Thefrozen foods company saw reported revenue increase by 12.8%, to €2.9 billion for full year 2022, compared to the previous year.
Higher Material Costs
The company's reported profit for the period amounted to €250 million, while adjusted EBITDA increased 8% to €524 million.
In the fourth quarter, its adjusted gross margin decreased 80 basis points to 25.7%, driven by higher raw material costs and inflation. This was partially offset by higher pricing.
For full year 2023, the company expects adjusted EPS of €1.50 to €1.55 and has forecast mid-single-digit revenue growth and cash flow conversion in the range of 90% to 95%.
Challenging Consumer Backdrop
"Our 2022 results mark another record financial performance for Nomad Foods," said Noam Gottesman, Nomad Foods' co-chairman and founder. "We delivered Adjusted EPS at the top-end of our guidance range, grew organic sales against a challenging consumer backdrop, finished the successful integration of Fortenova's frozen food business, and opportunistically accessed the capital markets to extend our debt maturities until mid-2028 and 2029."
Gottesman added that the company enters the new year with "sales momentum, strong underlying cash generation, and financial flexibility providing the opportunity to prudently deploy capital to create value for shareholders.
"In addition to our ability to return capital to shareholders, we believe we have the right operational and financial plans in place to drive sustainable growth to compound value into the future."