Frozen food firm Nomad Foods has posted a 2% year-on-year growth in revenue to €1.3 billion in the first half of its financial year.
Organic revenue declined by 1.2% due to a 1.1% decline in volume/mix and a 0.1% decline in price.
The company's adjusted gross profit increased 4.9% to €399 million, while adjusted gross margin increased 90 basis points to 30.6%.
Adjusted EBITDA increased 9% to €261 million and adjusted profit increased 15% to €155 million.
Second-Quarter Performance
In the second quarter, the Birds Eye parent saw a 1% year-on-year growth in gross profit, to €184 million.
Adjusted EBITDA increased 4%, to €123 million, during the quarter, and adjusted profit increased 6% to €72 million.
Revenue for the period decreased 1% to €596 million, while organic revenue declined by 4.5%, following a 4.4% decline in volume/mix and a 0.1% decline in price.
Nomad Foods reported organic revenue growth of 1.8% in the first quarter, comprised of a 1.9% increase in volume/mix and a 0.1% decrease in price.
'Strong Results'
Commenting on the quarterly performance, the CEO of Nomad Foods, Stéfan Descheemaeker, stated, "We achieved strong results during the second quarter notwithstanding easing of restrictions across Europe and the anniversary of peak COVID-related demand.
"Results were driven by improving market share trends, a recovering foodservice business, accretive allocation of capital, and successfully navigating a dynamic inflationary backdrop. With more than half of the year behind us, we remain confident in achieving our 2021 guidance."
Noam Gottesman, co-chairman and founder of Nomad Foods, said, "Second quarter results clearly demonstrate the power of our value creation model as the resilient base business performance was complemented by accretion from the Findus Switzerland acquisition and the effect of last year's share repurchases."
Outlook
Nomad Foods expects revenue and adjusted EBITDA to grow approximately in the range of 3%-5%. Adjusted EPS is expected to be approximately €1.50 to €1.55, representing 11%-15% growth.
For the full year, the company has projected organic revenue growth of approximately 1%-2%.
Nomad Foods noted that the guidance does not yet include the pending acquisition of Fortenova's Frozen Food Business Group, which is expected to close at the end of the third quarter of 2021.
