Full year Adjusted EPS of €1.55 represents 15%
growth, and at the top end of guidance
Completes a 5th consecutive year of record
annual reported revenue, Adjusted EBITDA and Adjusted EPS
Anticipates a sixth consecutive year of
reported revenue growth, organic revenue growth and Adjusted EPS
growth in 2022
Nomad Foods Limited (NYSE: NOMD), today reported financial
results for the three and twelve-month periods ended December 31,
2021.
Key operating highlights and financial performance for the
fourth quarter 2021, when compared to the fourth quarter 2020,
include:
- Reported revenue increased 7.0% to €704 million
- Organic revenue decline of 4.5%
- Reported Profit for the period of €29 million
- Adjusted EBITDA decreased 5% to €113 million
Key operating highlights and financial performance for the full
year 2021, when compared to the full year 2020, include:
- Reported revenue increased 3.6% to €2,607 million
- Organic revenue decline of 2.1%
- Reported Profit for the period of €181 million
- Adjusted EBITDA increased 4% to €487 million
Management Comments
Stéfan Descheemaeker, Nomad Foods’ Chief Executive Officer,
stated, “We are pleased to report strong operational and financial
performance in 2021 and a fifth consecutive year of revenue,
Adjusted EBITDA and Adjusted EPS growth. Following an exceptional
year of growth in 2020, we focused this year on consolidating our
consumer gains through product innovation and impactful promotion,
while ensuring our supply chain was fit for purpose as we drove
investments in capacity expansion and efficiency programs. Despite
a difficult operating environment, we delivered a 4% increase in
Adjusted EBITDA to €487 million and a 15% increase in Adjusted EPS
to €1.55, reflecting the resilience of our operating model, the
strength of our brands and our focus on maximizing value for our
shareholders.”
Noam Gottesman, Nomad Foods’ Co-Chairman and Founder, commented,
“Our 2021 results mark a new record level of financial performance
for our company. In addition to delivering Adjusted EPS at the
top-end of guidance, this year's notable achievements include a
successful refinancing of our debt, the integration of Findus
Switzerland, the acquisition of Fortenova's frozen food business
for €615 million, as well as over $75 million of share repurchases
during the fourth quarter. Having established a strong platform for
growth over the last five years, we are confident our business is
well-positioned to repeat this pattern of growth in 2022 and
beyond."
Fourth Quarter of 2021 results compared to the Fourth Quarter
of 2020
- Revenue increased 7.0% to €704 million. Organic
revenue decline of 4.5% was driven by a 3.1% decline in
volume/mix and a 1.4% decline in price.
- Adjusted gross profit decreased 10% to €186 million.
Adjusted Gross margin declined 500 basis points to 26.5% due to
cost of goods inflation and promotions. The inclusion of Findus
Switzerland and Fortenova Frozen, whose margins are seasonally low
during the fourth quarter, diluted gross margins by 150 basis
points. Fortenova Frozen's gross margins are expected to be
slightly accretive on a full year basis in 2022.
- Adjusted operating expenses decreased 9% to €94 million,
reflecting a more normalized level of Advertising and promotion
spend relative to the prior year where the company invested €10
million behind new consumer retention and brand building
activities. Indirect expenses increased in-line with revenues.
- Adjusted EBITDA decreased 5% to €113 million and
Adjusted Profit after tax decreased 15% to €58 million due
to the aforementioned factors.
- Adjusted EPS decreased 13% to €0.33, reflecting growth
in Adjusted Profit after tax. Reported EPS decreased 50% to
€0.16.
Year Ended 2021 results compared to the Year Ended of
2020
- Revenue increased 3.6% to €2,607 million. Organic
revenue decline of 2.1% was driven by a 1.6% decline in
volume/mix and a 0.5% decline in price.
- Adjusted gross profit decreased 1% to €753 million.
Adjusted Gross margin declined 140 basis points to 28.9% due to
cost of goods inflation and mix from the acquisitions of Findus
Switzerland and Fortenova Frozen.
- Adjusted operating expenses decreased 7% to €338 million
reflecting a decline in both Advertising and promotion and Indirect
expense.
- Adjusted EBITDA increased 4% to €487 million and
Adjusted Profit after tax increased 5% to €277 million, due
to the aforementioned factors.
- Adjusted EPS increased 15% to €1.55 and Reported EPS
decreased 11% to €1.02.
