|
Adjustments
|
|
|
|
As Adjusted for
the
twelve months
ended December 31,
2023
|
|
Revenue
|
3,044.5
|
|
—
|
|
|
|
3,044.5
|
|
Cost of
sales
|
(2,185.8)
|
|
—
|
|
|
|
(2,185.8)
|
|
Gross
profit
|
858.7
|
|
—
|
|
|
|
858.7
|
|
Other operating
expenses
|
(445.8)
|
|
27.1
|
|
(a)
|
|
(418.7)
|
|
Exceptional
items
|
(72.5)
|
|
72.5
|
|
(b)
|
|
—
|
|
Operating
profit
|
340.4
|
|
99.6
|
|
|
|
440.0
|
|
Finance
income
|
22.8
|
|
(17.0)
|
|
|
|
5.8
|
|
Finance
costs
|
(109.6)
|
|
7.5
|
|
|
|
(102.1)
|
|
Net financing
costs
|
(86.8)
|
|
(9.5)
|
|
(c)
|
|
(96.3)
|
|
Profit before
tax
|
253.6
|
|
90.1
|
|
|
|
343.7
|
|
Taxation
|
(60.9)
|
|
(8.0)
|
|
(d)
|
|
(68.9)
|
|
Profit for the
period
|
192.7
|
|
82.1
|
|
|
|
274.8
|
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding in millions - basic
|
170.6
|
|
—
|
|
|
|
170.6
|
|
Basic earnings per
share
|
1.13
|
|
|
|
|
|
1.61
|
|
Weighted average shares
outstanding in millions - diluted
|
171.2
|
|
—
|
|
|
|
171.2
|
|
Diluted earnings per
share
|
1.13
|
|
|
|
|
|
1.61
|
|
|
|
(a)
|
Share based payment
charge including employer payroll taxes of €26.1 million and
non-operating M&A related costs of €1.0 million.
|
|
(b)
|
Exceptional items which
management believes will only recur over a limited number of
financial periods based in most cases on the completion of the
particular project or program, and do not have a continuing impact.
See table 'Adjusted EBITDA (unaudited) twelve months ended December
31, 2023' for a detailed list of exceptional items.
|
|
(c)
|
Elimination of €16.7
million of net gains on repricing of debt, €3.5 million of interest
cost on tax relating to legacy tax audits, €3.0 million of foreign
exchange translation losses, €1.0 million of losses on derivatives
and a €0.3 million gain from the reversal of an impairment loss on
a short-term investment.
|
|
(d)
|
Tax impact of the above
at the applicable tax rate for each adjustment, determined by the
nature of the item and the jurisdiction in which it
arises.
|
|
Nomad Foods
Limited
|
|
Reconciliation
of Non-IFRS Financial Measures
(continued)
|
|
|
The following table
reconciles Adjusted EBITDA for the twelve months ended
December 31, 2023 to the reported results of Nomad Foods for
such period:
|
|
|
Adjusted EBITDA
(unaudited)
|
|
Twelve Months Ended
December 31, 2023
|
|
|
€ in
millions
|
For the twelve
months ended
December 31, 2023
|
|
|
|
Profit for the
period
|
192.7
|
|
|
|
Taxation
|
60.9
|
|
|
|
Net financing
costs
|
86.8
|
|
|
|
Depreciation and
amortization
|
95.0
|
|
|
|
Exceptional
items:
|
|
|
|
|
Information
Technology Transformation program
|
0.6
|
|
(a)
|
|
Business
Transformation Program
|
68.4
|
|
(b)
|
|
Fortenova Group
integration costs
|
4.3
|
|
(c)
|
|
Settlement of legacy
matters
|
(0.8)
|
|
(d)
|
|
Other
Adjustments:
|
|
|
|
|
Other
add-backs
|
27.1
|
|
(e)
|
|
Adjusted EBITDA
(f)
|
535.0
|
|
|
|
|
|
(a)
|
Expenses associated
with the Information Technology Transformation program, which are
primarily professional fees. The program was completed in
2023.
|
|
(b)
|
Expenses associated
with the multi-year, enterprise-wide transformation and
optimization program which began in 2020. Expenses in the period
consist of restructuring, severance and transformational project
costs, including business technology transformation initiative
costs and related professional fees.
|
|
(c)
|
Expenses associated
with the integration of the Fortenova Group acquired on September
30, 2021.
|
|
(d)
|
Income and expenses
associated with the release of acquired provisions relating to
periods prior to acquisition by the Company and other gains or
charges associated with items that were originally recognized as
exceptional.
