Company Raises 2017 Guidance
Nomad Foods Limited (NYSE: NOMD), today reported financial
results for the three and nine month periods ended
September 30, 2017. Key operating highlights and financial
performance for the third quarter 2017, when compared to the third
quarter 2016, include:
- Reported revenue increased 4.4% to
€459 million
- Organic revenue growth of
5.9%
- Reported Profit for the period of
€42 million
- Adjusted EBITDA decreased 8% to €79
million
- Reported EPS of €0.24; Adjusted EPS
increased 9% to €0.24
- Company raises 2017 Adjusted EBITDA
guidance to approximately €325 to €327 million
Management Comments
Stéfan Descheemaeker, Nomad Foods’ Chief Executive Officer,
stated, “We experienced strong growth in the third quarter with
revenue, gross margin and adjusted EBITDA exceeding our
expectation. Results, including 5.9% organic revenue growth,
reflect favorable category performance coupled with market share
gains. We are pleased by the momentum in the business, with Q3
representing a third consecutive quarter of organic revenue growth
and market share expansion. Based on our year-to-date performance,
we are raising our 2017 guidance.”
Noam Gottesman, Nomad Foods’ Co-Chairman and Founder, commented,
“Third quarter results reflect another quarter of solid execution
and further validation of our growth strategy. Our momentum is
underpinned by a strong balance sheet and a portfolio of iconic,
market leading brands. As a result, we continue to be encouraged by
our growth prospects within European frozen and beyond."
Third Quarter of 2017 results compared to the Third Quarter
of 2016
- Revenue increased 4.4% to €459
million. Organic revenue growth of 5.9% was driven by 4.1%
growth in volume/mix and 1.8% growth in price.
- Gross profit increased 8.6% to
€139 million. Gross margin expanded 120 basis points to 30.3%
driven by positive mix and improved pricing and promotional
efficiency.
- Adjusted Operating expense
increased 27% to €71 million. Advertising and promotion expense
increased 3% to €23 million. Indirect expense increased 43% to €49
million as the quarterly bonus accrual in the current period
compared to the reversal of the year-to-date bonus accrual in the
prior year period.
- Adjusted EBITDA decreased 8% to
€79 million due to the aforementioned factors. Foreign exchange
currency translation adversely affected adjusted EBITDA by €1
million.
- Adjusted Profit after tax
increased 2% to €42 million reflecting interest rate savings and
lower depreciation and amortization. Adjusted EPS increased
9% to €0.24, reflecting Adjusted Profit growth and a lower share
count.
First Nine Months of 2017 results compared to the First Nine
Months of 2016
- Revenue increased 0.4% to €1,448
million. Organic revenue growth of 3.3% was driven by 2.6%
growth in volume/mix and 0.7% growth in price.
- Gross profit increased 1.0% to
€439 million. Gross margin expanded 10 basis points to 30.3% as
positive mix and improved pricing and promotional efficiencies were
offset by currency driven inflation. Foreign exchange currency
translation adversely impacted gross margin by 20 basis
points.
- Adjusted Operating expense
increased 7% to €225 million. Advertising and promotion expense
increased 3% to €78 million. Indirect expense increased 10% to €147
million as the bonus accrual in the current period compared to the
reversal of the year-to-date bonus accrual in the prior year
period.
- Adjusted EBITDA decreased 6% to
€247 million due to the aforementioned factors. Foreign exchange
currency translation adversely affected adjusted EBITDA by €9
million.
- Adjusted Profit after tax
decreased 1% to €130 million. Adjusted EPS was unchanged at
€0.72 reflecting Adjusted Profit decline and a lower share
count.
2017 GuidanceThe Company raises its 2017 Adjusted EBITDA
outlook to a range of approximately €325 to €327 million versus the
prior expectation of approximately €320 to €325 million. Full year
guidance now assumes organic revenue growth of approximately 3%
versus the prior expectation of growth at a low-single digit
percentage rate.
Conference Call and WebcastThe Company will host a
conference call with members of the executive management team to
discuss these results today, Tuesday, November 28, 2017 at 1:30
p.m. GMT time (8:30 a.m. Eastern time). Investors interested in
participating in the live call can dial +1-888-778-9064 from the
U.S. International callers can dial +1-719-325-4870.
