Core Insights - Nomad Foods (NOMD) is focusing on innovation to recover from a decline in total revenues, organic sales, and volume in Q1 2025, which fell by 3%, 3.6%, and 3.7% respectively [1][9] - The company is particularly enhancing its fish portfolio, which accounts for about one-third of total revenues, by renovating existing products and launching new lines [2][9] - Nomad Foods is targeting new consumption occasions, especially snacking, to reposition frozen fish products, with early success indicated by a 9% year-over-year increase in fish retail sales in Italy during Q1 [3][9] Innovation Strategy - The company plans to increase the percentage of sales from innovation in 2025 while maintaining investment levels despite macroeconomic challenges [4] - Management will monitor the performance of innovation initiatives and apply insights across markets to support volume trends and enhance product relevance over time [4] Industry Context - Other companies in the industry, such as Conagra Brands and Lamb Weston, are also focusing on innovation to drive growth, with Conagra reporting a 6.3% revenue decline in Q3 2025 and Lamb Weston achieving a 9% volume growth despite challenges [5][6][7] Financial Performance - Nomad Foods' shares have decreased by approximately 1.8% over the past month, contrasting with the industry's growth of 2.3% [8] - The company trades at a forward price-to-earnings ratio of 8.04X, significantly lower than the industry average of 15.97X [11] - The Zacks Consensus Estimate indicates a projected year-over-year sales growth of 4.6% and earnings per share growth of 7.3% for the current financial year [12] Sales and Earnings Estimates - Current quarter sales are estimated at $857.70 million, with a year-over-year growth estimate of 5.80% [14] - The earnings per share for the current year is projected at $2.07, reflecting a year-over-year growth estimate of 7.25% [15]

Core Insights - Anheuser-Busch InBev (AB InBev) announced a $17 million investment in its Houston brewery as part of its Brewing Futures program, which includes a total commitment of $300 million for facility investments across the U.S. by 2025 [1][9] - The investment aims to enhance brewing excellence and improve transportation capabilities, ensuring efficient product delivery throughout Texas, building on over $50 million already invested in the Houston site in the past three years [2][4] - AB InBev's Brewing Futures initiative focuses on creating a sustainable workforce, supporting job creation, and advancing opportunities for veterans in the manufacturing sector [3] Investment and Economic Impact - The Houston brewery has been a key operational hub for nearly 60 years, with AB InBev and its distributor partners investing over $2.3 billion in capital projects in Texas to date [4] - The company employs nearly 1,000 individuals across four facilities in Texas, significantly contributing to the local economy and the American brewing industry [4] - Nationally, AB InBev operates over 100 facilities and employs 65,000 Americans, having invested nearly $2 billion in facility upgrades over the past five years [5] Growth Strategy - AB InBev is experiencing strong revenue momentum driven by consumer demand for its diverse brand portfolio and strategic pricing initiatives [7] - The company is focusing on expanding its premium and super-premium beer offerings, with brands like Corona and Stella Artois performing well internationally [8] - AB InBev is also diversifying into new categories such as ready-to-drink beverages and hard seltzers, while enhancing its digital platforms for better customer engagement [10]

