Nomad Foods(US:NOMD)2025-05-08 10:45Revenue and Profit - Revenue for the three months ended March 31, 2025, was €760.1 million, a decrease of 3.3% compared to €783.7 million in the same period of 2024[10] - Profit for the period was €32.7 million, compared to €34.5 million in the prior year, reflecting a decline of 5.2%[10] - Total comprehensive income for the period was €30.0 million, down from €49.3 million in the same quarter of 2024[12] - Profit for the period decreased to €32.7 million in Q1 2025 from €34.5 million in Q1 2024, representing a decline of 5.2%[18] - Adjusted EBITDA for the three months ended March 31, 2025, was €120.1 million, a decrease of 1.8% from €122.3 million in 2024[50] - Total external revenue for the three months ended March 31, 2025, was €760.1 million, down 3.0% from €783.7 million in 2024[52] - Profit for the period attributable to equity owners of the parent was €32.7 million for Q1 2025, compared to €34.5 million in Q1 2024, reflecting a decline of 5.2%[65] Cash Flow and Financing Activities - Net cash generated from operating activities decreased by €48.4 million to €50.6 million, primarily due to changes in working capital[5] - Net cash used in financing activities increased by €23.0 million to €110.5 million, driven by higher interest and dividend payments[7] - The company reported a net decrease in cash and cash equivalents of €77.4 million during the three months ended March 31, 2025[4] - Operating cash flow before changes in working capital, provisions, and exceptional items was €119.3 million in Q1 2025, down from €122.1 million in Q1 2024, a decrease of 2.3%[18] - Net cash generated from operating activities fell to €50.6 million in Q1 2025 compared to €99.0 million in Q1 2024, a decline of 48.9%[18] - Net cash used in investing activities was €17.5 million in Q1 2025, slightly higher than €16.8 million in Q1 2024[18] - Net cash used in financing activities increased to €110.5 million in Q1 2025 from €87.5 million in Q1 2024, an increase of 26.3%[18] - Cash and cash equivalents at the end of the period decreased to €329.8 million in Q1 2025 from €390.7 million in Q1 2024, a decrease of 15.6%[18] Assets and Liabilities - Total assets as of March 31, 2025, were €6,400.7 million, down from €6,431.6 million at the end of 2024[9] - Cash and cash equivalents at the end of the period were €329.8 million, a decrease from €403.3 million at the end of 2024[9] - Total provisions increased to €31.0 million as of March 31, 2025, up from €29.8 million at December 31, 2024, primarily due to restructuring activities[81] - The total net employee benefit obligations decreased to €146.5 million as of March 31, 2025, from €152.1 million at January 1, 2025[83] - The fair value of the Senior EUR/USD loans as of March 31, 2025, was €1,319.1 million, down from €1,353.6 million at December 31, 2024[79] Shareholder Activities - Basic and diluted earnings per share remained stable at €0.21 for both periods[10] - The company repurchased ordinary shares amounting to €48.9 million in Q1 2025, compared to €7.1 million in Q1 2024[18] - Dividends paid increased to €25.3 million in Q1 2025 from €22.3 million in Q1 2024, an increase of 13.5%[18] - A dividend of $0.17 per share for the quarter ended March 31, 2025, was approved, amounting to $26.2 million, payable on May 28, 2025[102] - The company authorized a share repurchase program on November 6, 2023, to buy back up to $500 million of ordinary shares, with 7,415,614 shares repurchased at an average price of $17.50, totaling $129.9 million by December 31, 2024[98] - An additional 2,874,471 ordinary shares were repurchased in the three months ended March 31, 2025, at an average price of $17.38, costing $50.0 million[98] Organizational Changes and Future Plans - The company is executing a business transformation program aimed at optimizing processes, with expenses incurred to date including restructuring and transformational project costs[54][55] - The organizational streamlining program initiated in 2025 aims to reduce operational expenses significantly, with completion expected in 2026[56] - The company plans to close its pea processing operations in Sweden by December 2025, with the financial impact expected to be immaterial[109] Other Financial Information - The company incurred €14.4 million in cash outflows related to exceptional items for the three months ended March 31, 2025, down from €24.0 million in 2024[59] - The income tax expense for the three months ended March 31, 2025, was €7.0 million, slightly lower than €7.4 million in 2024[62] - The fair value of derivative financial instruments held by the company was estimated using discounted cash flow calculations, with a total of €4.0 million recognized as assets[48][73] - The share-based payment expense for the three months ended March 31, 2025, was €3.5 million, compared to €3.0 million for the same period in 2024[92] - As of March 31, 2025, the total number of Management Share Awards outstanding was 3,377,951, an increase from 3,128,416 at January 1, 2025[87] - The Company granted 1,024,922 performance share awards and 114,669 restricted share awards as part of the 2025 Management Share Award[91] - As of March 31, 2025, the share-based compensation reserve decreased to €25.6 million from €34.5 million as of December 31, 2024, reflecting a reduction of approximately 25.5%[97]