Nomad Foods(NOMD) - 2023 Q4 - Annual Report

Financial Performance - Record-high net sales and Adjusted EBITDA for full year 2023, with Adjusted EPS of €1.61[1] - Full year 2024 guidance: organic net revenue growth of 3%-4%, Adjusted EBITDA growth of 4%-6%, and Adjusted EPS of €1.75-€1.80, implying 9-12% growth[3] - Q4 2023 revenue increased 1.4% to €761 million, with organic revenue growth of 1.9% driven by a 7.5% price increase offset by a 5.6% volume/mix decline[6][7] - Full year 2023 revenue increased 3.6% to €3.045 billion, with organic revenue growth of 4.9% driven by a 14.4% price increase offset by a 9.5% volume/mix decline[6][13] - Adjusted EBITDA for Q4 2023 increased 3.2% to €117 million, while full year 2023 Adjusted EBITDA increased 2% to €535 million[6][13] - Adjusted free cash flow for 2023 was €300 million, representing a 109% conversion rate[6] - Gross profit for Q4 2023 increased 8% to €208 million, with gross margin up 160 basis points to 27.3%[7] - Full year 2023 gross profit increased 5% to €859 million, with gross margin up 50 basis points to 28.2%[13] - Adjusted operating expenses for Q4 2023 increased 14% to €117 million due to higher A&P investment[13] - Full year 2023 Adjusted EPS decreased 4.2% to €1.61, reflecting higher interest charges[13] - Adjusted EBITDA margin for the twelve months ended December 31, 2023, was 17.8%, calculated based on Adjusted EBITDA and Revenue of €2,939.7 million[34] - Organic revenue growth for the twelve months ended December 31, 2023, was 4.9%, contributing to a total reported revenue growth of 3.6%[35] - Adjusted free cash flow for the year ended December 31, 2023, was €299.9 million, representing 109% of adjusted profit for the period[38] - The company reported a profit for the period of €192.7 million in 2023, down from €249.8 million in 2022, impacted by exceptional items and other adjustments[27] - Revenue for the three months ended December 31, 2023, was €760.8 million, with an adjusted operating profit of €90.4 million[29] - Adjusted EBITDA for Q4 2023 was €116.6 million, with an Adjusted EBITDA margin of 15.3% based on revenue of €760.8 million[45][48] - Revenue for Q4 2023 was €760.8 million, compared to €750.2 million in Q4 2022, showing a 1.4% increase[45][50] - Adjusted EBITDA for the full year 2023 was €535.0 million, with an Adjusted EBITDA margin of 17.6% based on revenue of €3,044.5 million[61][62] - The company's revenue for the full year 2023 was €3,044.5 million, compared to €2,985.0 million in 2022, reflecting a 2.0% increase[57][61] - Revenue for the twelve months ended December 31, 2022 was €2,939.7 million[64] - Gross profit for the period was €815.3 million[64] - Adjusted operating profit increased to €435.8 million, up from €375.4 million as reported[64] - Profit for the period after adjustments was €293.4 million, compared to €249.8 million as reported[64] - Basic and diluted earnings per share increased to €1.68 from €1.43 after adjustments[64] - Adjusted EBITDA for the twelve months ended December 31, 2022 was €524.4 million[68] Cash Flow and Financial Position - Total assets increased to €6,416.7 million in 2023 from €6,326.1 million in 2022, driven by growth in non-current assets and current assets[26] - Net cash generated from operating activities rose to €430.8 million in 2023, up from €303.8 million in 2022, reflecting improved operational efficiency[27] - The company repurchased ordinary shares worth €170.9 million in 2023, significantly higher than the €26.8 million repurchased in 2022[27] - Cash and cash equivalents at the end of 2023 stood at €399.7 million, including bank overdrafts of €13.2 million[27] - Adjusted profit for the period was €274.8 million, with adjusted free cash flow conversion at 109%[38] Costs and Expenses - The company incurred €68.4 million in expenses related to the Business Transformation Program for the full year 2023[61][62] - Fortenova Group integration costs for Q4 2023 were €2.8 million, contributing to the overall exceptional items[45][46] - Share-based payment charges and employer payroll taxes for the full year 2023 amounted to €26.1 million[57][62] - Depreciation and amortization for the full year 2023 totaled €95.0 million[61] - The Information Technology Transformation program was completed in 2023, with associated expenses of €0.6 million for the full year[61][62] - Exceptional items included €37.0 million for Business Transformation Program and €9.5 million for Fortenova Group integration costs[68] - Depreciation and amortization amounted to €88.6 million[68] - Net financing costs after adjustments were €65.9 million, up from €54.4 million as reported[64] - Taxation after adjustments increased to €76.5 million from €71.2 million as reported[64]