Company Raises 2018 Guidance to the Upper End
of the Prior Range
Nomad Foods Limited (NYSE: NOMD), today reported financial
results for the three and nine month periods ended
September 30, 2018. Key operating highlights and financial
performance for the third quarter 2018, when compared to the third
quarter 2017, include:
- Reported revenue increased 15.6% to
€531 million
- Organic revenue growth of
1.9%
- Reported Profit for the period of
€36 million
- Adjusted EBITDA increased 7% to €84
million
- Reported EPS decreased 13% to €0.21;
Adjusted EPS increased 8% to €0.26
- Company raises 2018 guidance to the
upper end of the prior range of €365 to €370 million Adjusted
EBITDA and €1.14 to €1.17 Adjusted EPS
Management CommentsStéfan Descheemaeker, Nomad Foods’
Chief Executive Officer, stated, “We are pleased with our third
quarter performance and are now on track to deliver the upper end
of our prior 2018 guidance range. Organic revenue growth of 1.9%
marks our seventh consecutive quarter of organic growth and is a
testament to our focused strategy and relentless commitment to
execution. As anticipated, underlying gross margin improvement was
offset by acquisition mix and an unfavorable pea harvest. We
continue to expect accelerated EBITDA growth in the fourth quarter
and look forward to a strong finish to 2018."
Noam Gottesman, Nomad Foods’ Co-Chairman and Founder, commented,
“Our brands continue to respond well to the investments we are
making in our core portfolio. Third quarter results demonstrate our
ability to anniversary strong year-ago performance while
successfully navigating one of the hottest and driest summers on
record in Europe. The prospects for frozen food remain bright with
Nomad Foods well positioned as the market leader."
Third Quarter of 2018 results compared to the Third Quarter
of 2017
- Revenue increased 15.6% to €531
million. Organic revenue growth of 1.9% was comprised of
0.1% growth in price and 1.8% growth in volume/mix. Revenue growth
benefited 14.7 percentage points from the acquisitions of
Goodfella's and Aunt Bessie's and was offset by 1.0 percentage
point from foreign exchange translation.
- Adjusted gross profit increased
8% to €151 million. Adjusted gross margin declined 190 basis points
to 28.4% as positive mix was offset by an unfavorable harvest and
the inclusion of the recently acquired acquisitions.
- Adjusted operating expense
increased 12% to €79 million, primarily due to acquisitions.
Advertising and promotion expense increased 18% to €27 million due
to acquisitions and phasing. Indirect expense increased 8% to €53
million due to acquisitions.
- Adjusted EBITDA increased 7% to
€84 million.
- Adjusted profit after tax
increased 7% to €45 million. Adjusted EPS increased 8% to
€0.26, reflecting Adjusted profit growth.
First Nine Months of 2018 results compared to the First Nine
Months of 2017
- Revenue increased 7.6% to €1,558
million. Organic revenue growth of 2.1% was comprised of
1.0% growth in price and 1.1% growth in volume/mix. Revenue growth
benefited 6.7 percentage points from the acquisitions of
Goodfella's and Aunt Bessie's and was offset by 1.2 percentage
points from foreign exchange translation.
- Adjusted gross profit increased
8% to €476 million. Adjusted gross margin expanded 20 basis points
to 30.5% as positive mix and improved pricing and promotional
efficiency were offset by an unfavorable harvest and the inclusion
of the recently acquired acquisitions.
- Adjusted operating expense
increased 4% to €233 million, primarily due to acquisitions.
Advertising and promotion expense increased 5% to €83 million and
Indirect expense increased 3% to €151 million.
- Adjusted EBITDA increased 12% to
€276 million.
- Adjusted profit after tax
increased 21% to €156 million reflecting prior year interest rate
savings. Adjusted EPS increased 24% to €0.89, reflecting
Adjusted profit growth and a lower share count resulting from prior
year share repurchases.