In addition, the call will be broadcast live over the internet
hosted at the “Investor Relations” section of the Company’s website
at http://www.nomadfoods.com. The webcast will be archived
for 30 days. A replay of the conference call will be available on
the Company website for two weeks following the event and can be
accessed by listeners in North America by dialing +1-844-512-2921
and by international listeners by dialing +1-412-317-6671; the
replay pin number is 7162444.
About Nomad FoodsNomad Foods (NYSE: NOMD) is a leading
frozen foods company building a global portfolio of best-in-class
food companies and brands within the frozen category and across the
broader food sector. Nomad Foods produces, markets and distributes
brands in 17 countries and has the leading market share in Western
Europe. The Company’s portfolio of leading frozen food brands
includes Birds Eye, Iglo, and Findus. More information on Nomad
Foods Limited is available at http://www.nomadfoods.com.
Non-IFRS Financial InformationNomad Foods is presenting
Adjusted and Organic financial information, which is considered
non-IFRS financial information, for the three and nine months ended
September 30, 2017 and for comparative purposes, the three and
nine months ended September 30, 2016.
Adjusted financial information for the three and nine months
ended September 30, 2017 and 2016 presented in this press
release reflects the historical reported financial statements of
Nomad Foods, adjusted primarily for share based payment charges,
exceptional items and foreign currency exchange charges/gains.
EBITDA is profit or loss for the period before taxation, net
financing costs, depreciation and amortization. Adjusted EBITDA is
EBITDA adjusted to exclude (when they occur) exited markets,
trading day impacts, chart of account (“CoA”) alignments and
exceptional items such as restructuring charges, goodwill and
intangible asset impairment charges, the impact of share based
payment charges, charges relating to the Founders Preferred Shares
Annual Dividend Amount, charges relating to the redemption of
warrants and other unusual or non-recurring items. The Company
believes Adjusted EBITDA provides important comparability of
underlying operating results, allowing investors and management to
assess operating performance on a consistent basis.
Adjusted EBITDA should not be considered as an alternative to
profit/(loss) for the period, determined in accordance with IFRS,
as an indicator of the Company’s operating performance.
Adjusted EPS is defined as basic earnings per share excluding,
when they occur, the impacts of exited markets, trading day
impacts, chart of account (“CoA”) alignments and exceptional items
such as restructuring charges, goodwill and intangible asset
impairment charges, share based compensation expense, unissued
preferred share dividends, and other non-operating items as well as
certain other items considered unusual or non-recurring in nature.
The Company believes Adjusted EPS provides important comparability
of underlying operating results, allowing investors and management
to assess operating performance on a consistent basis.
Organic revenue for the three and nine months ended
September 30, 2017 and 2016 presented in this press release
reflects reported revenue adjusted for currency translation and
non-comparable trading items such as expansion, acquisitions,
disposals, closures, chart of account (“CoA”) alignments, trading
day impacts or any other event that artificially impact the
comparability of our results.
Adjustments for currency translation are calculated by
translating data of the current and comparative periods using a
budget foreign exchange rate that is set once a year as part of the
Company's internal annual forecast process.
Adjusted and Organic non-IFRS financial information should be
read in conjunction with the unaudited financial statements of
Nomad Foods included in this press release as well as the
historical financial statements of the Company previously filed
with the SEC.
Nomad Foods believe its non-IFRS financial measures provide an
important additional measure with which to monitor and evaluate the
Company’s ongoing financial results, as well as to reflect its
acquisitions. Nomad Foods’ calculation of these financial measures
may be different from the calculations used by other companies and
comparability may therefore be limited. The Adjusted and Organic
financial information presented herein is based upon certain
assumptions that Nomad Foods believes to be reasonable and is
presented for informational purposes only and is not necessarily
indicative of any anticipated financial position or future results
of operations that the Company will experience. You should not
consider the Company’s non-IFRS financial measures an alternative
or substitute for the Company’s reported results and are cautioned
not to place undue reliance on these results and information as
they may not be representative of our actual or future results as a
Company.
Please see on pages 8 to 16, the non-IFRS reconciliation tables
attached hereto and the schedules accompanying this release for an
explanation and reconciliation of the Adjusted and Organic
financial information to the most directly comparable IFRS
measure.