2022 Guidance
For the full year 2022, management expects double digit growth
in Adjusted EPS to a range of €1.71 to €1.75. Full year guidance
assumes reported revenue growth of high single-digit percentage and
organic revenue growth at a low-single digit percentage.
Conference Call and Webcast
The Company will host a conference call with members of the
executive management team to discuss these results today, Thursday,
February 24, 2022 at 1:30 p.m. GMT (8:30 a.m. Eastern Standard
Time). A live audio webcast of the conference call and an
accompanying presentation will both be available at Nomad Foods’
website at www.nomadfoods.com under Investor Relations. A replay of
the webcast will be available on the Company website for two weeks
following the event. Additionally, participants in North America
may access the live call by dialing +1-877-451-6152 and
international participants may dial +1-201-389-0879; the passcode
is 13726325#.
About Nomad Foods
Nomad Foods (NYSE: NOMD) is Europe’s leading frozen food
company. The Company’s portfolio of iconic brands, which includes
Birds Eye, Findus, iglo, Ledo and Frikom, 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.
Financial Information
The audit of the financial information included in this press
release has not been completed. As a result, such financial
information is preliminary, constitutes forward-looking statements
and is subject to adjustment based on completion of the audit
process. The Company expects to file its audited financial results
in early March.
Nomad Foods is presenting Adjusted and Organic financial
information, which is considered non-IFRS financial information,
for the three and twelve months ended December 31, 2021 and for
comparative purposes, the three and twelve months ended December
31, 2020.
Adjusted financial information for the three and twelve months
ended December 31, 2021 and 2020 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.
Adjusted EBITDA is profit or loss for the period before
taxation, net financing costs, depreciation and amortization,
adjusted to exclude, when they occur, the impacts of exited
markets, acquisition purchase price adjustments and exceptional
items such as restructuring charges, goodwill and intangible asset
impairment charges 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 Profit for the period is defined as profit for the
period excluding, when they occur, the impacts of exited markets,
acquisition purchase price adjustments 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
Profit after tax provides important comparability of underlying
operating results, allowing investors and management to assess
operating performance on a consistent basis.
Adjusted EPS is defined as basic earnings per share excluding,
when they occur, the impacts of exited markets, acquisition
purchase price adjustments 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 growth/(decline) is an adjusted measurement of
our operating results. The comparison for the three and twelve
months ended December 31, 2021 and 2020 presented in this press
release takes into consideration only those activities that were in
effect during both time periods. Organic revenue growth/(decline)
reflects reported revenue adjusted for currency translation and
non-comparable trading items such as expansion, acquisitions,
disposals, closures, trading day impacts or any other event that
artificially impacts the comparability of our results.
Adjusted Gross Profit and adjusted gross margin exclude
acquisition purchase price adjustments within cost of goods
sold.
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 December 31, 2021
and December 31, 2020
Three months ended December
31, 2021
Three months ended December
31, 2020
€m
€m
Revenue
704.0
657.7
Cost of sales
(523.7
)
(450.6
)
Gross profit
180.3
207.1
Other operating expenses
(98.7
)
(113.9
)
Exceptional items
(23.7
)
6.7
Operating profit
57.9
99.9
Finance income
1.6
0.1
Finance costs
(17.2
)
(19.6
)
Net financing costs
(15.6
)
(19.5
)
Profit before tax
42.3
80.4
Taxation
(13.5
)
(21.7
)
Profit for the period
28.8
58.7
Basic earnings per share
Weighted average shares outstanding in
millions
178.1
179.4
Basic earnings per share in €
0.16
0.33
Diluted earnings per share
Weighted average shares outstanding in
millions
178.1
183.2
Diluted earnings per share in €
0.16
0.32
Statements of Profit or Loss
Twelve months ended December 31, 2021
(unaudited) and December 31, 2020 (audited)
Twelve months ended December
31, 2021
Twelve months ended December
31, 2020
€m
€m
Revenue
2,606.6
2,515.9
Cost of sales
