Market Competition and Consumer Trends - The company operates in a highly competitive market, facing pressures from both established brands and private label products, which could adversely affect sales and margins [48]. - Consumer preferences are shifting towards convenience, sustainability, and health-conscious options, which the company must adapt to in order to maintain sales and profitability [52]. - High inflation is influencing consumer behavior, with a potential shift towards discount retailers, which could negatively impact sales of branded products [50]. - The company aims to introduce new products and improve existing lines to counteract obsolescence and drive overall sales growth [55]. Supply Chain and Geopolitical Risks - The ongoing conflict between Ukraine and Russia may impact the availability and cost of key raw materials, including fish and wheat, potentially affecting production and pricing [56]. - The company is diversifying its supply sources for raw materials to mitigate risks associated with geopolitical conflicts and supply chain disruptions [57]. - The ongoing conflict in Ukraine is causing volatility in the global supply chain, affecting prices and availability of key raw materials such as fish, poultry, and energy [70]. - The company is vulnerable to fluctuations in the availability and price of food ingredients and packaging materials, which historically represent a significant portion of its cost of sales [69]. - Distribution costs have historically fluctuated significantly, and increases could reduce profits, especially if transportation services are disrupted [81]. Financial and Operational Risks - The company has identified a material weakness in internal control over financial reporting, which could affect the accuracy and timeliness of financial reporting [47]. - The company faces significant inflationary pressures, which may not be fully passed on to customers, potentially impacting profit margins [61]. - The company is exposed to macroeconomic trends that could adversely impact operations in key markets, including labor shortages and rising costs [43]. - The company faces risks related to compliance with various regulatory schemes, including European privacy and data protection regulations [47]. - There is a risk of increased distribution costs and disruptions in transportation services, which could affect the company's operations [43]. Customer and Market Dynamics - Approximately 69% of the company's revenue was generated from Key Markets in the year ended December 31, 2023 [65]. - The top 10 retail customers accounted for 32% of the company's revenue for the year ended December 31, 2023 [75]. - The company may face challenges in negotiating favorable terms with large retail customers, which could adversely affect margins and sales [75]. - The food service channel represented approximately 8% of total sales for the year ended December 31, 2023, primarily in the Nordics, Croatia, and Spain [210]. Regulatory and Compliance Issues - The company faces potential adverse effects on its image and financial condition due to changes in relationships with third-party suppliers [87]. - The company is subject to extensive regulations governing food production, which could result in fines or operational disruptions if not complied with [124]. - Non-compliance with hygiene regulations could lead to temporary shutdowns or product recalls [126]. - The company is subject to GDPR compliance, which imposes fines up to €20 million or 4% of annual global revenue for breaches [133]. Sustainability and Environmental Concerns - The company has been included in the Dow Jones Sustainability Europe Index as the third highest-ranking company in Europe within the food product industry group, achieving a maximum score of 100% in Health and Nutrition for five consecutive years [231]. - The sustainability strategy focuses on better sourcing, better nutrition, and better operations, with clear time-bound targets aligned with the UN's Sustainable Development Goals [230][233]. - Increased pressure to reduce waste and improve recyclability could impact sales and operational costs [130]. - Failure to address sustainability risks could adversely affect the company's financial condition and market position [111]. Labor and Employment Challenges - As of December 31, 2023, the company employed approximately 7,894 employees, with 62% working in manufacturing operations [106]. - The company faces potential labor shortages and increased turnover rates, which could lead to production delays and higher costs [107]. - Competition for skilled employees may result in higher labor costs due to inflationary pressures and minimum wage requirements [108]. Financial Management and Debt - The company faces risks related to its indebtedness, including the ability to meet debt service obligations and potential increases in debt service due to future acquisitions [134][136]. - Variable rate indebtedness exposes the company to interest rate risk, which could significantly increase interest expenses if market rates rise [138]. - Dividend payments and share repurchase programs may impact cash flows and the ability to meet debt obligations [141]. - The company has a mixture of partially funded and unfunded pension plans, which could increase cash obligations if investment returns are lower than expected [145][147]. Brand and Market Position - The company holds an 18% market share in the European savory frozen food market, which generated €22 billion in retail sales value in 2023 [186][185]. - The company’s brands, such as Birds Eye and Findus, are well-established with strong consumer recognition, contributing to demand for its products [191]. - Core products, which include fish, vegetables, meals, and poultry, account for 68% of the company's branded retail sales [197]. - The company benefits from established relationships with retail customers, providing access to diversified distribution channels [190]. Technology and Innovation - The company is responding to the shift towards digital and mobile technologies by investing in technology platforms and partnering with retailers, particularly in the hard discounter channel, which has seen significant growth in the UK and Southern Europe [201]. - The company’s R&D efforts focus on innovation, with a commitment to sustainable product development and healthier meal choices [195]. Internal Controls and Cybersecurity - The company recognizes that maintaining effective internal controls over financial reporting is crucial, and failure to do so could result in inaccuracies in financial statements and loss of investor confidence [159]. - Cybersecurity risks pose a threat to the company's information technology systems, potentially impacting operations and financial performance [151]. - The company has not experienced a significant cybersecurity breach that materially impacted its business, but acknowledges the increasing risks associated with cyber-attacks [154].