|
|
(e)
|
Represents the
elimination of share based payment charge including employer
payroll taxes of €26.1 million and elimination of non-operating
M&A related costs of €1.0 million.
|
|
(f)
|
Adjusted EBITDA margin
of 17.6% for the twelve months ended December 31, 2023 is
calculated by dividing Adjusted EBITDA by Revenue of €3,044.5
million.
|
|
Nomad Foods
Limited
|
|
Reconciliation
of Non-IFRS Financial Measures
(continued)
|
|
|
The following table
reconciles Adjusted financial information for the twelve months
ended December 31, 2022 to the reported results of Nomad Foods
for such period.
|
|
|
Adjusted Statements
of Profit or Loss (unaudited)
|
|
Twelve Months Ended
December 31, 2022
|
|
|
€ in
millions, except per share data
|
As reported for
the
twelve months ended
December 31, 2022
|
|
Adjustments
|
|
|
|
As Adjusted for
the
twelve months ended
December 31, 2022
|
|
Revenue
|
2,939.7
|
|
—
|
|
|
|
2,939.7
|
|
Cost of
sales
|
(2,124.4)
|
|
—
|
|
|
|
(2,124.4)
|
|
Gross
profit
|
815.3
|
|
—
|
|
|
|
815.3
|
|
Other operating
expenses
|
(391.2)
|
|
11.7
|
|
(a)
|
|
(379.5)
|
|
Exceptional
items
|
(48.7)
|
|
48.7
|
|
(b)
|
|
—
|
|
Operating
profit
|
375.4
|
|
60.4
|
|
|
|
435.8
|
|
Finance
income
|
12.1
|
|
(11.5)
|
|
|
|
0.6
|
|
Finance
costs
|
(66.5)
|
|
—
|
|
|
|
(66.5)
|
|
Net financing
costs
|
(54.4)
|
|
(11.5)
|
|
(c)
|
|
(65.9)
|
|
Profit before
tax
|
321.0
|
|
48.9
|
|
|
|
369.9
|
|
Taxation
|
(71.2)
|
|
(5.3)
|
|
(d)
|
|
(76.5)
|
|
Profit for the
period
|
249.8
|
|
43.6
|
|
|
|
293.4
|
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding in millions - basic
|
174.3
|
|
—
|
|
|
|
174.3
|
|
Basic earnings per
share
|
1.43
|
|
|
|
|
|
1.68
|
|
Weighted average shares
outstanding in millions - diluted
|
174.3
|
|
—
|
|
|
|
174.3
|
|
Diluted earnings per
share
|
1.43
|
|
|
|
|
|
1.68
|
|
|
|
(a)
|
Share based payment
charge including employer payroll taxes of €8.6 million and
non-operating M&A related costs of €3.1 million.
|
|
(b)
|
Exceptional items which
management believes will only recur over a limited number of
financial periods based in most cases on the completion of the
particular project or program, and do not have a continuing impact.
See table 'Adjusted EBITDA (unaudited) twelve months ended December
31, 2022' for a detailed list of exceptional items.
|
|
(c)
|
Elimination of €2.3
million of net gain recognized as part of refinancing activities
and €9.2 million of foreign exchange translation gains.
|
|
(d)
|
Tax impact of the above
at the applicable tax rate for each adjustment, determined by the
nature of the item and the jurisdiction in which it
arises.
|
|
Nomad Foods
Limited
|
|
Reconciliation
of Non-IFRS Financial Measures
(continued)
|
|
|
The following table
reconciles Adjusted EBITDA for the twelve months ended
December 31, 2022 to the reported results of Nomad Foods for
such period:
|
|
|
Adjusted EBITDA
(unaudited)
|
|
Twelve Months Ended
December 31, 2022
|
|
|
€ in
millions
|
For the twelve
months ended
December 31, 2022
|
|
|
|
Profit for the
period
|
249.8
|
|
|
|
Taxation
|
71.2
|
|
|
|
Net financing
costs
|
54.4
|
|
|
|
Depreciation and
amortization
|
88.6
|
|
|
|
Exceptional
items:
|
|
|
|
|
Findus Switzerland
integration costs
|
8.2
|
|
(a)
|
|
Impairment of
customer relationships
|
5.8
|
|
(b)
|
|
Information
Technology Transformation program
|
4.4
|
|
(c)
|
|
Business
Transformation Program
|
37.0
|
|
(d)
|
|
Distribution network
integration
|
2.2
|
|
(e)
|
|
Fortenova Group
integration costs
|
9.5
|
|
(f)
|
|
Factory
optimization
|
3.5
|
|
(g)
|
|
Settlement of legacy
matters
|
(28.9)
|
|
(h)
|
|
Release of
indemnification assets
|
7.0
|
|
(i)
|
|
Other
Adjustments:
|
|
|
|
|
Other
add-backs
|
11.7
|
|
(j)
|
|
Adjusted EBITDA
(k)
|
524.4
|
|
|
|
|
|
(a)
|
Expenses associated
with the integration of the Findus Switzerland business acquired on
December 31, 2020.
