Company Raises 2018 Guidance
Nomad Foods Limited (NYSE: NOMD), today reported financial
results for the three and six month periods ended June 30,
2018. Key operating highlights and financial performance for the
second quarter 2018, when compared to the second quarter 2017,
include:
- Reported revenue increased 6.6% to
€488 million
- Organic revenue growth of
1.3%
- Reported Profit for the period of
€31 million
- Adjusted EBITDA increased 12% to €89
million
- Reported EPS of €0.18; Adjusted EPS
increased 22% to €0.28
- Company raises 2018 guidance to €365
to €370 million Adjusted EBITDA and €1.14 to €1.17 Adjusted
EPS
Management Comments
Stéfan Descheemaeker, Nomad Foods’ Chief Executive Officer,
stated, “We reported solid second quarter results, highlighted by
1.3% organic revenue growth, 90 basis points of Adjusted EBITDA
margin expansion and 22% Adjusted EPS growth. Performance was
particularly encouraging given this year's earlier Easter timing
and the highly publicized summer heat waves throughout Europe.
Recent acquisitions are proving complementary. Goodfella's is
performing well in our first few months of ownership and Aunt
Bessie's, which closed on July 2nd, is expected to be immediately
accretive. We are pleased with our year-to-date progress and are on
pace to deliver another year of top and bottom line growth."
Noam Gottesman, Nomad Foods’ Co-Chairman and Founder, commented,
“Second quarter results demonstrate the strength of our business
model and the execution ability of our management team. We remain
uniquely positioned to capitalize on the favorable macro trends
occurring within the frozen food space and are excited by the
potential of our portfolio in both the near and long-term."
Second Quarter of 2018 results compared to the Second Quarter
of 2017
- Revenue increased 6.6% to €488
million. Organic revenue growth of 1.3% was comprised of
1.5% growth in price and a 0.2% decline in volume/mix. Revenue
growth benefited 6.4 percentage points from the acquisition of
Goodfella's and was offset by 1.1 percentage points from foreign
exchange translation.
- Adjusted gross profit increased
6% to €154 million. Adjusted gross margin was unchanged at 31.5% as
positive mix and improved pricing and promotional efficiency were
offset by mix related to the acquisition of Goodfella’s.
- Adjusted operating expense
increased 2% to €76 million. Advertising and promotion expense
decreased 1% to €26 million. Indirect expense increased 4% to €50
million due to the acquisition of Goodfella's.
- Adjusted EBITDA increased 12% to
€89 million.
- Adjusted Profit after tax
increased 17% to €49 million reflecting interest savings.
Adjusted EPS increased 22% to €0.28, reflecting Adjusted
Profit growth and a lower share count resulting from prior year
share repurchases.
First Six Months of 2018 results compared to the First Six
Months of 2017
- Revenue increased 3.8% to €1,027
million. Organic revenue growth of 2.1% was comprised of
1.4% growth in price and 0.7% growth in volume/mix. Revenue growth
benefited 3.0 percentage points from the acquisition of Goodfella's
and was offset by 1.3 percentage points from foreign exchange
translation.
- Adjusted gross profit increased
8% to €325 million. Adjusted gross margin expanded 120 basis points
to 31.6% as positive mix and price increases more than offset
currency-driven inflation.
- Adjusted Operating expense
remained flat at €154 million. Advertising and promotion expense
was flat at €56 million reflecting seasonally balanced spending in
2018 versus 2017 while Indirect expense was also flat at €98
million.
- Adjusted EBITDA increased 14% to
€192 million.
- Adjusted Profit after tax
increased 27% to €111 million reflecting interest rate savings and
lower depreciation and amortization. Adjusted EPS increased
31% to €0.63, reflecting Adjusted Profit growth and a lower share
count resulting from prior year share repurchases.
2018 Guidance
The Company is raising 2018 guidance to include the expected
contribution from Aunt Bessie's, which was acquired on July 2,
2018. Management now expects Adjusted EBITDA of approximately €365
to €370 million and Adjusted EPS of approximately €1.14 to €1.17
per share. Full year guidance continues to assume organic revenue
growth at a low-single digit percentage range.
Conference Call and Webcast
The Company will host a conference call with members of the
executive management team to discuss these results today, Thursday,
August 9, 2018 at 1:30 p.m. GMT time (8:30 a.m. Eastern time).