Financial Data and Key Metrics Changes - Company reported sales grew by 1% and 1.6% on an organic basis, exceeding original expectations [10][28] - Adjusted EBITDA was €140 million with an adjusted EBITDA margin of 18.3% [36] - Adjusted EPS came in at €0.43 per share, translating to USD 0.45 per share at current spot rates [28][36] - For the first nine months, organic sales grew by 6%, maintaining guidance for mid-single-digit growth for the full year [11][38] - Gross margin was reported at 28.4%, supported by pricing initiatives and cost control [10][63] Business Line Data and Key Metrics Changes - The company has seen a strong performance in its fish products, which account for nearly 40% of sales, with new advertising initiatives launched [31][60] - Ice cream sales in the Adriatic region reached record levels, driven by good weather and effective marketing [15] - The company has increased its advertising and promotion (A&P) spending to 5% of sales from 3.5% last year to drive growth [8][9] Market Data and Key Metrics Changes - The frozen food category is showing signs of recovery, with volume growth in 12 out of 16 markets tracked [60] - In the U.K., the company launched a back-to-school campaign that reached over 90% of households [32] - The company noted that private label price gaps have stabilized, allowing for competitive positioning [44] Company Strategy and Development Direction - The primary strategic objective is to return to volume growth, with expectations for improvement in Q4 and into 2024 [25][27] - The company is focusing on enhancing in-store execution and promotional activities to drive demand [26][59] - A new $500 million share repurchase program has been approved, alongside plans for a regular quarterly dividend starting in early 2024 [13][58] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges faced in Q3 due to retail disputes but expressed optimism for recovery in Q4 and beyond [41][45] - The company is closely monitoring the impact of weight loss drugs on food industry volumes but believes it is well-positioned due to its product portfolio [6][7] - Management expects to see a balanced mix of price and volume as A&P investments take hold in the market [66] Other Important Information - The company generated €125 million of adjusted free cash flow in the first nine months, with a conversion ratio of 56% [37] - Working capital decreased by €151 million, contributing to improved cash flow performance [37][64] - The company is maintaining its adjusted free cash flow guidance of approximately €250 million for the year [66] Q&A Session Summary Question: What is the impact of retail disputes on Q3 revenues? - Management indicated that around 2% of revenues were "lost" due to negotiations, but they expect positive impacts in Q4 and Q1 [42][41] Question: How is the company addressing private label competition? - Management noted that private label price gaps have stabilized, allowing the company to operate competitively while focusing on promotions [44] Question: What is the expected timeline for volume recovery? - Management expressed confidence in regaining market share and volume growth by Q1 of the following year [45][91] Question: How does the company view the frozen food category's performance? - Management highlighted that the frozen food category is showing recovery, with volume growth in most key markets [60][52] Question: What are the expectations for gross margin in Q4? - Management projected that gross margins would remain stable, supported by pricing and cost discipline [18][54]

Nomad Foods Disclaimer Certain statements and matters discussed in this Presentation may constitute forward-looking statements. Forward-looking statements are statements that are not historical facts and may be identified by words such as "aim", "anticipate", "believe", "continue", "estimate", "expect", "intend", "may", "should", "strategy", "will" and words of similar meaning, including all matters that are not historical facts. This Presentation includes forward-looking statements about the Company's: (i) ...

Anthony Bucalo - Head of Investor Relations Stefan Descheemaeker - Chief Executive Officer Samy Zekhout - Chief Financial Officer Jason English - Goldman Sachs John Baumgartner - Mizuho Securities Peter Saleh - BTIG Simon Negin - UBS Steve Powers - Deutsche Bank Rob Dickerson - Jefferies Jon Tanwanteng - CJS Securities Company Participants Good morning and welcome to the Nomad Foods' First Quarter 2023 Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions] After toda ...

