Nomad Foods Ltd has reported an increase in revenue of 1.5% to €539 million for the first quarter of 2018.
The UK-based frozen foods company, which owns brands including Birds Eye and Goodfella’s, also saw its adjusted EBITDA rise to €103 million, an increase of 16% on the previous year.
Organic revenue rose by 2.9%, and reported gross profit increased by 10%, to €171 million. Gross margin expanded 240 basis points to 31.8%, due to positive mix and improved pricing and promotional efficiency.
Commenting on the results, Stéfan Descheemaeker, Nomad Foods’ chief executive, said, “2018 is off to a strong start highlighted by first quarter organic revenue growth of 2.9% and adjusted EPS growth of 40%.
“These results, which reinforce the sustainability of our growth model, are attributable to the team's focus and execution towards our goals of driving frozen food category growth and increasing our market share. Based on our year-to-date performance and visibility into the balance of the year, we now expect 2018 guidance at the high end of our prior expectations.”
Reflecting on the positive performance, Nomad Foods has raised its 2018 guidance and it now expects an adjusted EBITDA of €55 to €360 million, and adjusted EPS of approximately €1.10 to €1.13 per share.
Its reviewed full-year guidance continues to assume organic revenue growth at a low-single-digit percentage range.
Noam Gottesman, Nomad Foods’ co-chairman and founder, said, “It is a good time to be in the frozen food business. The category is growing across Western Europe and, in many cases, is out-pacing other packaged food categories. Our strong first quarter performance and plans for the remainder of 2018 put us on track to deliver another year of impressive financial results."
In March, Nomad Foods said that it experienced an ‘outstanding year’ as its revenue increased by 1.5% to€1.95 billion in the full-year 2017. Shortly after the group announced that it completed the acquisition of Green Isle Foods for £200 million in cash.
© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Aidan O'Sullivan. Click subscribe to sign up to ESM: European Supermarket Magazine.