Investors interested in participating in the live call can dial
+1-800-289-0438 from the U.S. International callers can dial
+1-323-794-2423.
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 9559512.
About Nomad Foods
Nomad 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. The company's portfolio of iconic brands, which includes
Birds Eye, Findus, Iglo Aunt Bessie's and Goodfella's, have been a
part of consumers' meals for generations, standing for great
tasting food that is convenient, high quality and nutritious. Nomad
Foods is headquartered in the United Kingdom. Additional
information may be found at www.nomadfoods.com.
Non-IFRS Financial Information
Nomad Foods is presenting Adjusted and Organic financial
information, which is considered non-IFRS financial information,
for the three and six months ended June 30, 2018 and for
comparative purposes, the three and six months ended June 30,
2017.
Adjusted financial information for the three and six months
ended June 30, 2018 and 2017 presented in this press release
reflects the historical reported financial statements of Nomad
Foods, adjusted primarily for share based payment charges, M&A
related costs, acquisition purchase price adjustments, 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, the impacts of exited
markets, acquisition purchase price adjustments, trading day
impacts, chart of account (“CoA”) alignments and exceptional items
such as restructuring charges, goodwill and intangible asset
impairment 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. In addition,
we exclude other adjustments such as the impact of share based
payment charges and M&A related costs, because we do not
believe they are indicative of our normal operating costs, can vary
significantly in amount and frequency, and are unrelated to our
underlying operating performance. 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, acquisition
purchase price adjustments, trading day impacts, chart of account
(“CoA”) alignments and exceptional items such as restructuring
charges, goodwill and intangible asset impairment charges, unissued
preferred share dividends, as well as certain other items
considered unusual or non-recurring in nature. In addition, we
exclude other adjustments such as the impact of share based payment
charges and M&A related costs, because we do not believe they
are indicative of our normal operating costs, can vary
significantly in amount and frequency, and are unrelated to our
underlying operating performance. 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 six months ended June 30,
2018 and 2017 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 June 30, 2018 and
June 30, 2017
Three months endedJune 30,
2018
Three months endedJune 30,
2017
€ millions € millions Revenue 488.2 458.1 Cost of
sales (336.7 ) (313.8 )
Gross profit 151.5
144.3 Other operating expenses (85.8 ) (75.3 ) Exceptional
items (6.1 ) (11.5 )
Operating profit 59.6
57.5 Finance income — 5.0 Finance costs (17.9 ) (37.3 )
Net financing costs (17.9 ) (32.3
) Profit before tax 41.7 25.2 Taxation
(10.7 ) (5.9 )
Profit for the period 31.0
19.3 Basic earnings per share Profit for the
period in € millions 31.0 19.3 Weighted average shares outstanding
in millions 175.6 181.7
Basic earnings per share in €
0.18 0.11 Diluted earnings per share Profit
for the period in € millions 31.0 19.3 Weighted average shares
outstanding in millions 175.6 181.7
Diluted earnings per share
in € 0.18 0.11
Statements of Profit or Loss
(unaudited)
Six months ended June 30, 2018 and
June 30, 2017
Six months endedJune 30,
2018
Six months endedJune 30,
2017
€ millions € millions Revenue 1,027.4 989.4 Cost of
sales (704.6 ) (689.0 )
Gross profit 322.8
300.4 Other operating expenses (168.6 ) (156.2 ) Exceptional
items (7.6 ) (11.4 )
Operating profit 146.6
132.8 Finance income 3.1 5.6 Finance costs (27.1 ) (54.0 )
Net financing costs (24.0 ) (48.4
) Profit before tax 122.6 84.4 Taxation
(29.2 ) (17.1 )
Profit for the period 93.4
67.3 Basic earnings per share Profit for the
period in € millions 93.4 67.3 Weighted average shares outstanding
in millions 175.5 182.7