Financial Data and Key Metrics Changes - In 2022, the company achieved record sales, adjusted EBITDA, and adjusted EPS for the sixth consecutive year, with adjusted EPS of $1.68, reflecting a 60% increase since 2016 [3][15] - Full-year adjusted EBITDA grew 8% to $524 million, with an adjusted EBITDA margin of 17.8%, down 90 basis points from the previous year [17][35] - Fourth quarter adjusted EPS was flat at $0.33, translating to $0.35 at current US dollar spot rates [17][35] Business Line Data and Key Metrics Changes - The company reported a 7.7% organic revenue growth in Q4, with total revenues increasing by 6.6% to $750 million [35] - Full-year organic revenues grew 1.8%, driven by price increases that offset volume declines [35] - Adjusted gross profit for Q4 grew 3% to $193 million, while adjusted COGS increased by 7.7% to $558 million due to raw material inflation [17][35] Market Data and Key Metrics Changes - The company experienced mid-single-digit declines in full-year volume and mix, but value share increased by about 0.5 points for the year [15][35] - The company expects market share to improve sequentially in 2023 due to innovation efforts and increased advertising and promotion investments [35] Company Strategy and Development Direction - The company plans to strengthen its brand through increased investment in advertising and promotion, particularly as market conditions normalize [4][33] - The strategy includes broadening affordable choices to address inflationary pressures on consumers while managing supply chain efficiency [4][33] - The company aims to maximize portfolio value through prudent pricing and improved revenue growth management strategies [33] Management's Comments on Operating Environment and Future Outlook - Management indicated that 2023 is expected to be a transitional year towards a more normalized consumer environment, with plans in place to meet financial objectives and maintain growth [4][5] - The company anticipates lower inflation levels in 2023 compared to 2022, but still plans to take pricing actions to protect its cost structure [21][39] - Management expressed confidence in achieving 2025 targets, emphasizing operational strength and investment plans funded by cost savings [53] Other Important Information - The company successfully refinanced its debt portfolio, extending maturities to mid-2028 and 2029, which provides greater flexibility for cash allocation strategies [5][36] - Adjusted free cash flow for the year was $189 million, with a cash flow conversion of 65%, impacted by working capital increases [17][36] Q&A Session Summary Question: What drove the decline in gross margins year-over-year? - Management noted that while pricing was in line with expectations, the margins were impacted by higher raw material costs, which they are addressing through pricing strategies [8][19] Question: What is the cost inflation estimate for 2023? - Management indicated that inflation is expected to be lower than in 2022, but pricing actions will still be necessary to protect the cost structure [21][39] Question: What are the expectations for Fortenova in 2023? - Management confirmed that Fortenova's revenue growth should be accretive to overall company guidance, with ongoing integration efforts expected to accelerate [22] Question: How is the brand investment strategy evolving? - Management emphasized a balanced approach, focusing on both advertising investments and competitive pricing to maintain market share against private labels [45][47] Question: How does the company view its volume compared to pre-COVID levels? - Management reported a slight decline in volume compared to pre-COVID but noted an increase in consumer reach, indicating a stronger consumer base [51] Question: How confident is the company in achieving its 2025 targets? - Management expressed confidence in meeting 2025 targets, highlighting operational strength and a commitment to delivering superior shareholder returns [53]

Nomad Foods Reports Fourth Quarter and Full Year 2022 Financial Results Full year Adjusted EPS of €1.68 Completes 6th consecutive year of record annual reported revenue, Adjusted EBITDA and Adjusted EPS 2023 Adjusted EPS guidance range of €1.50 to €1.55 FELTHAM, England - February 23, 2023 - Nomad Foods Limited (NYSE: NOMD) (the "Company" or "Nomad Foods"), today reported financial results for the three and twelve-month periods ended December 31, 2022. Key operating highlights and financial performance for ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 20-F (Mark One) Commission file number 001-37669 Nomad Foods Limited (Exact Name of Registrant as Specified in Its Charter) British Virgin Islands (Jurisdiction of Incorporation or Organization) No. 1 New Square Bedfont Lakes Business Park Feltham, Middlesex TW14 8HA, United Kingdom (Address of Principal Executive Offices) Samy Zekhout No. 1 New Square Bedfont Lakes Business Park Feltham, Middlesex TW14 8HA Telephone:+(44) 208 918 ...

Nomad Foods Limited. (NYSE:NOMD) Q3 2022 Earnings Conference Call November 9, 2022 8:30 AM ET Company Participants Anthony Bucalo - Head of Investor Relations Stefan Descheemaeker - Chief Executive Officer Samy Zekhout - Chief Financial Officer Conference Call Participants Andrew Lazar - Barclays Jason English - Goldman Sachs Cody Ross - UBS John Baumgartner - Mizuho Peter Saleh - BTIG Robert Moskow - Cr??dit Suisse Jon Tanwanteng - CJS Securities Operator Ladies and gentlemen, good morning and welcome to t ...

Nomad Foods | --- | --- | --- | --- | --- | --- | |-------|-------|-------|-------|-------|--------------------------------------| | | | | | | | | | | | | | | | | | | | | THIRD QUARTER 2022 Earnings Results | | | | | | | November 9, 2022 | | | | | | | | Disclaimer This Presentation has been prepared and issued by Nomad Foods Limited (the "Company"). This Presentation has been provided solely for information and background. The information in this Presentation is provided as at the date of the Presentation ( ...

Nomad Foods Limited (NYSE:NOMD) Q2 2022 Earnings Conference Call August 10, 2022 8:30 AM ET Company Participants Anthony Bucalo - Head of Investor Relations Stefan Descheemaeker - Chief Executive Officer Samy Zekhout - Chief Financial Officer Conference Call Participants Andrew Lazar - Barclays Jason English - Goldman Sachs Rob Moskow - Credit Suisse Steve Powers - Deutsche Bank John Baumgartner - Mizuho Cody Ross - UBS JM Shekian - Citi Operator Good day and welcome to the Nomad Foods Second Quarter 2022 E ...