Nomad Foods Q1: ~6% Revenue Growth, Expanding Margin & More

Nomad Foods Ltd NOMD reported first-quarter FY23 sales growth of 5.8% year-on-year to €775 million. Revenue of $831.9 million missed the consensus of $851.81 million.
Gross profit for the quarter climbed 9.5% Y/Y to €‎224 million. Gross margin increased 100 basis points to 28.9%, linked to the successful recovery of higher input costs through pricing, and a benefit in the cost of goods sold from the tail end of cover positions from 2022.
Operating margin was 10.3%, and operating income for the quarter fell 9.1% to €79.6 million.
The company held €370.9 million in cash and equivalents as of March 31, 2023.
Adjusted EBITDA for the quarter increased 11.3% to €146 million.
Adjusted EPS of $0.49 beat the consensus of $0.42.
Outlook: Nomad Foods raised the bottom end of its FY23 adjusted EPS outlook, with the new range at €1.52 - €1.55 (prior view €1.50 - €1.55).
Price Action: NOMD shares are trading lower by 1.07% at $19.42 on the last check Wednesday.

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