Feltham, England-headquartered Nomad Foods, producer of Birds Eye, Findus and Iglo retail products and other name brands distributed widely in Europe, announced on December 8 that fourth quarter 2020 organic revenue growth is tracking ahead of management’s prior expectations, with organic revenue growth now projected to increase in the high-single digit percent range.
Organic revenue growth increased 10% through the first two months of Q4 and is forecast to remain above historical levels during the month of December. Nomad now expects to achieve 2020 Adjusted EBITDA of approximately €465 million and Adjusted EPS of about €1.34.
The company reported that it has repurchased over $95 million of its ordinary shares thus far in the fourth quarter, resulting in excess of $195 million of cumulative share repurchases year-to-date under its $300 million share repurchase plan authorized in March of 2020. This activity is in addition to the successful tender offer for $461 million of its ordinary shares completed in September.
In aggregate, Nomad Foods has returned over $655 million of capital to shareholders year-to-date. The company’s share count was approximately 176 million as of December 6, representing a 14% reduction versus the start of the year.
Comments from Top Management
“Our latest expectations have us on pace to achieve a 16th consecutive quarter of organic revenue growth and compounded annual Adjusted EPS growth of 12% since 2016,” stated CEO CEO Stéfan Descheemaeke. “These preliminary results reinforce the focus and commitment of our entire organization to perform at a high level amidst a global pandemic. We are proud of the track record that we are establishing as a premier packaged food company delivering sustained organic growth, strong free cash conversion and accretive capital deployment. Equally, we are excited by our growth prospects – organically and inorganically.”
Noam Gottesman, Nomad Foods’ co-chairman and founder, added: “We are delighted to end the year on a strong note and are firmly on track to achieve the long-term financial targets that we shared at our Investor Day just last month, including €2.30 of Adjusted EPS by 2025.”
Preliminary results for the first two quarters of Q4 are based on management’s initial analysis of operations for the period and are subject to change. The company’s actual financial results could differ materially from the preliminary estimates as a result of the completion of closing procedures, final adjustments, or other developments arising between now and the time that the Nomad Foods’ financial results are finalized. The company cautions that its results for the two-month period may not be indicative of results for future periods.
