Looking for a stock that has been consistently beating earnings estimates and might be well positioned to keep the streak alive in its next quarterly report? Nomad Foods (NOMD) , which belongs to the Zacks Food - Miscellaneous industry, could be a great candidate to consider.When looking at the last two reports, this frozen foods company has recorded a strong streak of surpassing earnings estimates. The company has topped estimates by 11.26%, on average, in the last two quarters.For the last reported quarte ...

In my initial review of Nomad Foods (NYSE: NOMD ) in November of last year, I rated the largest frozen food company in Europe a buy given the attractive valuation of just 9x earnings back then. Over thePhilipp is a seasoned value investor with nearly 20 years of experience in the field. He takes a global approach to investment opportunities, seeking out undervalued companies that offer a significant margin of safety, leading to attractive dividend yields and returns. While he does not limit his investments ...

Long-only investment, evaluating companies from an operational, buy-and-hold perspective.Quipus Capital does not focus on market-driven dynamics and future price action. Instead, our articles focus on operational aspects, understanding the long-term earnings power of companies, the competitive dynamics of the industries where they participate, and buying companies that we would like to hold independently of how the price moves in the future. Most QC calls will be holds, and that is by design. Only a very sm ...

Group 1 - Nomad Foods Limited announced the filing of its annual report on Form 20-F, including audited financial statements for the fiscal year ended December 31, 2024 [1] - The annual report can be accessed through the company's website and the SEC's website [1] - Shareholders can request a hard copy of the annual report free of charge by contacting the company [2] Group 2 - Nomad Foods is recognized as Europe's leading frozen food company, with a portfolio of iconic brands including Birds Eye, Findus, iglo, Ledo, and Frikom [3] - The company emphasizes its commitment to providing great tasting, convenient, high-quality, and nutritious food [3] - Nomad Foods is headquartered in the United Kingdom [3]

Financial Data and Key Metrics Changes - For Q4 2024, reported net revenues increased by 4.3% to EUR 793 million, with organic growth at 3.1%, marking the 10th consecutive quarter of organic growth [35][38] - Gross margin rose to 29.6%, nearly reaching the pre-COVID peak of 30% achieved in 2019, with a 9% increase in gross profit [39][40] - Adjusted EBITDA increased by 17.6%, while adjusted profit rose by 28% year-on-year, and adjusted EPS increased by 31% to EUR 0.42 [37][38] Business Line Data and Key Metrics Changes - The company achieved market share growth in key categories, with organic sales for growth platforms rising by 16% in 2024 and 40% in Q4 [22] - Retail sales for prepared poultry in Italy rose 98% year-on-year, with market share growing from 8% in Q4 2023 to 50% in Q4 2024 [25] - In Germany, retail sales for prepared poultry rose 35% year-on-year, reaching a market share of 2.7% [27] Market Data and Key Metrics Changes - The company reported a 420 basis point increase in market share for potatoes in Belgium, becoming the category leader [28] - In France, market share grew by 550 basis points to 16.1% in the quarter, while in the UK, market share increased by 70 basis points to 8.9% [29] - The overall consumer environment in Western Europe is gradually improving, with private label losing market share [118] Company Strategy and Development Direction - The company is focused on maintaining its core portfolio while exploring potential acquisitions in subcategories where synergies exist [90] - The strategy includes significant investments in advertising, innovation, and renovation to drive sustainable growth [30][31] - The company aims to continue its streak of top and bottom line growth for the 10th consecutive year in 2025 [121] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving another year of organic growth in 2025, despite a challenging operating environment [10][15] - The company anticipates a modest decline in organic sales in Q1 2025 due to timing dynamics, but expects the underlying trend of improvement to hold throughout the year [49][51] - Management noted that inflation is easing, and while it remains higher than pre-crisis levels, it is not as severe as in 2022 [117] Other Important Information - The company returned EUR 208 million to shareholders in 2024, a more than 20% increase from EUR 171 million in 2023 [43][44] - The Board of Directors approved a 13% increase in the first quarter 2025 cash dividend to $0.07 per share [48] Q&A Session Summary Question: What is the basis for the 1% to 3% organic sales growth forecast for 2025? - The forecast is based on low inflation and expected category growth, with market share performance contributing to the growth [54] Question: How do you expect the price/mix piece to evolve in Q1? - There is an expectation of pressure on price, but volume remains important for driving efficiencies [62] Question: How much of the innovation will focus on existing must-win battles versus new growth platforms? - The majority of innovation will focus on must-win battles, which represent around 50% of the business [66] Question: What is the status of the enterprise-wide transformation program? - The company is taking a slower approach to implementation, focusing on efficiency gains and simplification [99] Question: How do you view the impact of potential tariffs from the US? - The company does not foresee a major impact from tariffs, as it does not export to the US and has diversified sourcing strategies [110][112] Question: What is the current consumer environment in Western Europe? - The environment is gradually improving, with private label losing market share, indicating a return to branded products [118]