2018 GuidanceThe Company is raising 2018 guidance to the
upper end of the prior range and now expects Adjusted EBITDA at the
upper end of approximately €365 to €370 million and Adjusted EPS at
the upper end 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 WebcastThe Company will host a
conference call with members of the executive management team to
discuss these results today, Thursday, November 8, 2018 at
1:30 p.m. GMT time (8:30 a.m. Eastern time). Investors interested
in participating in the live call can dial +1-800-239-9838 from the
U.S. International callers can dial +1-323-794-2551.
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 3706556.
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. 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 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, 2018 and for comparative purposes, the three and
nine months ended September 30, 2017.
Adjusted financial information for the three and nine months
ended September 30, 2018 and 2017 presented in this press
release reflects the historical reported financial statements of
Nomad Foods, adjusted primarily for share based payment expenses
and related employer payroll taxes, non-operating 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 expenses and related employer payroll taxes, and
non-operating 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
expenses and related employer payroll taxes, and non-operating
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 nine months ended
September 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
ReportedStatements of Profit or Loss (unaudited)Three
months ended September 30, 2018 and September 30, 2017
Three months endedSeptember 30,
2018
Three months endedSeptember 30,
2017
€ millions € millions Revenue 530.6 459.0 Cost of
sales (383.6 ) (320.0 )
Gross profit 147.0
139.0 Other operating expenses (84.5 ) (71.4 ) Exceptional
items (4.1 ) (5.4 )
Operating profit 58.4 62.2
Finance income 1.1 3.9 Finance costs (13.2 ) (12.5 )
Net
financing costs (12.1 ) (8.6 )
Profit before tax 46.3 53.6 Taxation (10.0 )
(11.7 )
Profit for the period 36.3 41.9
Attributable to: Equity owners of the parent
36.7 41.9 Non-controlling interests (0.4 ) —
36.3
41.9 Basic earnings per share
Profit for the period in € millions 36.3 41.9 Weighted average
shares outstanding in millions 175.6 172.4
Basic earnings per
share in € 0.21 0.24 Diluted earnings per
share Profit for the period in € millions 36.3 41.9 Weighted
average shares outstanding in millions 175.7 172.4
Diluted
earnings per share in € 0.21 0.24
Statements of Profit or Loss
(unaudited)Nine months ended September 30, 2018 and
September 30, 2017
Nine months endedSeptember 30,
2018
Nine months endedSeptember 30,
2017
€ millions € millions Revenue 1,558.0 1,448.4 Cost of
sales (1,088.2 ) (1,009.0 )
Gross profit 469.8
439.4 Other operating expenses (253.1 ) (227.6 ) Exceptional
items (11.7 ) (16.8 )
Operating profit 205.0
195.0 Finance income 2.7 9.2 Finance costs (38.8 ) (66.2 )
Net financing costs (36.1 ) (57.0
) Profit before tax 168.9 138.0
Taxation (39.2 ) (28.8 )
Profit for the period 129.7
109.2 Attributable to: Equity
owners of the parent 130.1 109.2 Non-controlling interests (0.4 ) —
129.7 109.2 Basic
earnings per share Profit for the period in € millions 129.7
109.2 Weighted average shares outstanding in millions 175.6 179.2
Basic earnings per share in € 0.74 0.61
Diluted earnings per share Profit for the period in €
millions 129.7 109.2 Weighted average shares outstanding in
millions 175.6 179.2
Diluted earnings per share in €
0.74 0.61
Nomad Foods Limited As
ReportedStatements of Financial PositionAs at
September 30, 2018 (unaudited) and December 31, 2017