|
|
(b)
|
Charge for the
impairment of our food service customer relationships in
Sweden.
|
|
(c)
|
Expenses associated
with the Information Technology Transformation program, which are
primarily professional fees.
|
|
(d)
|
Expenses associated
with the multi-year, enterprise-wide transformation and
optimization program which began in 2020. Expenses in the period
consist of restructuring and transformational project costs,
including business technology transformation initiative costs and
related professional fees.
|
|
(e)
|
Expenses associated
with the restructuring of the sales operations in northern Italy
which completed in 2023.
|
|
(f)
|
Expenses associated
with the integration of the Fortenova Group acquired on September
30, 2021.
|
|
(g)
|
Expenses associated
with a three-year factory optimization program, initiated in 2018,
to develop a new suite of standard manufacturing and supply chain
processes, that will provide a single network of optimized
factories. Due to delays in delivering the program, it was extended
for an additional year and completed in 2022.
|
|
(h)
|
Income and expenses
associated with the release of acquired provisions relating to
periods prior to acquisition by the Company and other gains or
charges associated with items that were originally recognized as
exceptional.
|
|
(i)
|
Charge for the release
of shares held in escrow as part of the consideration on the
acquisition of the Findus Group.
|
|
(j)
|
Represents the
elimination of share based payment charge including employer
payroll taxes of €8.6 million and elimination of non-operating
M&A related costs of €3.1 million.
|
|
(k)
|
Adjusted EBITDA margin
of 17.8% for the twelve months ended December 31, 2022 is
calculated by dividing Adjusted EBITDA by Revenue of €2,939.7
million.
|
|
Nomad Foods
Limited
|
|
Adjusted Financial
Information (continued)
|
|
|
Appendix 1:
Reconciliation from reported to organic revenue
growth/(decline)
|
|
|
Year on Year Growth
- December 31, 2023 compared with December 31,
2022:
|
|
|
Three Months
Ended
December 31, 2023
|
|
Twelve Months
Ended
December 31, 2023
|
|
|
|
YoY
change
|
|
YoY
change
|
|
|
|
Reported Revenue
Growth
|
1.4 %
|
|
3.6 %
|
|
|
|
|
|
|
|
|
|
Of which:
|
|
|
|
|
|
|
Organic Revenue
Growth/(Decline)
|
1.9 %
|
|
4.9 %
|
|
|
|
Translational FX
(a)
|
(0.5) %
|
|
(1.3) %
|
|
|
|
Total
|
1.4 %
|
|
3.6 %
|
|
|
|
|
|
(a)
|
Translational FX is
calculated by translating data of the current and comparative
periods using a budget foreign exchange rate that is set once a
year as part of the Company's internal annual forecast
process.
|
|
Nomad Foods
Limited
|
|
Adjusted Financial
Information (continued)
|
|
|
Appendix 2:
Reconciliation from reported net cash flows from operating
activities to Adjusted free cash flow
|
|
|
The following table is
a reconciliation of reported net cash flows from operating
activities to Adjusted free cash flow for the year ended December
31, 2023.
|
|
|
Reconciliation of
net cash flows from operating activities to Adjusted free cash flow
(unaudited)
|
|
Twelve Months Ended
December 31, 2023
|
|
|
€ in
millions
|
Twelve months
ended
December 31, 2023
|
|
Net Cash Flows From
Operating Activities
|
430.8
|
|
Add back:
|
|
|
Cash flows relating to
exceptional items (a)
|
67.6
|
|
Employer taxes related
to share based payments (b)
|
2.0
|
|
Non-operating M&A
costs (c)
|
1.0
|
|
Deduct:
|
|
|
Capital expenditure
(d)
|
(82.4)
|
|
Net interest
paid
|
(88.6)
|
|
Other financing cash
flows
|
(0.4)
|
|
Payment of lease
liabilities (e)
|
(30.1)
|
|
Adjusted free cash
flow
|
299.9
|
|
|
|
Adjusted profit for
the period
|
274.8
|
|
Adjusted free cash
flow as % adjusted profit for the period
|
109 %
|
|
|
|
(a)
|
Adjustment to add back
cash flows related to exceptional items which are not considered to
be indicative of our ongoing operating cash flows.