Basic earnings per share in €
0.53 0.37 Diluted earnings per share Profit
for the period in € millions 93.4 67.3 Weighted average shares
outstanding in millions 175.5 182.7
Diluted earnings per share
in € 0.53 0.37
Nomad Foods Limited As Reported
Statements of Financial
Position
As at June 30, 2018 (unaudited)
and December 31, 2017 (audited)
As at June 30, 2018
As at December 31, 2017 € millions € millions
Non-current assets Goodwill 1,828.8 1,745.6 Intangibles
1,880.8 1,724.4 Property, plant and equipment 321.0 295.4 Other
receivables 3.2 4.3 Derivative financial instruments 24.5 18.6
Deferred tax assets 61.5 64.3
Total non-current
assets 4,119.8 3,852.6 Current
assets Cash and cash equivalents 403.7 219.2 Inventories 333.5
306.9 Trade and other receivables 165.1 147.1 Indemnification
assets 79.7 73.8 Derivative financial instruments 14.3 2.1
Total current assets 996.3 749.1
Total assets 5,116.1 4,601.7
Current liabilities Trade and other payables 482.1
477.5 Current tax payable 177.5 145.3 Provisions 65.9 68.0 Loans
and borrowings 6.2 3.3 Derivative financial instruments 1.7
7.8
Total current liabilities 733.4
701.9 Non-current liabilities Loans and
borrowings 1,761.1 1,395.1 Employee benefits 194.9 188.4 Trade and
other payables 1.8 1.8 Provisions 64.7 72.8 Derivative financial
instruments 44.0 61.4 Deferred tax liabilities 350.8 327.7
Total non-current liabilities 2,417.3
2,047.2 Total liabilities 3,150.7
2,749.1 Net assets 1,965.4
1,852.6 Equity attributable to equity
holders Share capital — — Capital reserve 1,745.2 1,623.7 Share
based compensation reserve 8.5 2.9 Founder Preferred Share Dividend
reserve 372.6 493.4 Translation reserve 89.6 83.2 Cash flow hedging
reserve 9.8 (3.0 ) Accumulated deficit (260.3 ) (347.6 )
Total
equity 1,965.4 1,852.6
Nomad Foods Limited As Reported
Statements of Cash Flows
(unaudited)
For the six months ended June 30, 2018
and the six months ended June 30, 2017
For the six months endedJune 30,
2018
For the six months endedJune 30,
2017
€ millions € millions Cash flows from operating
activities Profit for the period 93.4 67.3
Adjustments for: Exceptional items 7.6 11.4 Non-cash fair value
purchase price adjustment of inventory 2.1 — Share based payment
expense 6.4 2.1 Depreciation and amortization 21.2 21.8 Loss on
disposal and impairment of property, plant and equipment 0.2 0.2
Finance costs 27.1 54.0 Finance income (3.1 ) (5.6 ) Taxation 29.2
17.1
Operating cash flow before changes in working
capital, provisions and exceptional items 184.1
168.3 (Increase)/decrease in inventories (15.3 ) 13.2
(Increase)/decrease in trade and other receivables (27.1 ) 6.9
(Decrease)/increase in trade and other payables (5.9 ) 11.7
Decrease in employee benefits and other provisions (0.4 ) (0.9 )
Cash generated from operations before tax and exceptional
items 135.4 199.2 Cash flows relating to
exceptional items (17.2 ) (46.4 ) Tax paid (9.3 ) (14.5 )
Net
cash generated from operating activities 108.9
138.3 Cash flows from investing activities
Purchase of subsidiaries, net of cash acquired (237.0 ) — Purchase
of property, plant and equipment (8.7 ) (16.8 ) Purchase of
intangibles (1.4 ) (2.5 )
Cash used in investing activities
(247.1 ) (19.3 ) Cash flows from
financing activities Issuance of new share capital 0.1 —
Repurchase of ordinary shares — (93.9 ) Issuance of new loan
principal 354.8 1,470.5 Repayment of loan principal (5.9 ) (1,469.5
) Payment of finance leases — (1.6 ) Proceeds on settlement of
derivatives 1.7 0.1 Payment of financing fees (3.2 ) (13.6 )
Interest paid (24.0 ) (25.2 ) Interest received — 0.3
Net cash generated from/(used in) financing activities
323.5 (132.9 ) Net
increase/(decrease) in cash and cash equivalents 185.3
(13.9 ) Cash and cash equivalents at
beginning of period 219.2 329.5 Effect of
exchange rate fluctuations (0.8 ) (15.1 )
Cash and cash
equivalents at end of period 403.7 300.5
Nomad Foods LimitedAdjusted Financial
Information(In € millions, except per share data)
The following table reconciles adjusted financial information
for the three months ended June 30, 2018 to the reported results of
Nomad Foods for such period.