Summary of Nomad Foods Conference Call Company Overview - **Company**: Nomad Foods - **Industry**: Frozen Food Key Messages - **Category Advantage**: Nomad Foods believes it has a competitive edge in the frozen food category, which has shown strong performance over the last decade, outperforming overall food trends [3][4][19] - **Portfolio Strength**: The company has a diverse portfolio in frozen food, including fish, vegetables, chicken, ice cream, and pizza, with two-thirds of its business focused on protein and vegetables [5][6][21][23] - **Market Share Focus**: Nomad Foods emphasizes the importance of market share, stating that it has maintained an average market share of 46% in its key categories, which represent about 37% of net sales [14][24] Financial Performance - **Sales Growth**: The company has consistently increased sales and EBITDA over the past nine years, with growth rates of 6%, 7%, and 10% in recent years despite market challenges [8][9] - **EBITDA Guidance**: For the current year, Nomad Foods expects EBITDA growth between 2% and 6%, with adjusted EPS projected between €1.82 and €1.89 [66][69] - **Free Cash Flow**: The company has generated over €2 billion in adjusted free cash flow from 2017 to 2024, with expectations of around €850 million in the coming years [69][70] Market Dynamics - **Category Growth**: The frozen food category is projected to grow at 2% in value and 1% in volume, with Nomad Foods stabilizing its market share despite some seasonal fluctuations [61][63][65] - **Competitive Landscape**: The company acknowledges the competitive pressure from private labels but remains focused on innovation and brand strength to maintain its market position [76][80] Innovation and Product Development - **Innovation Strategy**: Nomad Foods aims to increase its innovation rate, targeting 6.5% of its product offerings to be new innovations, leveraging successful products from one market to introduce in others [27][28][34] - **Product Renovation**: The company is committed to improving existing products, with a goal to enhance taste and quality, particularly in categories like pizza and fish fingers [31][33][34] Challenges and Opportunities - **Inflation Impact**: The company faced inflationary pressures, particularly in protein costs, which affected gross margins. However, it has chosen not to reopen negotiations with retailers to adjust pricing immediately [66][67] - **M&A Strategy**: Nomad Foods remains open to M&A opportunities but emphasizes a disciplined approach, focusing on synergies and avoiding high multiples [100][102] Future Outlook - **Long-term Growth Potential**: The company sees significant growth potential in frozen food, particularly in markets like Italy and Germany, where it plans to expand its product offerings [20][36][38] - **Consumer Trends**: Nomad Foods is adapting to changing consumer preferences, including a focus on health and convenience, which aligns with the growing popularity of air fryers and healthier frozen options [18][20][17] Conclusion - Nomad Foods is positioned well within the frozen food industry, leveraging its strong portfolio and market share while focusing on innovation and strategic growth opportunities. The company is navigating current challenges with a clear strategy aimed at long-term success.

Company Performance & Strategy - Nomad Foods' revenue reached €3.1 billion in 2024, demonstrating a 6% Compound Annual Growth Rate (CAGR) [11] - Adjusted Earnings Per Share (EPS) showed a 10% CAGR, reaching €1.78 in 2024 [12] - Adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) exhibited a 7% CAGR, totaling €565 million in 2024 [12] - The company aims for 0-2% organic revenue growth and 2-6% adjusted EBITDA growth in 2025 [77] - Nomad Foods anticipates generating over €850 million in adjusted free cash flow over the next three years (2025-2027) [83] Market Position & Category - Nomad Foods holds the 1 brand preference in 12 out of 15 markets [19] - The company has a 46% weighted average value market share in its top 25 must-win battles [19] - European frozen retail sales amount to €55.4 billion, with food accounting for €39.2 billion and ice cream for €16.2 billion [15] - Meals made from frozen food cost €2-3 less compared to chilled equivalents [25] Innovation & Investment - Advertising and Promotion (A&P) spending increased by 14% year-over-year in 2023 and is projected to increase by 7% year-over-year in 2024 [38] - Innovation as a percentage of revenue is projected to reach near 5% in 2025 [41] - The company aims for 60% superior quality perception by 2025 and 80% by 2027 [43, 45]

Core Insights - Diageo plc reported net sales of $4.4 billion for Q3 fiscal 2025, reflecting a year-over-year increase of 2.9% driven by organic growth, despite foreign exchange challenges and disposals [1] - Organic net sales rose by 5.9% year-over-year, with significant contributions from various regions, particularly Latin America and the Caribbean, which saw a 29% increase [2][3] Sales Performance - Organic volumes increased by 2.8% and price/mix improved by 3.1%, with phasing gains contributing nearly 4% to organic net sales growth [2] - Regional performance varied, with North America up 6%, Asia Pacific up 2%, Latin America and the Caribbean up 29%, Africa up 10%, while Europe remained flat [2] Tariff Impact - The company faces a 10% tariff on U.K. and European imports into the U.S., with an estimated annual impact of C$150 million [5] - Tariffs between the U.S. and China are not expected to materially affect the business, with management aiming to mitigate nearly half of the operating profit impact [6] Strategic Initiatives - Diageo has launched the first phase of its Accelerate program, focusing on cash delivery goals and operational excellence, aiming for a more agile global operating model [7] - The company forecasts sustainable free cash flow of C$3 billion per year starting fiscal 2026, supported by C$500 million in cost savings over three years [8] Financial Guidance - Diageo anticipates a sequential improvement in organic net sales growth in the second half of fiscal 2025, despite a slight drop in organic operating profit compared to the previous year [10][12] - The effective tax rate for fiscal 2025 is projected to be around 25%, consistent with the previous year [13] Capital Expenditure - The company expects capital expenditure to be at the upper end of its previously guided range of $1.3-$1.5 billion for fiscal 2025 [14]