|
|
(b)
|
Adjustment to add back
working capital movements related to employer taxes related to
share based payments which are not considered to be indicative of
our ongoing operating cash flows.
|
|
(c)
|
Adjustment to add back
cash flows related to non-operating M&A costs which are not
considered to be indicative of our ongoing operating cash
flows.
|
|
(d)
|
Defined as the sum of
property, plant and equipment and intangible assets purchased in
the year, which are considered part of the underlying business cash
flows.
|
|
(e)
|
These lease liabilities
are included in Net Cash Flows from Financing Activities. We
believe these payments are part of the underlying business cash
flows and should be reflected in Adjusted free cash
flow.
|
Forward-Looking Statements
Forward-Looking Statements
and Disclaimers
Certain statements in this announcement are forward-looking
statements which are based on the Company's expectations,
intentions and projections regarding its future performance,
anticipated events or trends and other matters that are not
historical facts, including the Company's expectations regarding
(i) its future operating and financial performance, including its
reiterated guidance with respect to organic net revenue growth,
Adjusted EBITDA growth, free cash flow conversion, Adjusted EPS,
and Adjusted EPS growth for 2024; (ii) its ability to generate
stronger bottom-line growth and superior shareholder returns; and
(iii) its success in 2024 and beyond.
These statements are not guarantees of future performance and
are subject to known and unknown risks, uncertainties and other
factors that could cause actual results to differ materially from
those expressed or implied by such forward-looking statements,
including: (i) the Company's ability to effectively mitigate
factors that negatively impact its supply of raw materials,
including the conflict in Ukraine;
(ii) the Company's ability to successfully mitigate inflationary
changes in the market; (iii) the Company's ability to successfully
identify suitable acquisition targets and adequately evaluate the
potential performance of such acquisition targets; (iv) the
Company's ability to successfully implement its strategies
(including its M&A strategy) and strategic initiatives and to
recognize the anticipated benefits of such strategic initiatives;
(v) the Company's ability to accurately predict the performance of
its Green Cuisine brand and the Findus Switzerland and Fortenova's
frozen food businesses' and their impact on the Company's growth;
(vi) the Company's ability to effectively compete in its markets,
including the ability of Green Cuisine to effectively compete in
Continental Europe; (vii) changes in consumer preferences, such as
meat substitutes, and the Company's failure to anticipate and
respond to such changes or to successfully develop and renovate
products; (viii) the effects of reputational damage from unsafe or
poor quality food products; (ix) the risk that securities markets
will react negatively to actions by the Company; (x) the adequacy
of the Company's cash resources to achieve its anticipated growth
agenda; (xi) increases in operating costs, including labor costs,
and the Company's ability to manage its cost structure; (xii)
fluctuations in the availability of food ingredients and packaging
materials that the Company uses in its products; (xiii) the
Company's ability to protect its brand names and trademarks; (xiv)
the Company's ability to prevent, or remediate, any future
cybersecurity incidents; (xv) loss of the Company's financial
arrangements with respect to receivables factoring; (xvi) the loss
of any of the Company's major customers or a decrease in demand for
its products; (xvii) economic conditions that may affect the
Company's future performance including exchange rate fluctuations;
(xviii) the Company's ability to successfully interpret and respond
to key industry trends and to realize the expected benefits of its
responsive actions; (xix) the Company's failure to comply with, and
liabilities related to, environmental, health and safety laws and
regulations; (xx) changes in applicable laws or regulations; and
(xxi) the other risks and uncertainties disclosed in the Company's
public filings and any other public disclosures by the Company.
Given these risks and uncertainties, prospective investors are
cautioned not to place undue reliance on forward-looking
statements. Forward-looking statements speak only as of the date of
such statements and, except as required by applicable law, the
Company does not undertake any obligation to update or revise
publicly any forward-looking statements, whether as a result of new
information, future events or otherwise.
No Offer or Solicitation
This release and referenced conference call is provided for
informational purposes only and does not constitute an offer to
sell, or an invitation to subscribe for, purchase or exchange,
any securities or the solicitation of any vote or approval in any
jurisdiction, nor shall there be any sale, issuance, exchange or
transfer of the securities referred to in this press release in any
jurisdiction in contravention of applicable law.
The release, publication or distribution of this announcement in
certain jurisdictions may be restricted by law and therefore
persons in such jurisdictions into which this announcement is
released, published or distributed should inform themselves about
and observe such restrictions.
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content:https://www.prnewswire.com/news-releases/nomad-foods-reports-fourth-quarter-and-full-year-2023-financial-results-302075039.html
SOURCE Nomad Foods Limited