WOKING, England – Nomad Foods Limited (NYSE: NYSE:), a leading European frozen food company with a market capitalization of $2.54 billion, has announced its performance update and strategic plans to maintain growth momentum. Currently trading near its 52-week low, InvestingPro analysis suggests the stock is undervalued. The company, which owns brands such as Birds Eye, Findus, and iglo, has reported a market share increase and expects to continue its trajectory of revenue and Adjusted EBITDA growth into its tenth year as a public entity.
For 2025, Nomad Foods anticipates organic revenue growth between 1% and 3%, building on its last twelve months’ revenue growth of 1.1%. The company expects Adjusted EBITDA growth of 2% to 4%, and Adjusted Earnings Per Share (EPS) in the range of €1.81 to €1.85. With a current P/E ratio of 12.68 and an attractive free cash flow yield of 13%, the company projects an adjusted free cash flow conversion rate of 90% or more. These expectations come despite plans for significant reinvestment into product and brand development.
CEO Stéfan Descheemaeker expressed confidence in the company’s direction, citing positive market share inflection in the latter half of 2024 and robust volume growth anticipated in the fourth quarter of 2024. Descheemaeker highlighted the company’s alignment with consumer trends, with over two-thirds of revenue expected from seafood, poultry, and vegetable products. He added that the frozen food category’s sustained volume growth provides a long-term advantage.
Nomad Foods’ strategy includes increasing investments in advertising, innovation, and renovation to drive growth for the company and its retail partners. The company intends to focus investments on higher margin areas and execute revenue growth management and productivity programs to ensure robust Adjusted EBITDA and free cash flow.
The company will present detailed results during its fourth-quarter earnings report and has scheduled a presentation at the 27th Annual ICR Conference in Orlando, FL, on Tuesday. The presentation will be available via live audio webcast on the company’s website. For investors seeking deeper insights, InvestingPro offers comprehensive analysis with additional ProTips and detailed financial metrics, including the company’s Pro Research Report, which provides expert analysis of key performance indicators and growth prospects.
This performance update and strategic outlook are based on a press release statement from Nomad Foods Limited. The company’s non-IFRS financial measures, such as Adjusted EBITDA and Adjusted EPS, are used to provide a consistent basis for assessing operating performance but are not intended to replace IFRS measures. The company has not provided a reconciliation of these non-IFRS measures to the most directly comparable IFRS measures, citing unreasonable efforts required to do so.
In other recent news, Nomad Foods Limited has seen a series of adjustments in its financial projections by two leading analyst firms. Mizuho (NYSE:) recently revised its price target for Nomad Foods to $24, maintaining an Outperform rating. This adjustment reflects caution due to potential macroeconomic pressures in Western Europe. Concurrently, Deutsche Bank (ETR:) adjusted its price target for the company to $22, reaffirming a Buy rating. Both firms’ revisions came in light of Nomad Foods’ recent Q3 2024 results, which included a slight increase in net revenues to EUR 770 million and a 0.3% organic growth.
Despite challenges from an upgrade to its Enterprise Resource Planning (ERP) system, Nomad Foods reported a 19% year-over-year increase in its EBITDA and a 28% increase in its adjusted earnings per share (EPS) to EUR 0.55. The company’s financial forecasts have been revised, with FY25 organic sales growth projections lowered to 2.3% from 3.3%, and FY25 EBITDA growth estimates adjusted to 4% from the previously expected 6%. Looking forward, Nomad Foods anticipates continued organic sales growth into 2025. These are the recent developments for Nomad Foods Limited.
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