Nomad Foods Limited As Reported Statements of
Profit or Loss (unaudited) Three months ended September 30,
2017 and September 30, 2016
Three months endedSeptember 30,
2017
Three months endedSeptember 30,
2016
€ millions € millions Revenue 459.0 439.5 Cost of
sales (320.0 ) (311.5 )
Gross profit 139.0
128.0 Other operating expenses (71.4 ) (56.1 ) Exceptional
items (5.4 ) (34.1 )
Operating profit 62.2
37.8 Finance income 3.9 5.6 Finance costs (12.5 ) (21.9 )
Net financing costs (8.6 ) (16.3
) Profit before tax 53.6 21.5 Taxation
(11.7 ) (17.9 )
Profit for the period 41.9
3.6 Basic earnings per share Profit for the
period in € millions 41.9 3.6 Weighted average shares outstanding
in millions 172.4 183.6
Basic earnings per share in €
0.24 0.02 Diluted earnings per share Profit
for the period in € millions 41.9 3.6 Weighted average shares
outstanding in millions 172.4 183.6
Diluted earnings per share
in € 0.24 0.02 Nomad Foods
Limited As Reported Statements of Profit or Loss
(unaudited) Nine months ended September 30, 2017 and
September 30, 2016
Nine months endedSeptember 30,
2017
Nine months endedSeptember 30,
2016
€ millions € millions Revenue 1,448.4 1,442.5 Cost of
sales (1,009.0 ) (1,007.4 )
Gross profit 439.4
435.1 Other operating expenses (227.6 ) (210.9 ) Exceptional
items (16.8 ) (112.3 )
Operating profit 195.0
111.9 Finance income 9.2 24.8 Finance costs (66.2 ) (64.7 )
Net financing costs (57.0 ) (39.9
) Profit before tax 138.0 72.0 Taxation
(28.8 ) (33.5 )
Profit for the period 109.2
38.5 Basic earnings per share Profit for the
period in € millions 109.2 38.5 Weighted average shares outstanding
in millions 179.2 183.4
Basic earnings per share in €
0.61 0.21 Diluted earnings per share Profit
for the period in € millions 109.2 38.5 Weighted average shares
outstanding in millions 179.2 183.4
Diluted earnings per share
in € 0.61 0.21 Nomad Foods
Limited As Reported Statements of Financial Position
As at September 30, 2017 (unaudited) and December 31, 2016
(audited) As at September 30,
2017 As at December 31, 2016 € millions €
millions Non-current assets Goodwill 1,745.6 1,745.6
Intangibles 1,723.4 1,726.6 Property, plant and equipment 293.6
298.2 Other receivables 1.3 0.4 Derivative financial instruments
18.7 — Deferred tax assets 68.0 64.9
Total
non-current assets 3,850.6 3,835.7
Current assets Cash and cash equivalents 178.1 329.5
Inventories 330.6 325.0 Trade and other receivables 142.3 135.7
Indemnification assets 73.8 65.5 Capitalized borrowing costs — 5.0
Derivative financial instruments 6.0 13.1
Total
current assets 730.8 873.8 Total
assets 4,581.4 4,709.5 Current
liabilities Trade and other payables 459.2 472.7 Current tax
payable 158.3 162.3 Provisions 78.8 116.7 Current portion of loans
and borrowings 4.1 — Derivative financial instruments 11.7
1.4
Total current liabilities 712.1
753.1 Non-current liabilities Loans and
borrowings 1,403.8 1,451.8 Employee benefits 187.8 190.9 Trade and
other payables 1.8 1.0 Provisions 74.8 77.0 Derivative financial
instruments 54.8 — Deferred tax liabilities 327.5 333.2
Total non-current liabilities 2,050.5
2,053.9 Total liabilities 2,762.6
2,807.0 Net assets 1,818.8
1,902.5 Equity attributable to equity
holders Share capital — — Capital reserve 1,623.7 1,800.7 Share
based compensation reserve 2.7 1.0 Founder Preferred Share Dividend
reserve 493.4 493.4 Translation reserve 80.1 84.0 Cash flow hedging
reserve (7.9 ) 8.4 Accumulated deficit (373.2 ) (485.0 )
Total
equity 1,818.8 1,902.5
Nomad Foods Limited As Reported Statements of Cash
Flows (unaudited) For the nine months ended September 30,
2017 and the nine months ended September 30, 2016
For the nine months
endedSeptember 30, 2017
For the nine months
