Group 1 - The core investment strategy focuses on long-only investment, evaluating companies from an operational and buy-and-hold perspective, rather than market-driven dynamics [1] - The articles emphasize understanding the long-term earnings power of companies and the competitive dynamics within their industries [1] - The majority of recommendations will be holds, indicating a cautious approach to investment opportunities [1] Group 2 - A very small fraction of companies are expected to be a buy at any given time, highlighting a selective investment strategy [1] - Hold articles are intended to provide valuable information for future investors and introduce skepticism in a generally bullish market [1]

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]

[Executive Summary & Outlook](index=1&type=section&id=Executive%20Summary%20%26%20Outlook) Nomad Foods achieved record 2024 performance, issued positive 2025 guidance, and received strong management commentary [Highlights of Q4 and Full Year 2024 Performance](index=1&type=section&id=Highlights%20of%20Q4%20and%20Full%20Year%202024%20Performance) Nomad Foods achieved its ninth consecutive year of record-high net sales and Adjusted EBITDA in fiscal year 2024, driven by accelerated organic sales growth, higher volumes, robust margin expansion, and market share gains | Metric | Q4 2024 | Full Year 2024 | | :-------------------------------- | :------ | :------------- | | Reported Revenue Growth | 4.3% | 1.8% | | Organic Revenue Growth | 3.1% | 1.0% | | Volume Growth | 4.7% | 1.3% | | Adjusted EBITDA | €137M | €565M | | Adjusted EBITDA Growth | 17.6% | 5.6% | | Adjusted EPS | €0.42 | €1.78 | | Adjusted EPS Growth | 31% | 11% | | Adjusted Free Cash Flow | - | €292M | | Adjusted Free Cash Flow Conversion| - | 101% | - Nomad Foods returned **€208 million** to shareholders in 2024 through dividends and share repurchases, with basic shares outstanding decreasing by **4%** from year-end 2023[4](index=4&type=chunk)[12](index=12&type=chunk) [Full Year 2025 Guidance](index=1&type=section&id=Full%20Year%202025%20Guidance) For fiscal year 2025, Nomad Foods anticipates continued top and bottom-line growth, with an increased Adjusted EPS outlook, reflecting confidence in sustained momentum and strategic investments | Metric | 2025 Guidance | | :-------------------------------- | :------------ | | Organic Revenue Growth | 1%-3% | | Adjusted EBITDA Growth | 2%-4% | | Adjusted EPS (prior outlook) | €1.81-€1.85 | | Adjusted EPS (new outlook) | €1.85-€1.89 | | Adjusted EPS Growth (new outlook) | 4%-6% | | Adjusted Free Cash Flow Conversion| 90% or greater| - The Board of Directors approved a **13%** increase to the company's Q1 2025 cash dividend, signaling strong cash generation and growth prospects[4](index=4&type=chunk) [Management & Board Commentary](index=1&type=section&id=Management%20%26%20Board%20Commentary) Management highlighted successful brand investments and operational excellence in 2024, driving accelerating volume momentum and market share gains, expressing confidence for continued growth in 2025 - CEO Stéfan Descheemaeker noted that investments made in 2023 delivered strong returns in 2024, evidenced by accelerating volume momentum and market share gains in the latter half of the year[6](index=6&type=chunk) - The company strengthened its innovation engine, increasing innovation as a percentage of sales year-over-year, and expanded margins through supply chain productivity and focused growth investments[6](index=6&type=chunk) - Co-Chairman and Founder Noam Gottesman expressed optimism for Nomad Foods' growth potential, highlighting its curated portfolio of iconic brands and outperformance versus industry peers[6](index=6&type=chunk)[8](index=8&type=chunk) [Company Overview & Contacts](index=3&type=section&id=Company%20Overview%20%26%20Contacts) This section details conference call information, investor contacts, and a brief company overview [Conference Call and Webcast Information](index=3&type=section&id=Conference%20Call%20and%20Webcast%20Information) Nomad Foods hosted a conference call and webcast on March 3, 2025, to discuss the financial results, with replay options available for two weeks - The conference call was held on Monday, March 3, 2025, at 1:30 p.m. GMT (8:30 a.m. Eastern Standard Time)[10](index=10&type=chunk) - Both the presentation and webcast are accessible via the