(1,862.3
)
(1,753.4
)
Gross profit
744.3
762.5
Other operating expenses
(356.3
)
(382.7
)
Exceptional items
(45.3
)
(20.6
)
Operating profit
342.7
359.2
Finance income
0.1
4.7
Finance costs
(106.1
)
(68.4
)
Net financing costs
(106.0
)
(63.7
)
Profit before tax
236.7
295.5
Taxation
(55.7
)
(70.4
)
Profit for the period
181.0
225.1
Attributable to:
Equity owners of the parent
181.0
225.2
Non-controlling interests
—
(0.1
)
181.0
225.1
Basic earnings per share in €
1.02
1.16
Diluted earnings per share in €
1.02
1.14
Nomad Foods Limited As Reported
Statements of Financial
Position
As at December 31, 2021 (unaudited) and
December 31, 2020 (unaudited)
As at December 31,
2021
As at December 31, 2020
Restated*
€m
€m
Non-current assets
Goodwill
2,099.4
1,902.5
Intangibles
2,455.7
2,155.7
Property, plant and equipment
549.4
422.2
Other non-current assets
8.9
1.1
Derivative financial instruments
—
17.2
Deferred tax assets
128.3
113.5
Total non-current assets
5,241.7
4,612.2
Current assets
Cash and cash equivalents
254.2
393.2
Inventories
410.6
344.3
Trade and other receivables
234.6
185.0
Indemnification assets
9.5
15.4
Short-term investments
—
25.0
Derivative financial instruments
20.2
5.5
Total current assets
929.1
968.4
Total assets
6,170.8
5,580.6
Current liabilities
Trade and other payables
692.0
647.2
Current tax payable
198.5
166.2
Provisions
39.3
45.7
Loans and borrowings
29.1
22.5
Derivative financial instruments
7.3
35.5
Total current liabilities
966.2
917.1
Non-current liabilities
Loans and borrowings
2,198.3
1,736.3
Employee benefits
244.2
276.2
Other non-current liabilities
1.8
2.2
Provisions
2.9
6.1
Derivative financial instruments
20.8
89.5
Deferred tax liabilities
437.6
427.1
Total non-current liabilities
2,905.6
2,537.4
Total liabilities
3,871.8
3,454.5
Net assets
2,299.0
2,126.1
Equity attributable to equity
holders
Share capital and capital reserve
1,623.1
1,620.5
Share based compensation reserve
6.9
8.3
Founder Preferred Share Dividend
reserve
166.0
245.5
Translation reserve
105.1
84.7
Cash flow hedging reserve
10.5
(24.5
)
Retained earnings/(accumulated deficit
reserve)
387.4
191.6
Total equity
2,299.0
2,126.1
* The Statement of Financial Position as
at December 31, 2020 includes a restatement related to acquisition
accounting.
Nomad Foods Limited As Reported
Statements of Cash Flows
For the year ended December 31, 2021
(unaudited) and the year ended December 31, 2020 (audited)
For the Year ended December
31, 2021
For the Year ended December
31, 2020
€m
€m
Cash flows from operating
activities
Profit for the period
181.0
225.1
Adjustments for:
Exceptional items
45.3
20.6
Non-cash fair value purchase price
adjustment of inventory
8.4
—
Share based payment expense
5.1
9.0
Depreciation and amortization
71.6
67.6
Loss on disposal and impairment of
property, plant and equipment
0.7
0.9
Net finance costs
106.0
63.7
Taxation
55.7
70.4
Operating cash flow before changes in
working capital, provisions and exceptional items
473.8
457.3
Increase in inventories
(23.8
)
(12.7
)
Decrease/(increase) in trade and other
receivables
24.1
(1.8
)
(Decrease)/increase in trade and other
payables
(25.0
)
107.2
Increase in employee benefits and other
provisions
1.2
2.0
Cash generated from operations before
tax and exceptional items
450.3
552.0
Cash flows relating to exceptional
items
(48.8
)
(12.1
)
Tax paid
(95.2
)
(82.9
)
Net cash generated from operating
activities
306.3
457.0
Cash flows from investing
activities
Business combinations, net of cash
acquired
(597.3
)
(112.9
)
Purchase of property, plant and equipment
and intangibles
(79.2
)
(58.7
)
Purchase of investments
—
(25.0
)
Redemption of investments
16.5
25.2
Cash used in investing
activities
(660.0
)
(171.4
)
Cash flows from financing
activities
Proceeds from issuance of ordinary
shares
—
0.6
Repurchase of ordinary shares
(77.6
)
(608.6
)
Payments related to shares withheld for
tax
(22.6
)
(19.2
)
Issuance of new loan principal
800.0
—
Repayment of loan principal
(408.7
)
(11.7
)
Payment of lease liabilities
(19.4
)
(20.3
)
Payment of financing fees
(18.7
)
—
Interest paid
(36.7
)
(50.2
)
Interest received
0.1
0.7
Other financing cash flows
(2.0
)
(6.1
)
Net cash provided by/(used in)
financing activities
214.4
(714.8
)
Net decrease in cash and cash
equivalents
(139.3
)
(429.2
)
Cash and cash equivalents at beginning
of period
382.5
824.8
Effect of exchange rate fluctuations
11.0
(13.1
)
Cash and cash equivalents at end of
period*
254.2
382.5
*Cash and cash equivalents includes bank
overdrafts of €nil for the year ended December 31, 2021 (2020:
€10.7 million).