endedSeptember 30, 2016
€ millions € millions Cash flows from operating
activities Profit for the period 109.2
38.5 Adjustments for: Exceptional items 16.8 112.3 Share
based payment expense 2.4 0.8 Depreciation and amortization 32.4
37.8 Loss on disposal of property, plant and equipment 0.2 0.4
Finance costs 66.2 64.7 Finance income (9.2 ) (24.8 ) Taxation 28.8
33.5
Operating cash flow before changes in working
capital, provisions and exceptional items 246.8
263.2 Increase in inventories (9.0 ) (25.0 ) Increase in
trade and other receivables (8.1 ) (9.9 ) (Decrease)/increase in
trade and other payables (7.7 ) 6.6 Increase/(decrease) in employee
benefits and other provisions 2.0 (2.5 )
Cash generated
from operations before tax and exceptional items 224.0
232.4 Cash flows relating to exceptional items (71.3 ) (40.7
) Tax paid (32.2 ) (7.7 )
Net cash generated from operating
activities 120.5 184.0 Cash
flows from investing activities Contingent consideration for
purchase of Frudesa brand — (8.0 ) Purchase of property, plant and
equipment (26.0 ) (17.7 ) Purchase of intangibles (2.5 ) (0.5 )
Cash used in investing activities (28.5 )
(26.2 ) Cash flows from financing activities
Repurchase of ordinary shares (177.6 ) — Issuance of new loan
principal 1,470.5 — Repayment of loan principal (1,469.5 ) —
Payment of finance leases (1.6 ) (0.6 ) Loss on settlement of
derivatives (2.4 ) (3.4 ) Payment of financing fees (13.6 ) —
Interest paid (32.9 ) (53.2 ) Interest received 0.3 8.4
Net cash used in financing activities (226.8
) (48.8 ) Net (decrease)/increase in cash
and cash equivalents (134.8 ) 109.0
Cash and cash equivalents at beginning of period
329.5 186.1 Effect of exchange rate fluctuations
(16.6 ) (26.3 )
Cash and cash equivalents at end of
period(a) 178.1 268.8
(a) Cash and cash equivalents comprise cash at bank of €178.1
million (September 30, 2016: cash at bank of €271.0 million
less bank overdrafts of €2.2 million).
Nomad Foods LimitedAdjusted Financial
Information(In € millions, except per share data)
The following table reconciles Adjusted financial information
for the three months ended September 30, 2017 to the reported
results of Nomad Foods for such period.
Adjusted Statements of Profit or Loss (unaudited)
Three Months Ended September 30, 2017
€ in millions, except per share data
As reported for thethree months
endedSeptember 30, 2017
Adjustments
As Adjusted for thethree months
endedSeptember 30, 2017
Revenue 459.0 — 459.0
Cost of sales
(320.0 ) — (320.0 )
Gross profit 139.0
— 139.0 Other operating expenses (71.4 ) 0.3 (a)
(71.1 ) Exceptional items (5.4 ) 5.4 (b) —
Operating profit 62.2 5.7 67.9 Finance
income 3.9 (3.8 ) 0.1 Finance costs (12.5 ) (0.9 ) (13.4 )
Net
financing costs (8.6 ) (4.7 ) (c)
(13.3 ) Profit before tax 53.6
1.0 54.6 Taxation (11.7 ) (0.9 ) (d) (12.6 )
Profit for the period 41.9 0.1
42.0 Weighted average shares outstanding in millions
- basic 172.4 172.4
Basic earnings per share 0.24
0.24 Weighted average shares outstanding in millions -
diluted 172.4 172.4
Diluted earnings per share 0.24
0.24
(a) Adjustment to add back share based payment charge.(b)
Adjustment to add back exceptional items which management believes
are non-recurring and do not have a continuing impact. See
table ‘EBITDA and Adjusted EBITDA (unaudited) three months ended
September 30, 2017’ for a detailed list of exceptional items.(c)
Adjustment to eliminate €0.3 million of non-cash foreign exchange
translation gains and €4.4 million of foreign exchange gains on
derivatives.(d) Adjustment to reflect the tax impact of the above
at the applicable tax rate for each adjustment, determined by the
nature of the item and the jurisdiction in which it arises.