Adjusted Statements of Profit or Loss
(unaudited)
Three Months Ended June 30,
2018
€ in millions, except per share data
As reported for thethree months
endedJune 30, 2018
Adjustments
As adjusted for thethree months
endedJune 30, 2018
Revenue 488.2 — 488.2 Cost of sales (336.7 ) 2.1 (a) (334.6
)
Gross profit 151.5 2.1 153.6 Other
operating expenses (85.8 ) 9.9 (b) (75.9 ) Exceptional items (6.1 )
6.1 (c) —
Operating profit 59.6
18.1 77.7 Finance income — — — Finance costs (17.9 )
4.0 (13.9 )
Net financing costs (17.9 )
4.0 (d)
(13.9 ) Profit before
tax 41.7 22.1 63.8 Taxation (10.7 ) (3.8 )
(e) (14.5 )
Profit for the period 31.0
18.3 49.3 Weighted average shares
outstanding in millions - basic 175.6 175.6
Basic earnings per
share 0.18 0.28 Weighted average shares
outstanding in millions - diluted 175.6 175.6
Diluted earnings
per share 0.18 0.28
(a) Adjustments to add back the non-cash charge related to the
increase in inventory fair value recorded as part of the
Goodfella's Pizza purchase price accounting.(b) Adjustment to add
back the share based payment charge of €4.2 million and
non-operating M&A related costs of €5.7 million.(c) Adjustment
to add back exceptional items. See Note 6, Exceptional items,
within ‘Exhibit 99.2 - Condensed Consolidated Interim Financial
Statements’ for a detailed list of exceptional items.(d) Adjustment
to eliminate €1.7 million of costs incurred as part of the issuance
of new debt drawn down on June 20, 2018, €1.3 million of non-cash
foreign exchange translation losses and €1.0 million of foreign
exchange losses on derivatives.(e) 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 June 30, 2018 to the reported results of
Nomad Foods for such period.
EBITDA and Adjusted EBITDA
(unaudited)
Three Months Ended June 30,
2018
€ in millions
Three months endedJune 30,
2018
Profit for the period 31.0 Taxation 10.7 Net
financing costs 17.9 Depreciation 9.5 Amortization 1.7
EBITDA 70.8 Acquisition purchase price adjustments
2.1 (a) Exceptional items 6.1 (b) Other Adjustments 9.9 (c)
Adjusted EBITDA (d) 88.9
(a) Adjustment to add back the non-cash charge related to the
increase in inventory fair value recorded as part of the
Goodfella's Pizza purchase price accounting.(b) Adjustment to add
back exceptional items. See Note 6, Exceptional items, within
‘Exhibit 99.2 - Condensed Consolidated Interim Financial
Statements’ for a detailed list of exceptional items.(c) Other
adjustments include the elimination of share-based payment charges
of €4.2 million and elimination of non-operating M&A related
costs of €5.7 million.(d) Adjusted EBITDA margin of 18.2% for the
three months ended June 30, 2018 is calculated by dividing Adjusted
EBITDA by revenue of €488.2 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 June 30, 2017 to the reported results of
Nomad Foods for such period.
Adjusted Statements of Profit or Loss
(unaudited)
Three Months Ended June 30,
2017
€ in millions, except per share data
As reported for thethree months
endedJune 30, 2017
Adjustments
As adjusted for thethree months
endedJune 30, 2017
Revenue 458.1 — 458.1 Cost of sales (313.8 ) — (313.8 )
Gross profit 144.3 — 144.3 Other
operating expenses (75.3 ) 0.8 (a) (74.5 ) Exceptional items (11.5
) 11.5 (b) —
Operating profit 57.5
12.3 69.8 Finance income 5.0 (5.0 ) — Finance costs
(37.3 ) 22.4 (14.9 )
Net financing costs (32.3
) 17.4 (c)
(14.9 ) Profit
before tax 25.2 29.7 54.9 Taxation (5.9 )
(6.7 ) (d) (12.6 )
Profit for the period 19.3
23.0 42.3 Weighted average shares
outstanding in millions - basic 181.7 181.7
Basic earnings per
share 0.11 0.23 Weighted average shares
outstanding in millions - diluted 181.7 181.7
Diluted earnings
per share 0.11 0.23
(a) Adjustment to add back the share-based payment charge.(b)
Adjustment to add back exceptional items. See Note 6,
Exceptional items, within ‘Exhibit 99.2 - Condensed Consolidated
Interim Financial Statements’ for a detailed list of exceptional
items.(c) Adjustment to eliminate €19.5 million of costs incurred
in conjunction with the refinancing on May 3, 2017, €3.5 million of
non-cash foreign exchange translation losses and €5.6 million
foreign exchange gains 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 June 30, 2017 to the reported results of
Nomad Foods for such period.
