Nomad Foods(NOMD) - 2025 Q4 - Earnings Call Transcript

Financial Data and Key Metrics Changes - The company reported a full-year organic sales decline of 1.9%, which was in line with expectations [3] - Adjusted EBITDA decreased by 7.5%, slightly below the guidance range, while adjusted EPS was EUR 1.66, within the expected range [3][20] - For the fourth quarter, organic revenue declined by 1.3%, an improvement from the previous quarter [4] - Adjusted gross margin compressed by 240 basis points year-on-year, although this was an improvement from the previous quarter's decline [23] Business Line Data and Key Metrics Changes - The company experienced a decline in value market share by 30 basis points for the full year, with volume share remaining unchanged [8] - Retail sellout grew by 0.4% for the full year, with a 0.7% increase in the fourth quarter [17] - Adjusted operating expenses decreased by 15% in the fourth quarter, with advertising and promotion expenses down significantly [24] Market Data and Key Metrics Changes - The overall category growth for the company was 2.3% for the full year, consistent with historical growth rates [7] - The company commands a market share that is 2.3 times larger on average than the next largest branded competitor in its top 25 core category country combinations [6] Company Strategy and Development Direction - The company is entering a pivotal year of strategic repositioning to improve performance and unlock potential [5] - There is a focus on enhancing speed, agility, and accountability within the organization to better respond to market dynamics [10][12] - The company plans to implement a comprehensive value creation plan and will provide a detailed roadmap later in the year [9] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges faced in 2025 but emphasized the solid fundamentals and strengths of the business [5] - The company expects 2026 to be a transition year with anticipated disruptions, particularly in the first quarter [30] - Management expressed confidence in the company's ability to leverage its strengths and deliver top-tier financial results in the future [32] Other Important Information - The company repurchased EUR 44.2 million worth of shares in the fourth quarter, totaling EUR 195.6 million for the full year [4][20] - Adjusted free cash flow conversion was 73% for the year, with expectations for improvement in 2026 [26] Q&A Session Summary Question: What are the expectations for 2026? - The company expects full-year organic revenue to decline by 2%-5%, with the first quarter anticipated to be below the low end of that range due to various factors [30] - Adjusted EPS is projected to be in the range of EUR 1.45-EUR 1.60, reflecting a year-on-year decline [31]