Nomad Foods website under Investor Relations[10](index=10&type=chunk) [Investor Relations and Media Contacts](index=3&type=section&id=Investor%20Relations%20and%20Media%20Contacts) Contact information for investor relations and media inquiries is provided for stakeholders - Investor Relations Contact: Jason English (investorrelations@nomadfoods.com)[11](index=11&type=chunk) - Media Contact: Elaine McCrimmon, Group Corporate Affairs Director (elaine.mccrimmon@nomadfoods.com)[11](index=11&type=chunk) [About Nomad Foods](index=3&type=section&id=About%20Nomad%20Foods) Nomad Foods is Europe's leading frozen food company, known for its portfolio of iconic brands that provide convenient, high-quality, and nutritious food - Nomad Foods (NYSE: NOMD) is Europe's leading frozen food company[11](index=11&type=chunk) - Its brand portfolio includes Birds Eye, Findus, iglo, Ledo, and Frikom[11](index=11&type=chunk) - The company is headquartered in the United Kingdom[11](index=11&type=chunk) [Detailed Financial Performance](index=3&type=section&id=Detailed%20Financial%20Performance) This section provides a detailed breakdown of Nomad Foods' financial results for the fourth quarter and full year 2024 compared to 2023 [Fourth Quarter 2024 Results vs. Fourth Quarter 2023](index=3&type=section&id=Fourth%20Quarter%202024%20Results%20vs.%20Fourth%20Quarter%202023) Nomad Foods reported strong fourth-quarter results with significant growth in revenue, gross profit, and adjusted earnings, driven by volume growth and improved margins | Metric | Q4 2024 | Q4 2023 | Change | | :-------------------------------- | :------ | :------ | :----- | | Revenue | €793M | €760.8M | +4.3% | | Organic Revenue Growth | 3.1% | - | - | | Volume Growth | 4.7% | - | - | | Price/Mix | -1.6% | - | - | | Gross Profit | €226M | €207.7M | +9% | | Gross Margin | 28.5% | 27.3% | +120 bps| | Adjusted Operating Expenses | €114M | €122.6M | -3% | | Adjusted EBITDA | €137M | €116.6M | +17.6% | | Adjusted Profit after tax | €67M | €52.3M | +28% | | Adjusted EPS | €0.42 | €0.32 | +31% | | Reported Diluted EPS | €0.32 | €0.15 | +113% | - Gross margin increased by **120 basis points** to **28.5%** due to positive product mix performance and improved supply chain productivity[12](index=12&type=chunk) - Adjusted operating expenses decreased by **3%** due to lower Advertising & Promotion (A&P) spend, cycling a sharp increase in Q4 2023[12](index=12&type=chunk) [Full Year 2024 Results vs. Full Year 2023](index=3&type=section&id=Full%20Year%202024%20Results%20vs.%20Full%20Year%202023) For the full year 2024, Nomad Foods achieved revenue growth, significant gross profit improvement, and increased adjusted earnings, alongside substantial shareholder returns | Metric | FY 2024 | FY 2023 | Change | | :-------------------------------- | :------ | :------ | :----- | | Revenue | €3.1B | €3.04B | +1.8% | | Organic Revenue Growth | 1.0% | - | - | | Volume Growth | 1.3% | - | - | | Price/Mix | -0.3% | - | - | | Gross Profit | €918M | €858.7M | +7% | | Gross Margin | 29.6% | 28.2% | +140 bps| | Adjusted Operating Expenses | €450M | €418.7M | +7% | | Adjusted EBITDA | €565M | €535M | +5.6% | | Adjusted Profit after tax | €289M | €274.8M | +5% | | Adjusted EPS | €1.78 | €1.61 | +11% | | Reported Diluted EPS | €1.40 | €1.13 | +24% | - Gross margin increased by **140 basis points** to **29.6%** due to positive product mix and improved supply chain productivity[12](index=12&type=chunk) - Adjusted operating expenses increased by **7%** due to higher A&P and ongoing investments in capabilities development, alongside inflationary headwinds[12](index=12&type=chunk) [Non-IFRS Financial Measures](index=4&type=section&id=Non-IFRS%20Financial%20Measures) This section defines the company's non-IFRS financial measures and outlines their purpose and inherent limitations [Definition and Purpose of Non-IFRS Measures](index=4&type=section&id=Definition%20and%20Purpose%20of%20Non-IFRS%20Measures) Nomad Foods presents Adjusted and Organic financial information as non-IFRS measures to provide a clearer view of underlying operating results by excluding certain non-recurring or non-operational items - Adjusted financial information primarily excludes share-based payment expenses, non-operating M&A costs, acquisition purchase price adjustments, exceptional items, and foreign currency exchange charges/gains[14](index=14&type=chunk) - Adjusted