Core Insights - AB InBev is focused on investments to drive growth and diversify its portfolio of global, international, and craft specialty premium brands [1] - The company plans to invest $300 million in its U.S. manufacturing operations in 2025 to enhance training, recruitment, and local production [2] - This investment follows a nearly $2 billion investment in U.S. facilities over the past five years, aimed at boosting the economy and sustaining jobs [3] Investment and Operations - The investments are intended to improve internal systems at U.S. manufacturing facilities, enhancing brewery efficiency and economic prosperity [4] - AB InBev reported mixed first-quarter 2025 results, with strong earnings performance but soft sales, driven by diversified operations and demand for megabrands [5] - Revenues from megabrands increased by 4.4%, particularly benefiting from the strong performance of the Corona brand [5] Digital Transformation - The company has been rapidly growing its digital platforms, with B2B digital platforms contributing approximately 72% to revenues in Q1 2025 [6] - The omnichannel ecosystem generated $275 million in revenues during the same period [6] Beyond Beer Portfolio - AB InBev's Beyond Beer portfolio saw a revenue increase of 16.6%, driven by double-digit growth in brands like Cutwater and Nütrl in the U.S. and Beats in Brazil [7] Stock Performance - Over the past three months, AB InBev's shares have increased by 25.5%, outperforming the industry growth of 18.9% [8]

Group 1: Trade Deal Impact - The stock market experienced a historic rebound following President Trump's announcement of a new trade deal with the United Kingdom, aimed at reducing trade barriers [1] - Several British ADRs are highlighted as potential investment opportunities due to the trade deal [1] Group 2: Nomad Foods (NOMD) - Nomad Foods is the largest frozen food company in Europe and has been identified as a strong buy with a Zacks Rank 1, having increased by 16% in 2025 [2] - EPS estimates for Nomad Foods have been trending higher, with an expected rise of 11% this year and a projected increase of 7% in fiscal 2026 to $2.31 [3][4] - The stock trades under $20 at a forward earnings multiple of 8.9X, indicating a favorable valuation [3] Group 3: Rolls-Royce (RYCEY) - Rolls-Royce is positioned favorably with a Zacks Rank 2, as U.K. car tariffs will be reduced from 25% to 10% on the first 100,000 imported vehicles [4][5] - The stock is currently priced around $10, presenting a favorable risk-to-reward scenario [5] Group 4: BP (BP) - BP, formerly British Petroleum, is trading under $30 and offers a 6.75% annual dividend yield, making it a potential buy-the-dip candidate [6][7] - The elimination of higher tariffs on steel and aluminum is expected to benefit BP significantly, as it faced issues related to infrastructure projects [7][8]

Financial Data and Key Metrics Changes - Reported net revenues decreased by 3% to €760 million, with organic sales declining by 3.6% and volume declining by 3.7% [23][24] - Gross margin increased by 90 basis points year on year to 27.8% [24] - Adjusted EBITDA decreased by 1.8% year on year to €120 million, while adjusted EPS fell by 5.4% to €0.35 due to net sales contraction [26][30] Business Line Data and Key Metrics Changes - Net sales for growth platforms rose by 36% year over year in the first quarter, with chicken performing particularly well [15] - Retail sell-through was slightly positive at +0.2%, indicating that sell-in led sell-through by nearly four percentage points [23] Market Data and Key Metrics Changes - The frozen category in Europe remains healthy, with growth recently accelerating, driven by improved volume and value gains [12][13] - The category has outgrown the overall food industry by nearly one percentage point over the past decade [12] Company Strategy and Development Direction - The company is focused on long-term health by continuing to invest in brands and products despite current headwinds [11] - A new master brand advertising campaign is set to launch, emphasizing the taste appeal and nutritional profile of frozen food brands, particularly in the fish category [17] Management's Comments on Operating Environment and Future Outlook - Management acknowledged headwinds from retailer inventory destocking and increased consumer value-seeking behavior, leading to a revised outlook for organic revenue growth [10][29] - The company expects organic sales to return to growth beginning in the second quarter, with profitable growth anticipated for the remainder of the year [23][31] Other Important Information - The company repurchased €49 million of shares and paid €25 million in dividends in the first quarter, marking a 152% increase in total cash returned to shareholders compared to the previous year [9][28] - Adjusted free cash flow conversion ratio fell to 24% due to higher working capital pressures [26] Q&A Session Summary Question: Impact of retailer destocking - Management noted that destocking was broad-based across 12 to 13 countries, with greater than expected impacts [36][37] Question: Outlook for category growth - Management confirmed that the category remains healthy, with expectations for market share growth despite some softness in the UK [40][41] Question: New product innovation and consumer shifts - Management indicated that new consumers are shifting from both smaller brands and private labels, with a focus on snacking occasions [48][51] Question: Input cost increases - Input costs are primarily rising in proteins, particularly chicken and red meat, due to demand and external factors like avian flu [58] Question: Pricing strategy amidst consumer trading down - Management acknowledged that consumers are seeking value, and pricing strategies will be a combination of various factors, including advertising and product innovation [64][66]