Nomad Foods Limited Reconciliation of Non-IFRS Financial
Measures
(In € millions, except per share data)
The following table reconciles adjusted financial information
for the three months ended December 31, 2021 to the reported
results of Nomad Foods for such period.
Adjusted Statement of Profit or Loss
(unaudited)
Three Months Ended December 31,
2021
€ in millions, except per share
data
As reported for the three
months ended December 31, 2021
Adjustments
As Adjusted for the three
months ended December 31, 2021
Revenue
704.0
—
704.0
Cost of sales
(523.7
)
6.1
(a)
(517.6
)
Gross profit
180.3
6.1
186.4
Other operating expenses
(98.7
)
4.3
(b)
(94.4
)
Exceptional items
(23.7
)
23.7
(c)
—
Operating profit
57.9
34.1
92.0
Finance income
1.6
(1.5
)
0.1
Finance costs
(17.2
)
1.0
(16.2
)
Net financing costs
(15.6
)
(0.5
)
(d)
(16.1
)
Profit before tax
42.3
33.6
75.9
Taxation
(13.5
)
(4.3
)
(e)
(17.8
)
Profit for the period
28.8
29.3
58.1
Weighted average shares outstanding in
millions - basic
178.1
—
178.1
Basic earnings per share
0.16
0.33
Weighted average shares outstanding in
millions - diluted
178.1
—
178.1
Diluted earnings per share
0.16
0.33
(a)
Represents non-cash fair value uplift of
inventory recorded as part of the Fortenova acquisition purchase
price accounting.
(b)
Share based payment charge including
employer payroll taxes of €3.5 million and non-operating M&A
related costs of €0.8 million.
(c)
Exceptional items which management
believes are non-recurring and do not have a continuing impact. See
table ‘Adjusted EBITDA (unaudited) three months ended December 31,
2021’ for a detailed list of exceptional items.
(d)
Elimination of a €1.0 million gain from
the reversal of an impairment loss on a short-term investment, €0.5
million of foreign exchange translation gains and €1.0 million of
foreign exchange losses on derivatives.
(e)
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 Limited Reconciliation of Non-IFRS Financial
Measures (continued)
The following table reconciles Adjusted EBITDA for the three
months ended December 31, 2021 to the reported results of Nomad
Foods for such period.
Adjusted EBITDA (unaudited)
Three Months Ended December 31,
2021
€ in millions
As reported for the three
months ended December 31, 2021
Profit for the period
28.8
Taxation
13.5
Net financing costs
15.6
Depreciation and amortization
20.9
Acquisition purchase price adjustments
6.1
(a)
Exceptional items:
Fortenova Group integration costs
2.9
(b)
Factory optimization
2.6
(c)
Brexit
0.6
(d)
Findus Switzerland integration costs
2.5
(e)
Business Transformation Program
11.7
(f)
Information Technology Transformation
program
4.2
(g)
Settlement of legacy matters
(0.8
)
(h)
Other Adjustments:
Other add-backs
4.3
(i)
Adjusted EBITDA(j)
112.9
(a)
Represents non-cash fair value uplift of
inventory recorded as part of the Fortenova acquisition purchase
price accounting.
(b)
Expenses associated with the integration
of the Fortenova Group acquired on September 30, 2021.
(c)
Expenses associated with a three-year
factory optimization program to develop a new suite of standard
manufacturing and supply chain processes, that will provide a
single network of optimized factories. The project was initiated in
2018.
(d)
Expenses related to preparations for the
impacts of the United Kingdom exiting the European Union to our
supply chain, such as tariffs and delays at ports of entry and
departure.
(e)
Expenses associated with the integration
of the Findus Switzerland business acquired on December 31,
2020.
(f)
Expenses associated with the start of a
multi-year, enterprise-wide transformation and optimization
program. Expenses in the period consist of restructuring and
transformational project costs, including business technology
transformation initiative costs and related professional fees.