EBITDA, Adjusted Profit for the period, and Adjusted EPS are used to assess operating performance on a consistent basis, excluding items not indicative of normal operating costs[15](index=15&type=chunk)[17](index=17&type=chunk)[18](index=18&type=chunk) - Organic revenue growth reflects reported revenue adjusted for currency translation and non-comparable trading items to show underlying business growth[19](index=19&type=chunk) [Limitations of Non-IFRS Measures](index=5&type=section&id=Limitations%20of%20Non-IFRS%20Measures) The company cautions that its non-IFRS financial measures should not be considered alternatives to IFRS reported results, as their calculation may differ from other companies, limiting comparability and not necessarily indicating future financial performance - Non-IFRS financial measures should not be considered an alternative or substitute for the Company's reported results in accordance with IFRS[23](index=23&type=chunk) - Nomad Foods' calculation of these measures may differ from other companies, potentially limiting comparability[23](index=23&type=chunk) - Investors are cautioned not to place undue reliance on these results as they may not be representative of actual or future results[23](index=23&type=chunk) [Consolidated Financial Statements (As Reported)](index=6&type=section&id=Consolidated%20Financial%20Statements%20%28As%20Reported%29) This section presents the unaudited and audited consolidated financial statements, including profit or loss, financial position, and cash flows for 2024 and 2023 [Statements of Profit or Loss (unaudited) Three months ended December 31, 2024 and December 31, 2023](index=6&type=section&id=Statements%20of%20Profit%20or%20Loss%20%28Q4%202024%20%26%202023%29) The unaudited statements of profit or loss for Q4 2024 show an increase in revenue, gross profit, and profit for the period compared to Q4 2023 | € in millions | Dec 31, 2024 | Dec 31, 2023 | | :-------------------------- | :----------- | :----------- | | Revenue | 793.4 | 760.8 | | Cost of sales | (567.5) | (553.1) | | Gross profit | 225.9 | 207.7 | | Operating profit | 91.5 | 66.7 | | Profit before tax | 61.3 | 46.2 | | Profit for the period | 51.4 | 24.7 | | Basic earnings per share in € | 0.32 | 0.15 | | Diluted earnings per share in € | 0.32 | 0.15 | [Statements of Profit or Loss (audited) Twelve months ended December 31, 2024 and December 31, 2023](index=7&type=section&id=Statements%20of%20Profit%20or%20Loss%20%28FY%202024%20%26%202023%29) The audited statements of profit or loss for the full year 2024 demonstrate growth in revenue, gross profit, and profit for the period compared to 2023 | € in millions | Dec 31, 2024 | Dec 31, 2023 | | :-------------------------- | :----------- | :----------- | | Revenue | 3,099.8 | 3,044.5 | | Cost of sales | (2,182.0) | (2,185.8) | | Gross profit | 917.8 | 858.7 | | Operating profit | 387.0 | 340.4 | | Profit before tax | 277.9 | 253.6 | | Profit for the period | 227.1 | 192.7 | | Basic earnings per share in € | 1.41 | 1.13 | | Diluted earnings per share in € | 1.40 | 1.13 | [Statements of Financial Position (audited) As at December 31, 2024 and December 31, 2023](index=8&type=section&id=Statements%20of%20Financial%20Position%20%28As%20at%20Dec%2031%2C%202024%20%26%202023%29) The audited statements of financial position show a slight increase in total assets and net assets at the end of 2024 compared to 2023, with changes in current and non-current liabilities | € in millions | Dec 31, 2024 | Dec 31, 2023 | | :-------------------------- | :----------- | :----------- | | Total non-current assets | 5,197.7 | 5,251.6 | | Total current assets | 1,233.9 | 1,165.1 | | Total assets | 6,431.6 | 6,416.7 | | Total current liabilities | 1,123.3 | 1,028.0 | | Total non-current liabilities | 2,645.8 | 2,796.8 | | Total liabilities | 3,769.1 | 3,824.8 | | Net assets | 2,662.5 | 2,591.9 | | Total equity | 2,662.5 | 2,591.9 | [Statements of Cash Flows (audited) For the twelve months ended December 31, 2024 and the twelve months ended December 31, 2023](index=9&type=section&id=Statements%20of%20Cash%20Flows%20%28FY%202024%20%26%202023%29) The audited statements of cash flows for 2024 indicate a slight increase in net cash flows from operating activities, while cash used in financing activities increased significantly | € in millions | FY 2024 | FY 2023 | | :-------------------------------- | :------ | :------ | | Net cash flows from operating activities | 435.4 | 430.8 | | Cash used in investing activities | (64.4) | (76.8) | | Net cash used in financing activities | (366.4) | (321.5) | | Net increase in cash and cash equivalents | 4.6 | 32.5 | | Cash and cash equivalents at end of period | 403.3 | 399.7 | - Repurchase of ordinary shares amounted to **€118.7 million** in 2024, and dividends paid were **€89.2 million**[28](index=28&type=chunk) [Reconciliation of Non-IFRS Financial Measures](index=10&type=section&id=Reconciliation%20of%20Non-IFRS%20Financial%20Measures) This section provides detailed reconciliations of reported IFRS figures to non-IFRS adjusted financial measures for both quarterly and annual periods [Adjusted Statement of Profit or Loss (unaudited) Three months ended December 31, 2024](index=10&type=section&id=Adjusted%20Statement%20of%20Profit%20or%20Loss%20%28Q4%202024%29) The adjusted profit or loss statement for Q4 2024 shows adjustments for share-based payments, M&A costs, exceptional items, and foreign exchange, leading to a higher adjusted profit and EPS | € in millions, except per share data | As reported | Adjustments | As adjusted | | :----------------------------------- | :---------- | :---------- | :---------- | | Revenue | 793.4 | — | 793.4 | | Operating profit | 91.5 | 20.1 | 111.6 | | Profit for the period | 51.4 | 15.7 | 67.1 | | Diluted earnings per share in € | 0.32 | | 0.42 | - Adjustments include **€0.8 million** for share-based payment charges and non-operating M&A costs, **€19.3 million** for exceptional items, and **€3.2 million** for foreign exchange translation losses[30](index=30&type=chunk)[31](index=31&type=chunk) [Adjusted EBITDA (unaudited) Three months ended December 31, 2024](index=11&type=section&id=Adjusted%20EBITDA%20%28Q4%202024%29) Adjusted EBITDA for Q4 2024 was €137.1 million, with a margin of 17.3%, after accounting for exceptional items and other adjustments | € in millions | Q4 2024 | | :-------------------------- | :------ | | Profit for the period | 51.4 | | Taxation | 9.9 | | Net financing costs | 30.2 | | Depreciation and amortization | 25.5 | | Exceptional items | 19.3 | | Other Adjustments | 0.8 | | Adjusted EBITDA | 137.1 | - Exceptional items primarily include **€20.8 million** for the Business Transformation Program, offset by **€1.5 million** income from settlement of legacy matters[35](index=35&type=chunk) - Adjusted EBITDA margin for Q4 2024 was **17.3%**[37](index=37&type=chunk) [Adjusted Statements of Profit or Loss (unaudited) Three months ended December 31, 2023](index=12&type=section&id=Adjusted%20Statement%20of%20Profit%20or%20Loss%20%28Q4%202023%29) The adjusted profit or loss statement for Q4 2023 shows adjustments for share-based payments, M&A costs, exceptional items, and foreign exchange, leading to a higher adjusted profit and EPS | € in millions, except per share data | As reported | Adjustments | As adjusted | | :----------------------------------- | :---------- | :---------- | :---------- | | Revenue | 760.8 | — | 760.8 | | Operating profit | 66.7 | 23.7 | 90.4 | | Profit for the period | 24.7 | 27.6 | 52.3 | | Diluted earnings per share in € | 0.15 | | 0.32 | - Adjustments include **€5.3 million** for share-based payment charges and non-operating M&A costs, **€18.4 million** for exceptional items, and **€4.8 million** for net financing costs adjustments[39](index=39&type=chunk)[41](index=41&type=chunk) [Adjusted EBITDA (unaudited) Three months ended December 31, 2023](index=13&type=section&id=Adjusted%20EBITDA%20%28Q4%202023%29) Adjusted EBITDA for Q4 2023 was €116.6 million, with a margin of 15.3%, after accounting for exceptional items and other adjustments | € in millions | Q4 2023 | | :-------------------------- | :------ | | Profit for the period | 24.7 | | Taxation | 21.5 | | Net financing costs | 20.5 | | Depreciation and amortization | 26.2 | | Exceptional items | 19.4 | | Other Adjustments | 4.3 | | Adjusted EBITDA | 116.6 | - Exceptional items include **€16.6 million** for the Business Transformation Program and **€2.8 million** for Fortenova Group integration costs[43](index=43&type=chunk) - Adjusted EBITDA margin for Q4 2023 was **15.3%**[44](index=44&type=chunk) [Adjusted Statement of Profit or Loss (unaudited) Twelve months ended December 31, 2024](index=14&type=section&id=Adjusted%20Statement%20of%20Profit%20or%20Loss%20%28FY%202024%29) The