Financial Data and Key Metrics Changes - Reported net revenues decreased by 3% to €760 million, with organic sales declining by 3.6% and volume declining by 3.7% [23][24] - Gross margin increased by 90 basis points year on year to 27.8% [24] - Adjusted EBITDA decreased by 1.8% year on year to €120 million, while adjusted EPS fell by 5.4% to €0.35 due to net sales contraction [26][29] Business Line Data and Key Metrics Changes - Net sales for growth platforms rose by 36% year over year in the first quarter, with chicken performing particularly well [14] - Retail sell-through was slightly positive at +0.2%, indicating that sell-in led sell-through by nearly four percentage points [23] Market Data and Key Metrics Changes - The frozen category in Europe remains healthy, with growth recently accelerating driven by improved volume and value gains [11][12] - The UK market is experiencing some softness, particularly in the ice cream segment, which is expected to impact margins [41][68] Company Strategy and Development Direction - The company is focused on long-term health by continuing to invest in brands and products despite current headwinds [10][30] - A new master brand advertising campaign is set to launch, emphasizing the taste appeal and nutritional profile of frozen food brands, particularly in the fish category [16] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by retailer inventory destocking and increased consumer value-seeking behavior [9][10] - The full-year organic revenue, adjusted EBITDA, and adjusted EPS growth ranges have been lowered due to these challenges [10][29] Other Important Information - The company repurchased €49 million of shares and paid €25 million in dividends in the first quarter, marking a 152% increase in total cash returned to shareholders compared to the previous year [8][28] - The company expects to achieve profitable growth for the remainder of the year despite the current headwinds [23][31] Q&A Session Summary Question: Impact of retailer destocking - Management noted that destocking was broad-based across 12 to 13 countries and various segments, with greater than expected impacts [35][37] Question: Expectations for category growth and market share - Management indicated that the category remains healthy, with expectations for growth in the next quarters and a slight recovery in market share [39][40] Question: Insights on new product innovation and consumer shifts - Management highlighted that innovations are increasingly catering to snacking occasions, attracting new consumers from both frozen and fresh categories [47][50] Question: Input cost increases - Management clarified that input cost increases are primarily related to proteins, with no significant tariff impacts currently observed [58] Question: Pricing strategy amidst consumer trading down - Management acknowledged the volatility in consumer behavior and emphasized a balanced approach to pricing, innovation, and advertising [64][66] Question: Outlook for organic growth - Management expects a combination of volume and price growth, with volume growth anticipated in the second quarter and pricing strategies to kick in later [67][69]

Financial Performance - Total revenue was €760 million, a decrease of 3% year-over-year[22,25] - Organic revenue declined by 3.6%, lagging behind retail sell-through which grew by 0.2%[12,22] - Adjusted EBITDA decreased by 2% year-over-year to €120 million[12,25] - Adjusted EPS decreased by 5% year-over-year to €0.35[12,24,25] - Gross margin expanded by 90 bps year-over-year to 27.8%[12,22,25] Cash Flow and Capital Allocation - Share repurchases amounted to €48.9 million and dividend payments were €25.3 million, collectively up 152% year-over-year[12] - Adjusted free cash flow was €13 million, representing 24% of adjusted profit for the period[29] Guidance - The company tempered full year expectations given 1Q destocking, evolving macro environment and commitment to preserve brand and product investment[12] - Organic revenue growth guidance updated to 0-2% (previously +1-3%)[31] - Adjusted EBITDA growth guidance updated to 0-2% (previously +2-4%)[31] - Adjusted EPS guidance updated to €1.82 - €1.89 (previously €1.85-€1.89)[31]