Nomad Foods LimitedAdjusted Financial
Information(In € millions)
The following table reconciles EBITDA and Adjusted EBITDA for
the three months ended September 30, 2017 to the reported results
of Nomad Foods for such period.
EBITDA and Adjusted EBITDA (unaudited) Three
Months Ended September 30, 2017 € in millions
Three months endedSeptember 30,
2017
Profit for the period 41.9 Taxation 11.7 Net
financing costs 8.6 Depreciation 8.6 Amortization 2.0
EBITDA 72.8 Exceptional items: Investigation and
implementation of strategic opportunities and other items 3.1 (a)
Findus Group integration costs 2.3 (b) Other Adjustments: Share
based payment charge 0.3 (c)
Adjusted EBITDA(d)
78.5
(a) Elimination of costs incurred in relation to investigation
and implementation of strategic opportunities and other items
considered non-recurring for the combined group following
acquisitions by the Company. These costs include commercial
reorganization of the combined businesses and settlements.(b)
Elimination of non-recurring costs related to the integration of
the Findus Group, primarily relating to the rollout of the Nomad
ERP system.(c) Elimination of share based payment charge.(d)
Adjusted EBITDA margin of 17.1% for the three months ended
September 30, 2017 is calculated by dividing Adjusted EBITDA by
Adjusted revenue of €459.0 million per page 8.
Nomad Foods LimitedAdjusted Financial
Information(In € millions, except per share data)
The following table reconciles Adjusted financial information
for the three months ended September 30, 2016 to the reported
results of Nomad Foods for such period.
Adjusted Statements of Profit or Loss
(unaudited)
Three Months Ended September 30,
2016
€ in millions, except per share data
As reported for thethree months
endedSeptember 30, 2016
Adjustments
As Adjusted for thethree months
endedSeptember 30, 2016
Revenue 439.5 — 439.5 Cost of sales (311.5 ) — (311.5 )
Gross profit 128.0 — 128.0 Other
operating expenses (56.1 ) 0.2 (a) (55.9 ) Exceptional items (34.1
) 34.1 (b) —
Operating profit 37.8
34.3 72.1 Finance income 5.6 (4.0 ) 1.6 Finance costs
(21.9 ) 1.2 (20.7 )
Net financing costs (16.3
) (2.8 ) (c)
(19.1 ) Profit
before tax 21.5 31.5 53.0 Taxation (17.9 )
6.1 (d) (11.8 )
Profit for the period 3.6
37.6 41.2 Weighted average
shares outstanding in millions - basic 183.6 183.6
Basic
earnings per share 0.02 0.22 Weighted average
shares outstanding in millions - diluted 183.6 183.6
Diluted
earnings per share 0.02 0.22
(a) Adjustment to add back share based payment charge(b)
Adjustment to add back exceptional items which management believes
do not have a continuing impact. See table ‘EBITDA and Adjusted
EBITDA (unaudited) three months ended September 30, 2016’ for a
detailed list of exceptional items.(c) Adjustment to eliminate €4.0
million of non-cash foreign exchange translation gains and €1.2
million foreign exchange loss on derivatives.(d) Adjustment to
reflect the tax impact of the above at the applicable tax rate for
each exceptional item, determined by the nature of the item and the
jurisdiction in which it arises.
Nomad Foods LimitedAdjusted Financial
Information(In € millions)
The following table reconciles EBITDA and Adjusted EBITDA for
the three months ended September 30, 2016 to the reported results
of Nomad Foods for such period.