(audited)
As at September 30, 2018 As at December 31,
2017 € millions € millions Non-current
assets Goodwill 1,860.0 1,745.6 Intangibles 2,085.6 1,724.4
Property, plant and equipment 342.6 295.4 Other receivables 2.9 4.3
Derivative financial instruments 27.0 18.6 Deferred tax assets 63.5
64.3
Total non-current assets 4,381.6
3,852.6 Current assets Cash and cash
equivalents 156.9 219.2 Inventories 377.6 306.9 Trade and other
receivables 205.5 147.1 Indemnification assets 79.7 73.8 Derivative
financial instruments 11.8 2.1
Total current
assets 831.5 749.1 Total
assets 5,213.1 4,601.7 Current
liabilities Trade and other payables 492.7 477.5 Current tax
payable 194.4 145.3 Provisions 58.6 68.0 Loans and borrowings 6.6
3.3 Derivative financial instruments 1.6 7.8
Total
current liabilities 753.9 701.9
Non-current liabilities Loans and borrowings 1,762.8 1,395.1
Employee benefits 193.9 188.4 Trade and other payables 1.3 1.8
Provisions 68.3 72.8 Derivative financial instruments 41.4 61.4
Deferred tax liabilities 388.1 327.7
Total
non-current liabilities 2,455.8 2,047.2
Total liabilities 3,209.7
2,749.1 Net assets 2,003.4
1,852.6 Equity Share capital — — Capital
reserve 1,745.2 1,623.7 Share based compensation reserve 9.6 2.9
Founder Preferred Share Dividend reserve 372.6 493.4 Translation
reserve 88.3 83.2 Cash flow hedging reserve 10.0 (3.0 ) Accumulated
deficit (221.8 ) (347.6 )
Equity attributable to owners of the
parent 2,003.9 1,852.6
Non-controlling interests (0.5 ) —
Total equity
2,003.4 1,852.6
Nomad Foods Limited As
ReportedStatements of Cash Flows (unaudited)For the
nine months ended September 30, 2018 and the nine months ended
September 30, 2017
For the nine months
endedSeptember 30, 2018
For the nine months
endedSeptember 30, 2017
€ millions € millions Cash flows from operating
activities Profit for the period 129.7
109.2 Adjustments for: Exceptional items 11.7 16.8 Non-cash
fair value purchase price adjustment of inventory 5.7 — Share based
payment expense 9.5 2.4 Depreciation and amortization 33.6 32.4
Loss on disposal and impairment of property, plant and equipment
0.1 0.2 Finance costs 38.8 66.2 Finance income (2.7 ) (9.2 )
Taxation 39.2 28.8
Operating cash flow before
changes in working capital, provisions and exceptional items
265.6 246.8 Increase in inventories (50.8 ) (9.0 )
Increase in trade and other receivables (51.0 ) (8.1 ) Decrease in
trade and other payables (14.3 ) (7.7 ) Increase in employee
benefits and other provisions — 2.0
Cash generated
from operations before tax and exceptional items 149.5
224.0 Cash flows relating to exceptional items (28.2 ) (71.3
) Tax paid (10.6 ) (32.2 )
Net cash generated from operating
activities 110.7 120.5 Cash
flows from investing activities Purchase of subsidiaries, net
of cash acquired (465.1 ) — Purchase of property, plant and
equipment (17.8 ) (26.0 ) Purchase of intangibles (3.1 ) (2.5 )
Cash used in investing activities (486.0 )
(28.5 ) Cash flows from financing activities
Issuance of new share capital 0.1 — Repurchase of ordinary shares —
(177.6 ) 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 )
Loss on settlement of derivatives (1.0 ) (2.4 ) Payment of
financing fees (2.5 ) (13.6 ) Interest paid (30.6 ) (32.9 )
Interest received 0.2 0.3
Net cash generated
from/(used in) financing activities 315.1
(226.8 ) Net decrease in cash and cash
equivalents (60.2 ) (134.8 )
Cash and cash equivalents at beginning of period
219.2 329.5 Effect of exchange rate fluctuations (2.1
) (16.6 )
Cash and cash equivalents at end of period
156.9 178.1
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, 2018 to the
reported results of Nomad Foods for such period.