Core Insights - Nomad Foods reported quarterly earnings of $0.45 per share, exceeding the Zacks Consensus Estimate of $0.39 per share, and showing an increase from $0.34 per share a year ago, resulting in an earnings surprise of 15.38% [1] - The company achieved revenues of $846.39 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 2.71% and up from $819.22 million year-over-year [2] - Nomad Foods shares have increased approximately 12.6% since the beginning of the year, outperforming the S&P 500's gain of 1.2% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.40 on revenues of $815.29 million, and for the current fiscal year, it is $1.92 on revenues of $3.3 billion [7] - The estimate revisions trend for Nomad Foods is currently unfavorable, leading to a Zacks Rank 4 (Sell), indicating expected underperformance in the near future [6] Industry Context - The Food - Miscellaneous industry, to which Nomad Foods belongs, is currently ranked in the bottom 24% of over 250 Zacks industries, suggesting potential challenges ahead [8] - General Mills, a competitor in the same industry, is expected to report a quarterly earnings decline of 18% year-over-year, with revenues projected at $4.98 billion, down 2.3% from the previous year [9][10]

Market Competition and Consumer Trends - The company operates in a highly competitive market, facing pressures from both private label products and established branded producers, which could adversely affect sales and market share [49]. - Sales are subject to changing consumer preferences, including demands for convenience, value for money, and sustainably sourced products, which could impact profitability if not anticipated correctly [53]. - Changes in consumer purchasing habits due to economic conditions could negatively impact demand for branded and premium food products [65]. - The company is responding to changing consumer shopping habits by investing in technology platforms and partnerships with retailers to enhance e-commerce strategies [219]. Supply Chain and Raw Material Risks - The ongoing conflict between Ukraine and Russia may lead to increased costs and reduced availability of key raw materials, such as fish and wheat, affecting the company's supply chain [58]. - The company is diversifying its supply sources for raw materials to mitigate risks associated with geopolitical conflicts and potential sanctions [59]. - The availability and price of key raw materials, such as fish and vegetables, are subject to volatility due to geopolitical conflicts and supply chain disruptions [67]. - Increased distribution costs and potential disruptions in transportation services could adversely affect the company's ability to supply products [79]. - Disruptions in the supply chain due to severe weather or natural disasters could adversely affect raw material availability and production schedules [99]. Financial Performance and Cost Pressures - The company faces risks related to inflationary pressures on costs, which may limit its ability to increase prices [44]. - The company faces significant inflationary pressures on costs for materials, energy, and logistics, which may negatively impact profit margins [63]. - The company may struggle to pass through price increases to customers, leading to potential profit margin erosion [63]. - Labor shortages and increased labor costs could adversely affect the company's operations and financial results [44]. - The company faces risks associated with pension obligations, which may increase due to lower than expected returns on investments [145]. Internal Controls and Compliance - The company has identified material weaknesses in internal controls over financial reporting, which could affect the accuracy and timeliness of financial statements [48]. - Material weaknesses in internal control over financial reporting were identified, particularly related to the implementation of the new SAP S/4 HANA ERP system [156]. - Compliance with extensive regulations in key markets is critical, as failure to do so could result in fines, product recalls, or asset seizures [120]. - The company is subject to international tax compliance risks, with pending tax assessments that could impact cash flow [96]. Strategic Growth and Acquisitions - The company may face significant competition for acquisition opportunities, which could impact its growth strategy [44]. - The company aims to expand its geographic footprint through strategic acquisitions, targeting growth opportunities in European and North American markets [214]. - The company completed several strategic acquisitions, including Goodfella's and Aunt Bessie's, enhancing its market position in the frozen food sector with leading market shares in the UK and Ireland [218]. - The acquisition of Findus Switzerland expanded the company's geographic reach into a new market, providing a platform for growth with a leading frozen food brand [218]. Market Position and Brand Strategy - Approximately 69% of the company's revenue was generated in its Key Markets during the year ended December 31, 2024 [64]. - The top 10 retail customers accounted for 30% of the company's revenue for the year ended December 31, 2024 [73]. - The company maintains leading brand recognition in various European markets, leveraging its iconic brand assets to drive consumer trust [208]. - The company's commercial strategy focuses on core products, brand equity, and innovative in-store marketing to drive sales and shopper traffic [229]. Innovation and Product Development - Future results depend on the successful development and launch of new products, with the risk of inventory write-offs if new products fail to appeal to consumers [57]. - The company is committed to innovation, focusing on sustainable product development and healthier meal choices, with a significant portion of sales coming from these products [213]. - The company launched new product innovations in 2024, including the Chicken Shop range and a Non Fry Coating system for fish products, aimed at enhancing flavor and texture [225]. Operational Challenges and Risks - The company is exposed to macroeconomic trends that could impact operations in key markets, including fluctuations in exchange rates and energy prices [44]. - The company is vulnerable to risks associated with food safety and product quality, which could damage its reputation and sales [87]. - The integration of acquired operations may lead to unforeseen operating difficulties and require significant financial resources, potentially impacting ongoing development and expansion [111]. - The impact of pandemics on operational and financial performance is uncertain and could exacerbate existing risks, including supply chain pressures and labor shortages [170]. Shareholder and Regulatory Considerations - The company is subject to different U.S. securities laws and NYSE governance standards as a foreign private issuer, which may afford less protection to shareholders [181]. - Shareholder rights under British Virgin Islands law differ from those under U.S. law, potentially providing fewer protections for shareholders [186]. - The company may lose its foreign private issuer status in the future, resulting in higher regulatory and compliance costs [183]. - Related party transactions with founders may arise in the future, potentially leading to conflicts of interest [184].

