Birds Eye parent Nomad Foods has posted a 10.2% year-on-year increase in revenue to €538 million in the second quarter of its financial year.
The frozen food giant reported organic revenue growth of 3.5%, comprising 4.0% growth in price and a 0.5% decline in volume/mix.
Nomad Foods’ chief executive, Stéfan Descheemaeker, said, "We delivered strong second-quarter results, which represent our tenth consecutive quarter of organic revenue growth.
"Performance continues to be fueled by investments that we have been making in our brands, people and capabilities, combined with an unwavering commitment to superior execution."
The company's adjusted EBITDA increased 10% to €98 million, including a benefit of €4.4 million related to IFRS 16.
The company's adjusted gross profit increased 4% to €160 million, with gross margin declining 170 basis points to 29.8%.
IFRS 16 is a new accounting standard for leases which requires certain operating leases to be capitalised on the balance sheet, effective 1 January 2019.
First-Half Results
The company's revenues increased 12.5% year on year to €1.16 billion in the first six months of its financial year ended 30 June.
Organic revenue grew by 2.1% during this period, with a 4.1% growth in price and a 2.0% decline in volume/mix.
Its adjusted gross profit increased 8% to €351 million, while the adjusted gross margin declined 120 basis points to 30.4% as pricing and promotional efficiencies were offset by the cost of goods inflation and acquisitions.
'Strategic Actions'
Nomad Foods' co-chairman and founder, Noam Gottesman, said, "The business is responding well to the strategic actions we have taken this year and has us on pace to achieve a third consecutive year of growth.
"Our ability to deliver consistent performance demonstrates the focus and commitment of the organisation, the quality of our portfolio and the potential of the frozen food category."
The company is developing several new product lines including its plant protein sub-brand, Green Cuisine, to meet the company's future growth plans.
Outlook
The frozen food company expects adjusted EBITDA of approximately €420 to €430 million in 2019, in line with its guidance for the financial fiscal.
For full-year 2019, the company has projected a low-single-digit percentage organic revenue growth.
© 2019 European Supermarket Magazine – your source for the latest retail news. Article by Dayeeta Das. Click subscribe to sign up to ESM: The European Supermarket Magazine.
