Feltham, England-based Nomad Foods, owner of the Birds Eye, Iglo, Findus and other frozen food brands, on February 27 reported a 7% increase in revenues to €2,324 million during 2019 along with a 2% rise in sales to €628 million during the fourth quarter that ended on December 31. Profits, however, declined 10% to £154 million for the year, while the fourth quarter profit of €46 million was down 27% compared with Q4 2018.
The company, which is active in 13 countries across Europe, saw annual sales climb 22% to €712.5 million in its biggest market, the United Kingdom. In Italy, which ranks second in sales, revenues of €394.1 million were up by 3%.
Nomad Foods retail brands, which include Goodfella’s, Aunt Bessie’s, La Cocinea and Lutosa Belviva, are often share leaders in their respective markets, ranking #1 or #2 in market share across 90% of the company’s core portfolio of frozen ready meals, vegetables, potatoes, fish and seafood dishes, pizza and other products.
Organic revenue growth overall was 1.7% for the quarter and 2.1% for the year, while adjusted earnings per share for the respective periods amounted to €0.32 (on +15% adjusted EBITA of €116 million) and €1.23 (on +15% in adjusted EBITA of €432 million).
“We achieved a third consecutive year of organic revenue growth and exceeded our guidance despite certain external challenges, namely raw material inflation and Brexit uncertainty,” said CEO Stéfan Descheemaeker.
He added: “We enter 2020 well positioned to deliver another year of profitable growth. Our expansion into Green Cuisine presents an attractive incremental growth opportunity within the fast growing meat-free segment. We also expect our supply chain productivity program to begin to drive meaningful cost savings and fuel growth. Finally, our strong balance sheet and cash flow provide us with the resources and flexibility to execute on our M&A strategy.”
Noam Gottesman, Nomad Foods’ co-chairman and founder, commented: “Fourth quarter and full year results reflect the strength and durability of our business model. We have an exciting year ahead and remain well positioned to sustain growth and continue to meet the needs of our consumers and our retail partners. We look forward to achieving another year of organic revenue growth and remain actively focused on acquisitions which, based on our balance sheet, have the potential to translate into significant earnings power.”