(g)
Expenses associated with the Information
Technology Transformation program, which are primarily professional
fees.
(h)
Income and expenses associated with tax
and other liabilities relating to periods prior to acquisition of
the Findus and Iglo Groups.
(i)
Represents the elimination of share based
payment charge including employer payroll taxes of €3.5 million and
elimination of non-operating M&A related costs of €0.8
million.
(j)
Adjusted EBITDA margin of 16.0% for the
three months ended December 31, 2021 is calculated by dividing
Adjusted EBITDA by Revenue of €704.0 million.
Nomad Foods Limited Reconciliation of Non-IFRS Financial
Measures (continued)
The following table reconciles Adjusted financial information
for the three months ended December 31, 2020 to the reported
results of Nomad Foods for such period.
Adjusted Statements of Profit or Loss
(unaudited)
Three Months Ended December 31,
2020
€ in millions, except per share
data
As reported for the three
months ended December 31, 2020
Adjustments
As Adjusted for the three
months ended December 31, 2020
Revenue
657.7
—
657.7
Cost of sales
(450.6
)
—
(450.6
)
Gross profit
207.1
—
207.1
Other operating expenses
(113.9
)
10.2
(a)
(103.7
)
Exceptional items
6.7
(6.7
)
(b)
—
Operating profit
99.9
3.5
103.4
Finance income
0.1
—
0.1
Finance costs
(19.6
)
2.8
(16.8
)
Net financing costs
19.5
2.8
(c)
(16.7
)
Profit before tax
80.4
6.3
86.7
Taxation
(21.7
)
3.1
(d)
(18.6
)
Profit for the period
58.7
9.4
68.1
Weighted average shares outstanding in
millions - basic
179.4
179.4
Basic earnings per share
0.33
0.38
Weighted average shares outstanding in
millions - diluted
183.2
(3.8
)
(e)
179.4
Diluted earnings per share
0.32
0.38
(a)
Share based payment charge including
employer payroll taxes of €4.5 million and non-operating M&A
related costs of €5.7 million.
(b)
Exceptional items which management
believes are non-recurring and do not have a continuing impact. See
table ‘Adjusted EBITDA (unaudited) three months ended December 31,
2020’ for a detailed list of exceptional items.
(c)
Elimination of €1.7 million of foreign
exchange translation losses and €1.1 million of foreign exchange
losses on derivatives.
(d)
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.
(e)
Adjustment to eliminate the dilutive
effect of the Founder Preferred Share Dividend earned as of
December 31, 2020 but for which shares were issued on January 4,
2021.
Nomad Foods Limited Reconciliation of Non-IFRS Financial
Measures (continued)
The following table reconciles Adjusted EBITDA for the three
months ended December 31, 2020 to the reported results of Nomad
Foods for such period.
Adjusted EBITDA (unaudited) Three Months Ended December 31,
2020
€ in millions
As reported for the three
months ended December 31, 2020
Profit for the period
58.7
Taxation
21.7
Net financing costs
19.5
Depreciation and amortization
16.0
Exceptional items:
Brexit
0.7
(a)
Findus Switzerland integration costs
0.3
(b)
Goodfella's Pizza & Aunt Bessie's
integration costs
0.3
(c)
Factory optimization
2.4
(d)
Supply chain reconfiguration
(12.5
)
(e)
Business Transformation Program
2.3
(f)
Settlement of legacy matters
(0.2
)
(g)
Other Adjustments:
Other add-backs
10.2
(h)
Adjusted EBITDA(i)
119.4
(a)
Expenses related to preparations for the
potential adverse impacts of the United Kingdom exiting the
European Union to our supply chain, such as tariffs and delays at
ports of entry and departure.
(b)
Expenses associated with the integration
of the Findus Switzerland business acquired on December 31,
2020.
(c)
Expenses associated with the integration
of the Goodfella's pizza and Aunt Bessie's businesses which were
acquired in 2018.
(d)
Expenses associated with a three-year
factory optimization program to develop a new suite of standard
manufacturing and supply chain processes, that will provide a
single network of optimized factories. The project was initiated in
2018.
(e)
Income recognized on reaching an agreement
to end the leasehold on a cold store in Sweden.
(f)
Expenses associated with the start of a
multi-year, enterprise-wide transformation and optimization
program.