Adjusted Statements of Profit or Loss
(unaudited)Three Months Ended September 30, 2018
€ in millions,
except per share data
As reported for thethree months
endedSeptember 30, 2018
Adjustments
As adjusted for thethree months
endedSeptember 30, 2018
Revenue 530.6 — 530.6 Cost of sales (383.6 ) 3.6 (a) (380.0
)
Gross profit 147.0 3.6 150.6 Other
operating expenses (84.5 ) 5.2 (b) (79.3 ) Exceptional items (4.1 )
4.1 (c) —
Operating profit 58.4
12.9 71.3 Finance income 1.1 (0.6 ) 0.5 Finance costs
(13.2 ) (0.3 ) (13.5 )
Net financing costs (12.1
) (0.9 ) (d)
(13.0 ) Profit
before tax 46.3 12.0 58.3 Taxation (10.0 )
(3.3 ) (e) (13.3 )
Profit for the period 36.3
8.7 45.0 Profit attributable
to: Equity owners of the parent 36.7 8.7 45.4 Non-controlling
interests (0.4 ) — (0.4 )
36.3 8.7
45.0 Weighted average shares
outstanding in millions - basic 175.6 175.6
Basic earnings per
share 0.21 0.26 Weighted average shares
outstanding in millions - diluted 175.7 175.7
Diluted earnings
per share 0.21 0.26 (a) Adjustments
to add back the non-cash fair value uplift of inventory recorded as
part of the Aunt Bessie's purchase price accounting. (b) Adjustment
to add back the share-based payment expense and related employer
payroll tax expense of €4.5 million and non-operating M&A
related costs of €0.7 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 a
€0.7 million credit received as part of the issuance of new debt
drawn down on June 20, 2018, €0.6 million of non-cash foreign
exchange translation gains and €0.4 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 September 30, 2018 to the reported
results of Nomad Foods for such period.
EBITDA and Adjusted EBITDA
(unaudited)Three Months Ended September 30, 2018
€ in millions
Three months endedSeptember 30,
2018
Profit for the period 36.3 Taxation 10.0 Net
financing costs 12.1 Depreciation 10.4 Amortization 2.0
EBITDA 70.8 Acquisition purchase price adjustments
3.6 (a) Exceptional items 4.1 (b) Other adjustments 5.2 (c)
Adjusted EBITDA (d) 83.7 (a)
Adjustment to add back the non-cash fair value uplift of inventory
recorded as part of the Aunt Bessie's 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 expense and related employer payroll tax expense of €4.5
million and elimination of non-operating M&A related costs of
€0.7 million. (d) Adjusted EBITDA margin of 15.8% for the three
months ended September 30, 2018 is calculated by dividing Adjusted
EBITDA by revenue of €530.6 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 Profit attributable
to: Equity owners of the parent 41.9 0.1 42.0 Non-controlling
interests — — —
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 the share-based payment expense and related employer
payroll tax expense. (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 €0.3 million of
non-cash foreign exchange translation gains and €4.4 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 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 5.4 (a) Other
adjustments 0.3 (b)
Adjusted EBITDA(c) 78.5
(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 expense and related employer payroll tax
expense of €0.3 million. (c) Adjusted EBITDA margin 17.1% for the
three months ended September 30, 2017 is calculated by dividing
Adjusted EBITDA by revenue of €459.0 million.
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, 2018 to the
reported results of Nomad Foods for such period.
Adjusted Statements of Profit or Loss
(unaudited)Nine Months Ended September 30, 2018
€ in millions,
except per share data
As reported for thenine months
endedSeptember 30, 2018
Adjustments
As adjusted for thenine months
endedSeptember 30, 2018
Revenue 1,558.0 — 1,558.0 Cost of sales (1,088.2 ) 5.7 (a)
(1,082.5 )
Gross profit 469.8 5.7 475.5
Other operating expenses (253.1 ) 19.8 (b) (233.3 ) Exceptional
items (11.7 ) 11.7 (c) —
Operating profit
205.0 37.2 242.2 Finance income 2.7 (2.2 ) 0.5
Finance costs (38.8 ) (1.7 ) (40.5 )
Net financing costs
(36.1 ) (3.9 ) (d)
(40.0
) Profit before tax 168.9 33.3
202.2 Taxation (39.2 ) (6.6 ) (e) (45.8 )
Profit for the
period 129.7 26.7 156.4
Profit attributable to: Equity owners of the
parent 130.1 26.7 156.8 Non-controlling interests (0.4 ) —
(0.4 )
129.7 26.7 156.4
Weighted average shares outstanding in millions - basic
175.6 175.6
Basic earnings per share 0.74 0.89
Weighted average shares outstanding in millions - diluted 175.6
175.6
Diluted earnings per share 0.74 0.89
(a) Adjustments to add back the non-cash fair value
uplift of inventory recorded as part of the Goodfella's Pizza and
Aunt Bessie's purchase price accounting. (b) Adjustment to add back
the share-based payment expense and related employer payroll tax
expense of €10.9 million and non-operating M&A related costs of
€8.9 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 €1.1 million of
costs incurred in conjunction with the issuance of new debt drawn
down on June 20, 2018, eliminate €0.5 million of non-cash foreign
exchange translation gains and €4.5 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 nine months ended September 30, 2018 to the reported
results of Nomad Foods for such period.