EBITDA and Adjusted EBITDA
(unaudited)
Three Months Ended June 30,
2017
€ in millions
Three months endedJune 30,
2017
Profit for the period 19.3 Taxation 5.9 Net financing
costs 32.3 Depreciation 8.1 Amortization 1.4
EBITDA
67.0 Exceptional items 11.5 (a) Other Adjustments 0.8 (b)
Adjusted EBITDA(c) 79.3
(a) Adjustment to add back exceptional items. See Note 6,
Exceptional items, within ‘Exhibit 99.2 - Condensed Consolidated
Interim Financial Statements’ for a detailed list of exceptional
items.(b) Other adjustments include the elimination of the
share-based payment charges of €0.8 million.(c) Adjusted EBITDA
margin 17.3% for the three months ended June 30, 2017 is calculated
by dividing Adjusted EBITDA by revenue of €458.1 million per page
10.
Nomad Foods LimitedAdjusted Financial
Information(In € millions, except per share data)
The following table reconciles adjusted financial information
for the six months ended June 30, 2018 to the reported results of
Nomad Foods for such period.
Adjusted Statements of Profit or Loss
(unaudited)
Six Months Ended June 30, 2018
€ in millions, except per share data
As reported for thesix months
endedJune 30, 2018
Adjustments
As adjusted for thesix months
endedJune 30, 2018
Revenue 1,027.4 — 1,027.4 Cost of sales (704.6 ) 2.1 (a)
(702.5 )
Gross profit 322.8 2.1 324.9
Other operating expenses (168.6 ) 14.6 (b) (154.0 ) Exceptional
items (7.6 ) 7.6 (c) —
Operating profit
146.6 24.3 170.9 Finance income 3.1 (3.1 ) —
Finance costs (27.1 ) 0.1 (27.0 )
Net financing costs
(24.0 ) (3.0 ) (d)
(27.0
) Profit before tax 122.6 21.3
143.9 Taxation (29.2 ) (3.3 ) (e) (32.5 )
Profit for the
period 93.4 18.0 111.4
Weighted average shares outstanding in millions - basic
175.5 175.5
Basic earnings per share 0.53 0.63
Weighted average shares outstanding in millions - diluted 175.5
175.5
Diluted earnings per share 0.53 0.63
(a) Adjustments to add back the non-cash charge related to the
increase in inventory fair value recorded as part of the
Goodfella's Pizza purchase price accounting.(b) Adjustment to add
back the share-based payment charge of €6.4 million and
non-operating M&A related costs of €8.2 million.(c) Adjustment
to add back exceptional items. See Note 6, Exceptional items,
within ‘Exhibit 99.2 - Condensed Consolidated Interim Financial
Statements’ for a detailed list of exceptional items.(d) Adjustment
to eliminate €1.7 million of costs incurred in conjunction with the
issuance of new debt drawn down on June 20, 2018, eliminate €0.2
million of non-cash foreign exchange translation losses and €4.9
million of foreign exchange gains on derivatives.(e) 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 six months ended June 30, 2018 to the reported results of Nomad
Foods for such period.
EBITDA and Adjusted EBITDA
(unaudited)
Six Months Ended June 30, 2018
€ in millions
Six months endedJune 30,
2018
Profit for the period 93.4 Taxation 29.2 Net
financing costs 24.0 Depreciation 18.0 Amortization 3.2
EBITDA 167.8 Acquisition purchase price adjustments
2.1 (a) Exceptional items 7.6 (b) Other Adjustments 14.6 (c)
Adjusted EBITDA (d) 192.1
(a) Adjustment to add back the non-cash charge related to the
increase in inventory fair value recorded as part of the
Goodfella's Pizza purchase price accounting.(b) Adjustment to add
back exceptional items. See Note 6, Exceptional items, within
‘Exhibit 99.2 - Condensed Consolidated Interim Financial
Statements’ for a detailed list of exceptional items.(c) Other
adjustments include the elimination of the share-based payment
charge of €6.4 million and non-operating M&A related costs of
€8.2 million.(d) Adjusted EBITDA margin of 18.7% for the six months
ended June 30, 2018 is calculated by dividing Adjusted EBITDA by
revenue of €1,027.4 million per page 12.
