Nomad Foods Surges On Q4 Earnings Beat; Raises Annual EPS Outlook

Nomad Foods Ltd NOMD shares are trading higher in premarket on Monday after the fourth-quarter FY24 earnings.

The company reported fourth-quarter FY24 sales growth of 4.3% year-on-year to 793 million euros ($846.79 million), beating the analyst consensus estimate of $788.03 million.

Adjusted EPS of 0.42 euro ($0.46) beat the consensus estimate of $0.37.

Gross profit increased 9% to 226 million euros and the gross profit margin expanded 120 basis points to 28.5%. The operating income climbed 37.2% to 91.5 million euros with an operating margin of 11.5%.

Adjusted EBITDA increased by 17.6% to 137 million euros. The company held 403.3 million euros in cash and equivalents as of December 31, 2024. Operating cash flow for twelve months totaled 435.4 million euros.

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“Our 2024 results demonstrate the impact of our focused brand investments and operational excellence, marking our ninth consecutive year of sales and Adjusted EBITDA growth,” said CEO Stéfan Descheemaeker.

“Growth can be choppy month-to-month and quarter-to-quarter but the underlying trendline of improvement is evident in our results. We significantly strengthened our innovation engine, increasing our innovation as a percent of sales year-over-year, while executing more impactful merchandising programs that resonated with consumers at point-of-sale. Importantly, we accomplished this while expanding margins through a combination of supply chain productivity initiatives and focused growth investments that yielded healthy mix gains.”

Outlook 2025: Nomad Foods continues to expect organic revenue growth of 1% – 3% and Adjusted EBITDA growth of 2% – 4%.

The company raised the adjusted EPS outlook to 1.85 – 1.89 euro from 1.81 – 1.85 euro. Based on USD/EUR exchange rate as of February 25, 2025, this translates into 2025 Adjusted EPS of $1.94 – $1.98.

Price Action: NOMD shares are trading higher by 7.35% at $20.28 in premarket at last check Monday.

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Image: Shutterstock/ SeventyFour.