(g)
Income and expenses associated with tax
and other liabilities relating to periods prior to acquisition of
the Findus and Iglo Groups.
(h)
Represents the elimination of share based
payment charge including employer payroll taxes of €4.5 million and
elimination of non-operating M&A related costs of €5.7
million.
(i)
Adjusted EBITDA margin of 18.2% for the
three months ended December 31, 2020 is calculated by dividing
Adjusted EBITDA by Revenue of €657.7 million.
Nomad Foods Limited Reconciliation of Non-IFRS Financial
Measures (continued)
The following table reconciles adjusted financial information
for the twelve months ended December 31, 2021 to the reported
results of Nomad Foods for such period.
Adjusted Statement of Profit or Loss
(unaudited)
Twelve Months Ended December 31,
2021
€ in millions, except per share
data
As reported for the twelve
months ended December 31, 2021
Adjustments
As Adjusted for the twelve
months ended December 31, 2021
Revenue
2,606.6
—
2,606.6
Cost of sales
(1,862.3
)
8.4
(a)
(1,853.9
)
Gross profit
744.3
8.4
752.7
Other operating expenses
(356.3
)
18.7
(b)
(337.6
)
Exceptional items
(45.3
)
45.3
(c)
—
Operating profit
342.7
72.4
415.1
Finance income
0.1
—
0.1
Finance costs
(106.1
)
41.9
(64.2
)
Net financing costs
(106.0
)
41.9
(d)
(64.1
)
Profit before tax
236.7
114.3
351.0
Taxation
(55.7
)
(18.7
)
(e)
(74.4
)
Profit for the period
181.0
95.6
276.6
Weighted average shares outstanding in
millions - basic
178.1
—
178.1
Basic earnings per share
1.02
1.55
Weighted average shares outstanding in
millions - diluted
178.1
—
178.1
Diluted earnings per share
1.02
1.55
(a)
Represents non-cash fair value uplift of
inventory recorded as part of the Findus Switzerland and Fortenova
acquisition purchase price accounting.
(b)
Share based payment charge including
employer payroll taxes of €5.8 million and non-operating M&A
related costs of €12.9 million.
(c)
Exceptional items which management
believes are non-recurring and do not have a continuing impact. See
table ‘Adjusted EBITDA (unaudited) twelve months ended December 31,
2021’ for a detailed list of exceptional items.
(d)
Elimination of €17.9 million of charges
recognized as part of refinancing activities, a one-time net €8.6
million loss from the impairment of a short-term investment, which
was made with surplus cash as part of our cash management
activities, €4.0 million of foreign exchange translation losses and
€11.4 million of foreign exchange losses on derivatives.
(e)
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 Limited Reconciliation of Non-IFRS Financial
Measures (continued)
The following table reconciles Adjusted EBITDA for the twelve
months ended December 31, 2021 to the reported results of Nomad
Foods for such period:
Adjusted EBITDA (unaudited)
Twelve Months Ended December 31,
2021
€ in millions
As reported for the twelve
months ended December 31, 2021
Profit for the period
181.0
Taxation
55.7
Net financing costs
106.0
Depreciation and amortization
71.6
Acquisition purchase price adjustments
8.4
(a)
Exceptional items:
Findus Switzerland integration costs
6.2
(b)
Brexit
5.3
(c)
Information Technology Transformation
program
4.2
(d)
Business Transformation Program
18.8
(e)
Fortenova Group integration costs
3.5
(f)
Factory optimization
4.9
(g)
Settlement of legacy matters
(2.6
)
(h)
Release of indemnification assets
5.0
(i)
Other Adjustments:
Other add-backs
18.7
(j)
Adjusted EBITDA(k)
486.7
(a)
Represents non-cash fair value uplift of
inventory recorded as part of the Findus Switzerland and Fortenova
acquisition purchase price accounting.
(b)
Expenses associated with the integration
of the Findus Switzerland business acquired on December 31,
2020.
(c)
Expenses related to preparations for the
potential adverse impacts of the United Kingdom exiting the
European Union to our supply chain, such as tariffs and delays at
ports of entry and departure.
(d)
Expenses associated with the Information
Technology Transformation program, which are primarily professional
fees.
(e)
Expenses associated with the start of a
multi-year, enterprise-wide transformation and optimization
program. Expenses in the period consist of restructuring and
transformational project costs, including business technology
transformation initiative costs and related professional fees.