EBITDA and Adjusted EBITDA
(unaudited)Nine Months Ended September 30, 2018
€ in millions
Nine months endedSeptember 30,
2018
Profit for the period 129.7 Taxation 39.2 Net
financing costs 36.1 Depreciation 28.4 Amortization 5.2
EBITDA 238.6 Acquisition purchase price adjustments
5.7 (a) Exceptional items 11.7 (b) Other Adjustments 19.8
(c)
Adjusted EBITDA (d) 275.8 (a)
Adjustment to add back the non-cash fair value uplift of
inventory recorded as part of the Goodfella's Pizza and Aunt
Bessie's 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 expense and related
employer payroll tax expense of €10.9 million and non-operating
M&A related costs of €8.9 million. (d) Adjusted EBITDA margin
of 17.7% for the nine months ended September 30, 2018 is calculated
by dividing Adjusted EBITDA by revenue of €1,558.0 million.
Nomad Foods LimitedAdjusted Financial
Information(In € millions)
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
Profit attributable to: Equity owners of the
parent 109.2 20.5 129.7 Non-controlling interests — —
—
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 the share-based payment
expense and related employer payroll tax expense. (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, €2.2 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 16.8 (a) Other
Adjustments 2.4 (b)
Adjusted EBITDA(c) 246.6
(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 expense and related employer payroll tax
expense. (c) Adjusted EBITDA margin of 17.0% for the nine months
ended September 30, 2017 is calculated by dividing Adjusted EBITDA
by revenue of €1,448.4 million.
Nomad Foods LimitedAdjusted
Financial Information (continued)
Appendix 1: Reconciliation from
reported to organic revenue growth
Year on Year Growth -
September 30, 2018 compared with September 30,
2017:
Three Months EndedSeptember 30,
2018
Nine Months EndedSeptember 30,
2018
YoY Growth YoY Growth Reported Revenue Growth
15.6 % 7.6 % Of which: - Organic
Revenue Growth 1.9 % 2.1 % - Acquisitions 14.7 % 6.7 % -
Translational FX (a) (1.0 )% (1.2 )%
Total 15.6
% 7.6 %
(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 focused strategy and relentless commitment to execution;
(ii) prospects for the frozen food industry and expectations
regarding the Company’s performance in such industry; and (iii) the
operating and financial performance of the Company for the
remainder of 2018, including accelerated EBITDA growth, organic
revenue growth rate and the Company’s guidance with respect to
Adjusted EBITDA and Adjusted EPS. 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, including increases in operating
costs and the Company’s ability to manage its cost structure; (ii)
the loss of any of the Company’s executive officers or members of
its senior management team or other key employees; (iii) the loss
of any of the Company’s major customers or a decrease in demand for
its products; (iv) changes in consumer preferences and the
Company’s failure to anticipate and respond to such changes or to
successfully develop and renovate products; (v) the Company’s
ability to successfully interpret and respond to key industry
trends and to realize the expected benefits of its responsive
actions; (vi) the ability to recognize the anticipated benefits to
the Company of strategic initiatives and its recent strategic
acquisitions; (vii) changes in applicable laws or regulations; and
(viii) 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: https://www.businesswire.com/news/home/20181108005130/en/
Investor Relations ContactsNomad Foods LimitedTaposh
Bari, CFA, +1-718-290-7950orICRJohn Mills,
+1-646-277-1254PartnerorMedia ContactGladstone Place
PartnersFelipe Ucros / Josh Clarkson, +1-212-230-5930
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