EBITDA and Adjusted EBITDA
(unaudited)
Three Months Ended September 30,
2016
€ in millions
Three months endedSeptember 30,
2016
Profit for the period 3.6 Taxation 17.9 Net financing
costs 16.3 Depreciation 11.3 Amortization 1.7
EBITDA
50.8 Exceptional items: Costs related to transactions 1.3
(a) Cisterna fire costs 0.1 (b) Investigation and implementation of
strategic opportunities and other items 1.8 (c) Supply chain
reconfiguration 35.2 (d) Other restructuring costs 0.8 (e) Findus
Group integration costs 12.5 (f) Remeasurement of indemnification
assets (17.6 ) (g) Other Adjustments: Share based payment charge
0.2 (h)
Adjusted EBITDA(i) 85.1
(a) Elimination of costs incurred in relation to completed
acquisitions.(b) Adjustment to add back incremental costs incurred
as a result of an August 2014 fire in the Iglo Group’s Italian
production facility.(c) Elimination of costs incurred in relation
to investigation and implementation of strategic opportunities and
other items considered non-recurring for the combined group
following acquisitions by the Company. These costs include
commercial reorganization of the combined businesses and
professional fees on pre-existing tax audits.(d) Elimination of
supply chain reconfiguration costs, namely the closure of the Bjuv
factory.(e) Elimination of other restructuring costs associated
with operating locations.(f) Elimination of costs recognized by
Nomad Foods relating to the integration of the Findus Group.(g)
Adjustment to reflect the remeasurement of the indemnification
assets recognized on the acquisition of the Findus Group, which is
capped at the value of shares held in escrow at the share price as
at June 30, 2016.(h) Elimination of share based payment charge.(i)
Adjusted EBITDA margin 19.4% for the three months ended September
30, 2016 is calculated by dividing Adjusted EBITDA by Adjusted
revenue of €439.5 million per page 10.
Nomad Foods LimitedAdjusted Financial
Information(In € millions, except per share data)
The following table reconciles Adjusted financial information
for the nine months ended September 30, 2017 to the reported
results of Nomad Foods for such period.
Adjusted Statements of Profit or Loss (unaudited)
Nine Months Ended September 30, 2017 € in
millions, except per share data
As reported for thenine months
endedSeptember 30, 2017
Adjustments
As Adjusted for thenine months
endedSeptember 30, 2017
Revenue 1,448.4 — 1,448.4 Cost of sales (1,009.0 ) —
(1,009.0 )
Gross profit 439.4 — 439.4
Other operating expenses (227.6 ) 2.4 (a) (225.2 ) Exceptional
items (16.8 ) 16.8 (b) —
Operating profit
195.0 19.2 214.2 Finance income 9.2 (8.9 ) 0.3
Finance costs (66.2 ) 20.2 (46.0 )
Net financing
costs (57.0 ) 11.3 (c)
(45.7
) Profit before tax 138.0 30.5
168.5 Taxation (28.8 ) (10.0 ) (d) (38.8 )
Profit for the
period 109.2 20.5 129.7
Weighted average shares outstanding in millions - basic
179.2 179.2
Basic earnings per share 0.61 0.72
Weighted average shares outstanding in millions - diluted 179.2
179.2
Diluted earnings per share 0.61 0.72
(a) Adjustment to add back share based payment charge.(b)
Adjustment to eliminate exceptional items which management believes
are non-recurring and do not have a continuing impact. See
table ‘EBITDA and Adjusted EBITDA (unaudited) nine months ended
September 30, 2017’ for a detailed list of exceptional items.(c)
Adjustment to eliminate €19.5 million of costs incurred as part of
the refinancing on the May 3, 2017, €2.2 million of foreign
exchange translation losses and €10.4 million of foreign currency
gains on derivatives.(d) Adjustment to reflect the tax impact of
the above at the applicable tax rate for each adjustment,
determined by the nature of the item and the jurisdiction in which
it arises.