(f)
Expenses associated with the integration
of the Fortenova Group acquired on September 30, 2021.
(g)
Expenses associated with a three-year
factory optimization program to develop a new suite of standard
manufacturing and supply chain processes, that will provide a
single network of optimized factories. The project was initiated in
2018.
(h)
Income and expenses associated with tax
and other liabilities relating to periods prior to acquisition of
the Findus and Iglo Groups.
(i)
Charge for the release of shares held in
escrow as part of the consideration on the acquisition of the
Findus Group.
(j)
Represents the elimination of share based
payment charge including employer payroll taxes of €5.8 million and
elimination of non-operating M&A related costs of €12.9
million.
(k)
Adjusted EBITDA margin of 18.7% for the
twelve months ended December 31, 2021 is calculated by dividing
Adjusted EBITDA by Revenue of €2,606.6 million.
Nomad Foods Limited Reconciliation of Non-IFRS Financial
Measures (continued)
The following table reconciles Adjusted financial information
for the twelve months ended December 31, 2020 to the reported
results of Nomad Foods for such period.
Adjusted Statements of Profit or Loss
(unaudited)
Twelve Months Ended December 31,
2020
€ in millions, except per share
data
As reported for the twelve
months ended December 31, 2020
Adjustments
As Adjusted for the twelve
months ended December 31, 2020
Revenue
2,515.9
—
2,515.9
Cost of sales
(1,753.4
)
—
(1,753.4
)
Gross profit
762.5
—
762.5
Other operating expenses
(382.7
)
19.4
(a)
(363.3
)
Exceptional items
(20.6
)
20.6
(b)
—
Operating profit
359.2
40.0
399.2
Finance income
4.7
(4.0
)
0.7
Finance costs
(68.4
)
1.5
(66.9
)
Net financing costs
(63.7
)
(2.5
)
(c)
(66.2
)
Profit before tax
295.5
37.5
333.0
Taxation
(70.4
)
—
(d)
(70.4
)
Profit for the period
225.1
37.5
262.6
Profit attributable to:
Equity owners of the parent
225.2
37.5
262.7
Non-controlling interests
(0.1
)
—
(0.1
)
225.1
37.5
262.6
Weighted average shares outstanding in
millions - basic
194.0
—
194.0
Basic earnings per share
1.16
1.35
Weighted average shares outstanding in
millions - diluted
197.9
(3.9
)
(e)
194.0
Diluted earnings per share
1.14
1.35
(a)
Share based payment charge including
employer payroll taxes of €12.1 million and non-operating M&A
related costs of €7.3 million.
(b)
Exceptional items which management
believes are non-recurring and do not have a continuing impact. See
table ‘Adjusted EBITDA (unaudited) twelve months ended December 31,
2020’ for a detailed list of exceptional items.
(c)
Elimination of €4.0 million of foreign
exchange translation gains and €1.5 million of foreign exchange
losses on derivatives.
(d)
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.
(e)
Adjustment to eliminate the dilutive
effect of the Founder Preferred Share Dividend earned as of
December 31, 2020 but for which shares were issued on January 4,
2021.
Nomad Foods Limited Reconciliation of Non-IFRS Financial
Measures (continued)
The following table reconciles Adjusted EBITDA for the twelve
months ended December 31, 2020 to the reported results of Nomad
Foods for such period:
Adjusted EBITDA (unaudited)
Twelve Months Ended December 31,
2020
€ in millions
As reported for the twelve
months ended December 31, 2020
Profit for the period
225.1
Taxation
70.4
Net financing costs
63.7
Depreciation and amortization
67.6
Exceptional items:
Brexit
1.6
(a)
Supply chain reconfiguration
(12.5
)
(b)
Findus Switzerland integration costs
0.3
(c)
Goodfella's Pizza & Aunt Bessie's
integration costs
4.0
(d)
Factory optimization
10.0
(e)
Release of indemnification assets
17.8
(f)
Settlement of legacy matters
(2.9
)
(g)
Business Transformation Program
2.3
(h)
Other Adjustments:
Other add-backs
19.4
(i)
Adjusted EBITDA(j)
466.8
(a)
Expenses related to preparations for the
potential adverse impacts of the United Kingdom exiting the
European Union to our supply chain, such as tariffs and delays at
ports of entry and departure.
(b)
Income recognized on reaching an agreement
to end the leasehold on a cold store in Sweden.