adjusted profit or loss statement for FY 2024 shows significant adjustments for non-operating items, resulting in a higher adjusted profit and EPS compared to reported figures | € in millions, except per share data | As reported | Adjustments | As adjusted | | :----------------------------------- | :---------- | :---------- | :---------- | | Revenue | 3,099.8 | — | 3,099.8 | | Operating profit | 387.0 | 81.2 | 468.2 | | Profit for the period | 227.1 | 61.7 | 288.8 | | Diluted earnings per share in € | 1.40 | | 1.78 | - Adjustments include **€11.7 million** for share-based payment charges and non-operating M&A costs, **€69.5 million** for exceptional items, and **€0.9 million** for net financing costs adjustments[46](index=46&type=chunk)[48](index=48&type=chunk) [Adjusted EBITDA (unaudited) Twelve months ended December 31, 2024](index=15&type=section&id=Adjusted%20EBITDA%20%28FY%202024%29) Adjusted EBITDA for FY 2024 was €565.1 million, with a margin of 18.2%, after accounting for various adjustments | € in millions | FY 2024 | | :-------------------------- | :------ | | Profit for the period | 227.1 | | Taxation | 50.8 | | Net financing costs | 109.1 | | Depreciation and amortization | 96.9 | | Exceptional items | 69.5 | | Other Adjustments | 11.7 | | Adjusted EBITDA | 565.1 | - Exceptional items include **€68.0 million** for the Business Transformation Program and **€1.5 million** for settlement of legacy matters[49](index=49&type=chunk) - Adjusted EBITDA margin for FY 2024 was **18.2%**[50](index=50&type=chunk) [Adjusted Statements of Profit or Loss (unaudited) Twelve months ended December 31, 2023](index=16&type=section&id=Adjusted%20Statement%20of%20Profit%20or%20Loss%20%28FY%202023%29) The adjusted profit or loss statement for FY 2023 shows adjustments for non-operating items, resulting in a higher adjusted profit and EPS compared to reported figures | € in millions, except per share data | As reported | Adjustments | As adjusted | | :----------------------------------- | :---------- | :---------- | :---------- | | Revenue | 3,044.5 | — | 3,044.5 | | Operating profit | 340.4 | 99.6 | 440.0 | | Profit for the period | 192.7 | 82.1 | 274.8 | | Diluted earnings per share in € | 1.13 | | 1.61 | - Adjustments include **€27.1 million** for share-based payment charges and non-operating M&A costs, **€72.5 million** for exceptional items, and **€9.5 million** for net financing costs adjustments[52](index=52&type=chunk)[54](index=54&type=chunk) [Adjusted EBITDA (unaudited) Twelve months ended December 31, 2023](index=17&type=section&id=Adjusted%20EBITDA%20%28FY%202023%29) Adjusted EBITDA for FY 2023 was €535.0 million, with a margin of 17.6%, after accounting for various adjustments | € in millions | FY 2023 | | :-------------------------- | :------ | | Profit for the period | 192.7 | | Taxation | 60.9 | | Net financing costs | 86.8 | | Depreciation and amortization | 95.0 | | Exceptional items | 72.5 | | Other Adjustments | 27.1 | | Adjusted EBITDA | 535.0 | - Exceptional items include **€0.6 million** for IT Transformation, **€68.4 million** for Business Transformation, and **€4.3 million** for Fortenova Group integration costs[55](index=55&type=chunk) - Adjusted EBITDA margin for FY 2023 was **17.6%**[55](index=55&type=chunk) [Reconciliation of Reported to Organic Revenue Growth](index=18&type=section&id=Reconciliation%20of%20Reported%20to%20Organic%20Revenue%20Growth) The reconciliation shows the breakdown of reported revenue growth into organic revenue growth and the impact of translational foreign exchange for both Q4 and the full year 2024 | Metric | Q4 2024 YoY Change | FY 2024 YoY Change | | :-------------------------- | :----------------- | :----------------- | | Reported Revenue Growth | 4.3 % | 1.8 % | | Organic Revenue Growth | 3.1 % | 1.0 % | | Translational FX | 1.2 % | 0.8 % | [Reconciliation of Net Cash Flows from Operating Activities to Adjusted Free Cash Flow](index=19&type=section&id=Reconciliation%20of%20Net%20Cash%20Flows%20from%20Operating%20Activities%20to%20Adjusted%20Free%20Cash%20Flow) The reconciliation details the adjustments made to net cash flows from operating activities to arrive at Adjusted Free Cash Flow for FY 2024, which stood at €292.3 million, representing a 101% conversion rate of adjusted profit | € in millions | FY 2024 | | :---------------------------------------------------- | :------ | | Net cash flows from operating activities | 435.4 | | Add back: Cash flows relating to exceptional items | 67.7 | | Add back: Employer taxes related to share based payments | 1.6 | | Add back: Non-operating M&A costs | 1.2 | | Deduct: Capital expenditure | (80.3) | | Deduct: Net interest paid | (102.0) | | Deduct: Payment of lease liabilities | (31.3) | | Adjusted free cash flow | 292.3 | | Adjusted profit for the period | 288.8 | | Adjusted free cash flow as % adjusted profit for the period | 101 % | - Adjusted free cash flow conversion was **101%** of Adjusted Profit for the period in 2024[60](index=60&type=chunk) [Legal Disclaimers](index=20&type=section&id=Legal%20Disclaimers) This section outlines important legal disclaimers regarding forward-looking statements and the nature of the report as an informational release [Forward-Looking Statements](index=20&type=section&id=Forward-Looking%20Statements) The report contains forward-looking statements regarding future performance and expectations, which are subject to known and unknown risks and uncertainties that could cause actual results to differ materially - Forward-looking statements are based on the Company's expectations, intentions, and projections regarding future performance, anticipated events, or trends[62](index=62&type=chunk) - These statements are not guarantees of future performance and are subject to various known and unknown risks and uncertainties, including supply chain issues, inflation, competition, and changes in consumer preferences[63](index=63&type=chunk) - Prospective investors are cautioned not to place undue reliance on forward-looking statements, and the Company does not undertake to update or revise them[63](index=63&type=chunk) [No Offer or Solicitation](index=20&type=section&id=No%20Offer%20or%20Solicitation) This release is for informational purposes only and does not constitute an offer to sell or a solicitation to purchase securities, nor does it imply any sale or transfer of securities in contravention of applicable law - This release is provided for informational purposes only and does not constitute an offer to sell or an invitation to subscribe for, purchase, or exchange any securities[64](index=64&type=chunk) - The release, publication, or distribution of this announcement in certain jurisdictions may be restricted by law[65](index=65&type=chunk)

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]

Company Overview - Nomad Foods Limited (NYSE: NOMD) is Europe's leading frozen food company, with a portfolio of iconic brands including Birds Eye, Findus, iglo, Ledo, and Frikom, known for their great tasting, convenient, high quality, and nutritious food [3]. Upcoming Financial Results - Nomad Foods will report its fourth quarter results for the period ended December 31, 2024, before the market opens on March 3, 2025 [1]. - A conference call with the executive management team will take place on the same day at 8:30 AM Eastern Daylight Time to discuss the results [2]. Conference Call Details - The conference call can be accessed by North American listeners at +1-833-816-1430 and international listeners at +1-412-317-0522 [2]. - A presentation will accompany the call, which will also be webcast and available on the Nomad Foods website under Investor Relations [2]. - A replay of the conference call will be available for two weeks post-event, accessible via specific dialing numbers for North American and international listeners [2].

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].

Company Overview - Nomad Foods Limited (NOMD) is currently experiencing significant activity in the options market, particularly with the May 16, 2025 $10 Call option showing high implied volatility, indicating potential for a major price movement [1] - The company holds a Zacks Rank of 4 (Sell) within the Food - Miscellaneous industry, which is positioned in the bottom 17% of the Zacks Industry Rank [3] Analyst Insights - Over the past 30 days, one analyst has raised the earnings estimate for the current quarter from 40 cents per share to 41 cents, while no analysts have lowered their estimates [3] - The current sentiment among analysts suggests that the high implied volatility may indicate a developing trading opportunity, as options traders often seek to sell premium on options with high implied volatility [4]