Nomad Foods LimitedAdjusted Financial
Information(In € millions)
The following table reconciles EBITDA and Adjusted EBITDA for
the nine months ended September 30, 2017 to the reported results of
Nomad Foods for such period:
EBITDA and Adjusted EBITDA
(unaudited)
Nine Months Ended September 30,
2017
€ in millions
Nine months endedSeptember 30,
2017
Profit for the period 109.2 Taxation 28.8 Net
financing costs 57.0 Depreciation 26.6 Amortization 5.8
EBITDA 227.4 Exceptional items: Costs related to
transactions 2.5 (a) Investigation and implementation of strategic
opportunities and other items 14.6 (b) Findus Group integration
costs 8.0 (c) Remeasurement of indemnification assets (8.3 ) (d)
Other Adjustments: Share based payment charge 2.4 (e)
Adjusted EBITDA(f) 246.6
(a) Elimination of costs incurred in relation to completed and
potential acquisitions and one-off compliance costs incurred as a
result of listing on the New York Stock Exchange.(b) Elimination of
costs incurred in relation to investigation and implementation of
strategic opportunities and other items considered non-recurring
for the combined group following acquisitions by the Company. These
costs include commercial reorganization of the combined businesses
and settlements of pre-existing tax audits.(c) Elimination of
non-recurring costs related to the integration of the Findus Group,
primarily relating to the rollout of the Nomad ERP system.(d)
Adjustments to reflect the remeasurement of the indemnification
assets recognized on the acquisition of the Findus Group, which is
capped at the value of shares held in escrow at the share price as
at September 30, 2017. Offsetting are the release of
indemnification assets associated with final settlement of
indemnity claims against an affiliate of Permira Advisors LLP,
which are legacy tax matters that predate the Company's acquisition
of Iglo Group in 2015.(e) Elimination of share based payment
charge.(f) Adjusted EBITDA margin of 17.0% for the nine months
ended September 30, 2017 is calculated by dividing Adjusted EBITDA
by Adjusted revenue of €1,448.4 million per page 12.
Nomad Foods LimitedAdjusted Financial
Information(In € millions, except per share data)
The following table reconciles Adjusted financial information
for the nine months ended September 30, 2016 to the reported
results of Nomad Foods for such period:
Adjusted Statements of Profit or Loss (unaudited)
Nine Months Ended September 30, 2016 € in
millions, except per share data
As reported for thenine months
endedSeptember 30, 2016
Adjustments
As Adjusted for thenine months
endedSeptember 30, 2016
Revenue 1,442.5 — 1,442.5
Cost of sales
(1,007.4 ) — (1,007.4 )
Gross profit 435.1
— 435.1 Other operating expenses (210.9 ) 0.8 (a)
(210.1 ) Exceptional items (112.3 ) 112.3 (b) —
Operating profit 111.9 113.1 225.0
Finance income 24.8 (18.5 ) 6.3 Finance costs (64.7 ) 3.4
(61.3 )
Net financing costs (39.9 )
(15.1 ) (c)
(55.0 ) Profit before
tax 72.0 98.0 170.0 Taxation (33.5 ) (5.2
) (d) (38.7 )
Profit for the period 38.5
92.8 131.3 Weighted average shares
outstanding in millions - basic 183.4 183.4
Basic earnings per
share 0.21 0.72 Weighted average shares
outstanding in millions - diluted 183.4 183.4
Diluted earnings
per share 0.21 0.72
(a) Adjustment to add back share based payment charge(b)
Adjustment to add back exceptional items which management believes
do not have a continuing impact. See table ‘EBITDA and Adjusted
EBITDA (unaudited) nine months ended September 30, 2016’ for a
detailed list of exceptional items.(c) Adjustment to eliminate
€18.5 million of non-cash foreign exchange translation gains and
€3.4 million foreign exchange loss on derivatives.(d) Adjustment to
reflect the tax impact of the above at the applicable tax rate for
each adjustment, determined by the nature of the item and the
jurisdiction in which it arises.
Nomad Foods LimitedAdjusted Financial
Information(In € millions)
The following table reconciles EBITDA and Adjusted EBITDA for
the nine months ended September 30, 2016 to the reported results of
Nomad Foods for such period:
EBITDA and Adjusted EBITDA (unaudited) Nine Months
Ended September 30, 2016 € in millions
Nine months endedSeptember 30,
2016
Profit for the period 38.5 Taxation 33.5 Net
financing costs 39.9 Depreciation 32.8 Amortization 5.0
EBITDA 149.7 Exceptional items: Costs related to
transactions 3.0 (a) Costs related to management incentive plans
1.9 (b) Investigation and implementation of strategic opportunities
and other items 7.2 (c) Cisterna fire costs 0.4 (d) Supply chain
reconfiguration 74.9 (e) Other restructuring costs (0.1 ) (f)
Findus Group integration costs 25.0 (g) Remeasurement of
indemnification assets — (h) Other Adjustments: Share based payment
charge 0.8 (i)
Adjusted EBITDA(j) 262.8
(a) Elimination of costs incurred in relation to completed and
potential acquisitions.(b) Adjustment to eliminate long term
management incentive scheme costs from prior ownership.(c)
Elimination of costs incurred in relation to investigation and
implementation of strategic opportunities and other items
considered non-recurring for the combined group following
acquisitions by the Company. These costs include commercial
reorganization of the combined businesses and professional fees on
pre-existing tax audits.(d) Adjustment to add back incremental
costs incurred as a result of an August 2014 fire in the Iglo
Group’s Italian production facility.(e) Elimination of supply chain
reconfiguration costs, namely the closure of the Bjuv factory.(f)
Elimination of other restructuring costs associated with operating
locations.(g) Elimination of costs recognized by Nomad Foods
relating to the integration of the Findus Group.(h) Adjustment to
reflect the remeasurement of the indemnification assets recognized
on the acquisition of the Findus Group, which is capped at the
value of shares held in escrow at the share price as at June 30,
2016.(i) Elimination of share based payment charge.(j) Adjusted
EBITDA margin 18.2% for the nine months ended September 30, 2016 is
calculated by dividing Adjusted EBITDA by Adjusted revenue of
€1,442.5 million per page 14.