(c)
Expenses associated with the integration
of the Findus Switzerland business acquired on December 31,
2020.
(d)
Expenses associated with the integration
of the Goodfella's pizza and Aunt Bessie's businesses which were
acquired in 2018.
(e)
Expenses associated with a three-year
factory optimization program to develop a new suite of standard
manufacturing and supply chain processes, that will provide a
single network of optimized factories. The project was initiated in
2018.
(f)
Charge for the release of shares held in
escrow as part of the consideration on the acquisition of the
Findus Group..
(g)
Income and expense associated with tax and
other liabilities relating to periods prior to acquisition of the
Findus and Iglo Groups.
(h)
Expenses associated with the start of a
multi-year, enterprise-wide transformation and optimization
program.
(i)
Represents the elimination of share based
payment charge including employer payroll taxes of €12.1 million
and elimination of non-operating M&A related costs of €7.3
million.
(j)
Adjusted EBITDA margin of 18.6% for the
twelve months ended December 31, 2020 is calculated by dividing
Adjusted EBITDA by Revenue of €2,515.9 million.
Nomad Foods Limited Adjusted Financial Information
(continued)
Appendix 1: Reconciliation from reported to organic revenue
growth/(decline)
Year on Year Growth - December 31, 2021 compared with
December 31, 2020:
Three Months Ended December
31, 2021
Twelve Months Ended December
31, 2021
YoY change
YoY change
Reported Revenue Growth
7.0 %
3.6 %
Of which:
Organic Revenue Growth/(Decline)
(4.5) %
(2.1) %
Acquisitions
9.3 %
3.0 %
Calendar effect (a)
— %
(0.3) %
Translational FX (b)
2.2 %
3.0 %
Total
7.0 %
3.6 %
(a)
Driven by an increased number of trading
days versus the prior year period, including an extra day in
February due to a leap year.
(b)
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 future operating
and financial performance of the Company, including the Company's
2022 preliminary guidance with respect to reported revenue growth,
organic revenue growth, Adjusted EPS and Adjusted EPS growth. 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) the Company’s ability to successfully identify suitable
acquisition targets and adequately evaluate the potential
performance of such acquisition targets; (ii) the Company’s ability
to successfully implement its strategies (including its M&A
strategy) and strategic initiatives and to recognize the
anticipated benefits of such strategic initiatives; (iii) the
Company’s ability to accurately predict the performance of its
Green Cuisine brand and the Findus Switzerland and Fortenova Frozen
businesses' and their impact on the Company’s growth; (iv) the
Company’s ability to effectively compete in its markets, including
the ability of Green Cuisine to effectively compete in Continental
Europe; (v) changes in consumer preferences, such as meat
substitutes, and the Company’s failure to anticipate and respond to
such changes or to successfully develop and renovate products; (vi)
the effects of reputational damage from unsafe or poor quality food
products; (vii) the risk that securities markets will react
negatively to actions by the Company; (viii) the adequacy of the
Company’s cash resources to achieve its anticipated growth agenda;
(ix) increases in operating costs, including labor costs, and the
Company’s ability to manage its cost structure; (x) fluctuations in
the availability of food ingredients and packaging materials that
the Company uses in its products; (xi) the Company’s ability to
effectively mitigate factors that negatively impact its supply of
raw materials; (xii) the Company’s ability to protect its brand
names and trademarks; (xiii) uncertainty about the terms of the
trade agreement between the UK and the EU associated with Brexit,
as well as the potential adverse impact of Brexit on currency
exchange rates, global economic conditions and cross-border
agreements that affect the Company’s business; (xiv) loss of the
Company’s financial arrangements with respect to receivables
factoring; (xv) the loss of any of the Company’s major customers or
a decrease in demand for its products; (xvi) economic conditions
that may affect the Company’s future performance including exchange
rate fluctuations; (xvii) the Company’s ability to successfully
interpret and respond to key industry trends and to realize the
expected benefits of its responsive actions; (xviii) the Company’s
failure to comply with, and liabilities related to, environmental,
health and safety laws and regulations; (xix) changes in applicable
laws or regulations; and (xx) 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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220224005221/en/
Nomad Foods Investor Relations Contacts John Mills
ICR +1-646-277-1254
Nomad Foods (NYSE:NOMD)
Historical Stock Chart
From Jun 2024 to Jul 2024
Nomad Foods (NYSE:NOMD)
Historical Stock Chart
From Jul 2023 to Jul 2024