Nomad Foods has posted a 10.5% year-on-year growth in revenue to €683 million in the first quarter ended 31 March driven by an ‘unprecedented’ demand for frozen food in wake of the COVID-19 pandemic.
Stéfan Descheemaeker, Nomad Foods’ chief executive officer, stated, “This change in consumer behaviour, which began in early March, has continued into the second quarter with in-home consumption the most meaningful driver.
“Our organisation has collectively risen to the challenge by ensuring the continuous supply of our products and brands throughout this crisis while prioritising the health and safety of our employees."
The Birds Eye parent has raised its 2020 guidance and expects an adjusted EBITDA of approximately €450 to €460 million compared to its previous estimate of approximately €440 to €445 million.
The company’s organic revenue increased by 7.7% in the first quarter, comprising 1.4% growth in price and a 6.3% increase in volume/mix.
Co-chairman and founder of Nomad Foods, Sir Martin E. Franklin, added, “Nomad Foods has distinguished itself as a leader in the packaged foods sector with 13 consecutive quarters of organic revenue growth.
“Further, as a frozen food pure-play, our company is uniquely positioned to service the extraordinary demand for food at home throughout this crisis.”
Gross profit increased 4% to €199 million in the quarter, while gross margin declined 180 basis points to 29.1% as pricing, promotional efficiencies and mix were more than offset by the cost of goods inflation, the company added.
The frozen food giant saw a 14% increase in adjusted operating expenses to €97 million, following double-digit growth in advertising and promotion as well as indirect expenses.
Adjusted EBITDA decreased 2% to €120 million, while adjusted profit after tax decreased 5% to €68 million.
© 2020 European Supermarket Magazine – your source for the latest retail news. Article by Dayeeta Das. Click subscribe to sign up to ESM: European Supermarket Magazine.