Nomad Foods LimitedAdjusted Financial Information
(continued)
Appendix 1: Reconciliation from reported to organic
revenue growth
Year on Year Growth - Three and nine months
September 30, 2017 compared with September 30,
2016:
Three Months EndedSeptember 30,
2017
Nine Months EndedSeptember 30,
2017
YoY Growth YoY Growth Reported Revenue Growth
4.4 % 0.4 % Trading Day Impact — % 0.7
% Translational FX (a) 1.5 % 2.2 %
Organic Revenue Growth
5.9 % 3.3 %
(a) Translational FX is calculated by translating data of the
current and comparative periods using a budget foreign exchange
rate that is set once a year as part of the Company's internal
annual forecast process.
Forward-Looking
Statements
Forward-Looking Statements and Disclaimers
Certain statements in this announcement are forward-looking
statements which are based on the Company’s expectations,
intentions and projections regarding its future performance,
anticipated events or trends and other matters that are not
historical facts, including expectations regarding (i) the
Company’s ability to expand its presence in the frozen foods
market; (ii) the success of the Company’s strategic initiatives;
(iii) completion of successful acquisitions in the same and
adjacent categories; (iv) the future operating and financial
performance of the Company including our guidance with respect to
Adjusted EBITDA; and (v) synergies from combining the Findus and
Iglo businesses. These statements are not guarantees of future
performance and are subject to known and unknown risks,
uncertainties and other factors that could cause actual results to
differ materially from those expressed or implied by such
forward-looking statements, including (i) economic conditions,
competition and other risks that may affect the Company’s future
performance; (ii) the risk that securities markets will react
negatively to actions by the Company; (iii) the ability to
recognize the anticipated benefits to the Company of strategic
initiatives; (iv) the successful completion of strategic
acquisitions; (v) changes in applicable laws or regulations; and
(vi) the other risks and uncertainties disclosed in the Company’s
public filings and any other public disclosures by the Company.
Given these risks and uncertainties, prospective investors are
cautioned not to place undue reliance on forward-looking
statements. Forward-looking statements speak only as of the date of
such statements and, except as required by applicable law, the
Company does not undertake any obligation to update or revise
publicly any forward-looking statements, whether as a result of new
information, future events or otherwise.
No Offer or Solicitation
This release and referenced conference call is provided for
informational purposes only and does not constitute an offer to
sell, or an invitation to subscribe for, purchase or exchange, any
securities or the solicitation of any vote or approval in any
jurisdiction, nor shall there be any sale, issuance, exchange or
transfer of the securities referred to in this press release in any
jurisdiction in contravention of applicable law.
The release, publication or distribution of this announcement in
certain jurisdictions may be restricted by law and therefore
persons in such jurisdictions into which this announcement is
released, published or distributed should inform themselves about
and observe such restrictions.
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version on businesswire.com: http://www.businesswire.com/news/home/20171128005187/en/
Nomad Foods ContactsInvestor Relations
ContactsNomad Foods LimitedTaposh Bari,
+1-718-290-7950CFAorICRJohn Mills, +1-646-277-1254PartnerorMedia
ContactWeber ShandwickLiz Cohen, +1-212-445-8044
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