Nomad Foods LimitedAdjusted Financial
Information(In € millions)
The following table reconciles Adjusted financial information
for the six months ended June 30, 2017 to the reported results of
Nomad Foods for such period.
Adjusted Statements of Profit or Loss
(unaudited)
Six Months Ended June 30, 2017
€ in millions, except per share data
As reported for thesix months
endedJune 30, 2017
Adjustments
As Adjusted for thesix months
endedJune 30, 2017
Revenue 989.4 — 989.4 Cost of sales (689.0 ) — (689.0 )
Gross profit 300.4 — 300.4 Other
operating expenses (156.2 ) 2.1 (a) (154.1 ) Exceptional items
(11.4 ) 11.4 (b) —
Operating profit
132.8 13.5 146.3 Finance income 5.6 (5.4 ) 0.2
Finance costs (54.0 ) 21.4 (32.6 )
Net financing
costs (48.4 ) 16.0 (c)
(32.4
) Profit before tax 84.4 29.5
113.9 Taxation (17.1 ) (9.1 ) (d) (26.2 )
Profit for the
period 67.3 20.4 87.7
Weighted average shares outstanding in millions - basic 182.7 182.7
Basic earnings per share 0.37 0.48 Weighted
average shares outstanding in millions - diluted 182.7 182.7
Diluted earnings per share 0.37 0.48
(a) Adjustment to add back the share based payment charge.(b)
Adjustment to add back exceptional items. See Note 6,
Exceptional items, within ‘Exhibit 99.2 - Condensed Consolidated
Interim Financial Statements’ 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, €2.5 million of
foreign exchange translation losses and €6.0 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 six months ended June 30, 2017 to the reported results of Nomad
Foods for such period:
EBITDA and Adjusted EBITDA
(unaudited)
Six Months Ended June 30, 2017
€ in millions
Six months endedJune 30,
2017
Profit for the period 67.3 Taxation 17.1 Net
financing costs 48.4 Depreciation 18.0 Amortization 3.8
EBITDA 154.6 Exceptional items 11.4 (a) Other
Adjustments 2.1 (b)
Adjusted EBITDA(c) 168.1
(a) Adjustment to add back exceptional items. See Note 6,
Exceptional items, within ‘Exhibit 99.2 - Condensed Consolidated
Interim Financial Statements’ for a detailed list of exceptional
items.(b) Other adjustments include the elimination of the
share-based payment charge.(c) Adjusted EBITDA margin of 17.0% for
the six months ended June 30, 2017 is calculated by dividing
Adjusted EBITDA by revenue of €989.4 million per page 14.
Nomad Foods Limited
Adjusted Financial Information
(continued)
Appendix 1: Reconciliation from
reported to organic revenue growth
Year on Year Growth - June 30,
2018 compared with June 30, 2017:
Three Months EndedJune 30,
2018
Six Months EndedJune 30,
2018
YoY Growth YoY Growth Reported Revenue Growth
6.6 % 3.8 % Of which: - Organic Revenue
Growth 1.3 % 2.1 % - Acquisitions 6.4 % 3.0 % - Translational FX
(a) (1.1 )% (1.3 )%
Total 6.6 % 3.8
%
(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 and market share in the
frozen foods market; (ii) the success of the Company’s strategic
initiatives including focus on core products, product enhancements
and media investments; (iii) the timing and success of new product
launches such as Veggie Power, Good For You, Pulses and PEASE; (iv)
completion of successful acquisitions in the same and adjacent
categories; (v) the future operating and financial performance of
the Company including organic growth rate and our guidance with
respect to Adjusted EBITDA and Adjusted EPS, gross margins and
operating expenses; and (vi) synergies and other benefits from the
Goodfella's and Aunt Bessie's acquisitions, including an increase
in the size and scale of the Company’s U.K. business and the level
of additional revenue, earnings and EBITDA generated by these
businesses in 2018 . 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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Nomad Foods ContactsInvestor Relations
ContactsNomad Foods LimitedTaposh Bari, CFA,
+1-718-290-7950orICRJohn Mills, +1-646-277-1254PartnerorMedia
ContactGladstone Place PartnersFelipe Ucros / Max Dutcher,
+1-212-230-5930
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