Core Insights - Nomad Foods achieved its ninth consecutive year of record-high net sales and Adjusted EBITDA, with a reported revenue increase of 1.8% to €3.1 billion for the full year 2024 [2][6][16] - The company increased its full year 2025 Adjusted EPS guidance to €1.85-€1.89, reflecting a growth of 4-6% compared to the previous outlook [1][3] - Nomad Foods distributed €208 million to shareholders in 2024 through dividends and share repurchases, demonstrating a strong commitment to shareholder returns [2][16] Financial Performance - For Q4 2024, reported revenue increased by 4.3% to €793 million, with organic revenue growth of 3.1% driven by a volume growth of 4.7% [6][7] - Adjusted EBITDA for Q4 2024 rose by 17.6% to €137 million, while Adjusted EPS increased by 31% to €0.42 [6][7] - For the full year 2024, Adjusted EBITDA increased by 5.6% to €565 million, and Adjusted EPS rose by 11% to €1.78 [6][16] Operational Highlights - The company reported a gross profit increase of 7% to €918 million for the full year 2024, with a gross margin improvement of 140 basis points to 29.6% [16] - Nomad Foods maintained a strong cash flow conversion rate of 90% or greater, with adjusted free cash flow of €292 million [3][6] - The company plans to continue investing in its products and brands, with expectations of organic revenue growth of 1%-3% and Adjusted EBITDA growth of 2%-4% for 2025 [3][4] Management Commentary - CEO Stéfan Descheemaeker emphasized the impact of focused brand investments and operational excellence, highlighting the company's strong volume momentum and market share gains [4] - Co-Chairman Noam Gottesman expressed optimism about the growth potential of Nomad Foods, noting its portfolio of iconic brands and high-performing team [4]

WOKING, England, Feb. 24, 2025 /PRNewswire/ -- Nomad Foods Limited (NYSE: NOMD) today announced it will report results for the fourth quarter ended December 31, 2024 before New York Stock Exchange market open on Monday, March 3, 2025. A conference call with members of the executive management team will be held to discuss the results with additional comments and details.The conference call is scheduled to begin at 8:30 AM Eastern Daylight Time on Monday, March 3, 2025. To participate on the live call listene ...

Core Viewpoint - Nomad Foods Limited has announced a 13% increase in its quarterly cash dividend, reflecting strong cash flow and confidence in its long-term strategy [1][2]. Company Overview - Nomad Foods is Europe's leading frozen food company, with a portfolio that includes well-known brands such as Birds Eye, Findus, iglo, Ledo, and Frikom [3]. Financial Performance - The declared quarterly cash dividend for 2025 is $0.17 per share, marking the first increase since the initiation of the dividend in January 2024 [1]. - The company expects to enter its tenth consecutive year of top- and bottom-line growth, indicating sustained financial performance [2].