Nomad Foods has said that frozen food has proven to be one of the 'most durable' consumer categories throughout the COVID-19 pandemic, as it reported a double digit increase in revenue in the second quarter.
Reported revenue at the business, which owns the Iglo and Birds Eye brands, among others, was up 11.4% to €599 million, it said.
'Robust Demand'
“We experienced continued robust demand throughout the second quarter, even as restrictions were relaxed across Europe beginning in early May," commented Stéfan Descheemaeker, the company's chief executive, adding that frozen food offers families "quick and nutritious" meal solutions at home, making the company well-positioned to capitalise on the lockdown situation.
"These are values which we believe will transcend beyond this acute period and appeal to a broader set of consumers in a post-COVID-19 world," he added.
Gross profit for the second quarter increased 13% to €181 million, the group said, while adjusted EBITDA increased 21% to €119 million, and adjusted EPS increased 26%.
For the half-year period, meanwhile, revenue was up 10.9% to €1.28 billon, while gross profit increased 8% to €380 million.
2020 Guidance
Nomad Foods said that it is raising its 2020 guidance, to include approximately €10 million of incremental strategic investments to fuel brand building activity, drive targeted retention of new consumers, and further accelerate the growth of Green Cuisine.
"As Europe’s leading frozen food company, we believe Nomad Foods is uniquely positioned with the strategy, resources and execution discipline to accelerate growth and drive sustained value creation for our stakeholders," Descheemaeker added.
© 2020 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: The European Supermarket Magazine
