Feltham, England-headquartered Nomad Foods reported a 1.5% increase in revenue to €539 million and a 37% hike in after-tax profit of €62 million during the first quarter of 2018, which ended on March 31. Organic revenue growth amounted to 2.9% and adjusted EPS growth was 40% for the producer, marketer and distributor of Birds Eye, Iglo, Findus and Goodfella’s frozen retail brands sold in 17 countries across Western Europe.
Gross profit increased 10% to €171 million, while gross margin expanded 240 basis points to 31.8% due to positive mix and improved pricing and promotional efficiency.
Adjusted operating expense decreased 2% to €78 million. Advertising and promotion expense increased 1% to €30 million, while indirect expense fell 4% to €48 million. Adjusted EBITDA advanced 16% to €103 million.
“These results, which reinforce the sustainability of our growth model, are attributable to the team’s focus and execution towards our goals of driving frozen food category growth and increasing our market share,” said CEO Stéfan Descheemaeke. “Based on our year-to-date performance and visibility into the balance of the year, we now expect 2018 guidance at the high end of our prior expectations.”
Noam Gottesman, the company’s co-chairman and founder, added: “It is a good time to be in the frozen food business. The category is growing across Western Europe and, in many cases, is out-pacing other packaged food categories. Our strong first quarter performance and plans for the remainder of 2018 put us on track to deliver another year of impressive financial results.”
