Nomad Foods (NOMD) Q3 2024 earnings summary

Executive summary

• Achieved ninth consecutive quarter of organic sales growth and second consecutive quarter of volume growth, with Q3 2024 revenue up 0.8% to €770 million and volume growth of 0.7%, despite a 2.5% ERP disruption headwind.

• Adjusted EBITDA rose 19% year-over-year to €166 million, driven by gross profit gains and offsetting higher SG&A expenses.

• Gross margin reached a record 32.3%, up 390 basis points year-over-year, supported by supply chain productivity, favorable mix, and promotional timing.

• Value and volume market share returned to growth despite ERP disruptions, with positive momentum into Q4 and 2025.

• Continued investment in brands, products, and people, driving innovation and market share recovery.

Financial highlights

• Q3 2024 revenue: €770 million (+0.8% YoY); organic revenue growth: 0.3%; volume growth: 0.7%.

• Q3 gross profit: €248 million (+14.5% YoY); gross margin: 32.3% (+390 bps YoY).

• Q3 Adjusted EBITDA: €166 million (+19.0% YoY); Adjusted EPS: €0.55 (+28% YoY); Adjusted profit for the period: €89 million (+22% YoY).

• Year-to-date adjusted free cash flow was €105 million, down due to higher working capital.

• Adjusted free cash flow as a percentage of adjusted profit for the period: 47% (down from 56% in the prior year period).

Outlook and guidance

• Full-year 2024 organic revenue growth guidance lowered to 1%-2% (from 3%-4%) due to ERP-related sales loss and conservative assumptions.

• Adjusted EBITDA growth expected at 3%-5%; Adjusted EPS guidance set at €1.72-€1.77 (7%-10% growth).

• Q4 guidance implies sequential sales acceleration but lower profit margin due to seasonal mix and reversal of promotional timing benefits.

• Adjusted free cash flow conversion guidance remains at 90%-95%.

• At midpoint, Q4 EBITDA and EPS growth expected at 10% and 19%, respectively.