Revenue growth of 26.7% with Adjusted EPS of
€0.52
Reiterate Full Year Adjusted EPS Guidance of
€1.65 - €1.71
FELTHAM, England, Nov. 9, 2022
/PRNewswire/ -- Nomad Foods Limited (NYSE: NOMD), today reported
financial results for the three and nine month periods ended
September 30, 2022. Key operating
highlights and financial performance for the third quarter 2022,
when compared to the third quarter 2021, include:
- Reported revenue increased 26.7% to €760 million
- Organic revenue increase of 7.2%
- Reported Profit for the period of €82 million
- Adjusted EBITDA increased 35.3% to €153 million
- Adjusted EPS increase 48.6% to €0.52
Management
Comments
Stéfan Descheemaeker, Nomad Foods' Chief Executive Officer,
stated, "I am pleased to report that Nomad Foods performed well in
the third quarter, delivering strong sales growth and Adjusted EPS
of €0.52, up nearly 50% year-on-year. Our revenues grew by nearly
27% in the quarter, reflecting organic revenue growth of more than
7% as well as the contribution from our recent acquisition. We are
also pleased to announce that we are extending our debt maturity
profile through a refinancing of our existing USD debt with
$830 million in term loans due in
2029. When finished, our debt portfolio will be fully covered
through mid-2028 and 2029 at an attractive average interest cost,
with roughly 75% of our debt effectively fixed until 2027. We are
reiterating our full-year 2022 Adjusted EPS expectation range of
€1.65 to €1.71 and we are confident in our ability to deliver our
target of €2.30 Adjusted EPS for 2025."
Noam Gottesman, Nomad Foods'
Co-Chairman and Founder, commented, "Nomad Foods reported another
quarter of strong results boosted by our great brands, efficient
supply chain and world-class people. Nomad has proven again to be a
resilient business as disciplined procurement and supply chain
management provided high quality products with improved service
levels and strong margins. Furthermore, our debt refinancing
represents another important step in extending our debt profile and
controlling costs in a volatile macro environment. Although we see
challenges, we also see great areas of opportunity, and we will
continue to invest to capture those opportunities. We will maintain
our focus on accelerating sustainable growth while compounding the
value of our results for shareholders. We expect to keep this
momentum into 2023 and beyond."
Third Quarter of 2022 results
compared to the Third Quarter of 2021
- Revenue increased 26.7% to €760 million. Organic
revenue increase of 7.2% was comprised of a 3.4% decline in
volume/mix offset by a 10.6% increase in price.
- Gross profit increased 31.9% to €221 million. Gross
margin increased 110 basis points to 29.1%, driven by higher
pricing offsetting higher raw material costs across the
business.
- Adjusted operating expenses increased 26.6% to €91
million, driven by the inclusion of the Fortenova's frozen food
business acquisition.
- Adjusted EBITDA increased 35.3% to €153 million and
Adjusted Profit for the period increased 42.6% to €90
million due to the aforementioned factors.
- Adjusted EPS increased 48.6% to €0.52. Reported EPS
increased 62.1% to €0.47.
First Nine Months of 2022
results compared to the First Nine Months of 2021
- Revenue increased 15.1% to €2,190 million. Organic
revenue decline of 0.4% was comprised of a 5.9% decline in
volume/mix offset by a 5.5% increase in price.
- Adjusted Gross profit increased 9.9% to €623 million.
Adjusted gross margin decreased 140 basis points to 28.4%, driven
by higher raw material costs, partially offset by higher
pricing.
- Adjusted operating expenses increased 13.9% to €277
million, driven primarily by the first-time inclusion of our
Adriatic region acquisition.
- Adjusted EBITDA increased 10.1% to €411 million and
Adjusted Profit for the period increased 7.9% to €236
million due to the aforementioned factors.
- Adjusted EPS increased 9.8% to €1.35, reflecting an
increase in Adjusted Profit after tax. Reported EPS increased 43.5%
to €1.22.
2022 Guidance
The Company is affirming its Adjusted EPS guidance range of
€1.65 to €1.71, representing high-single digit Adjusted EPS growth.
This guidance assumes high-single digit revenue growth, low-single
digit organic revenue growth, and the inclusion of Fortenova's
frozen food business for the full-year.
Conference Call and
Webcast
The Company will host a conference call with members of the
executive management team to discuss these results today,
Wednesday, November 9, 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. Additionally,
participants in North America may
access the live call by dialing +1-844-826-3033 and international
participants may dial +1-412-317-5185.
A replay of the webcast will be available on the Company website
for two weeks following the event. This can be accessed by dialing
+1-844-512-2921 and by international listeners by dialing
+1-412-317-6671; the replay pin number is 10171945.
Nomad Foods Contacts
Investor Relations
Contact
Anthony Bucalo
Nomad Foods Limited
+1-914-907-8724
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
Nomad Foods is presenting Adjusted and Organic financial
information, which is considered non-IFRS financial information,
for the three and nine months ended September 30, 2022 and for
comparative purposes, the three and nine months ended
September 30, 2021.
Adjusted financial information for the three and nine months
ended September 30, 2022 and 2021 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, exceptional items and foreign currency translation
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 nine months
ended September 30, 2022 and 2021 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 accounting 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 13, the non-IFRS reconciliation tables
attached hereto and the schedules accompanying this release for an
explanation and reconciliation of the Adjusted and Organic
financial information to the most directly comparable IFRS
measure.
Nomad Foods Limited
As Reported
|
Statements of Profit
or Loss (unaudited)
|
Three months ended
September 30, 2022 and September 30,
2021
|
|
|
Three months
ended
September 30, 2022
|
|
Three months
ended
September 30, 2021
|
|
€m
|
|
€m
|
Revenue
|
759.6
|
|
599.4
|
Cost of
sales
|
(538.5)
|
|
(431.8)
|
Gross
profit
|
221.1
|
|
167.6
|
Other operating
expenses
|
(93.4)
|
|
(80.5)
|
Exceptional
items
|
(18.9)
|
|
(6.5)
|
Operating
profit
|
108.8
|
|
80.6
|
Finance
income
|
12.1
|
|
10.4
|
Finance
costs
|
(16.5)
|
|
(25.4)
|
Net financing
costs
|
(4.4)
|
|
(15.0)
|
Profit before
tax
|
104.4
|
|
65.6
|
Taxation
|
(22.3)
|
|
(13.9)
|
Profit for the
period
|
82.1
|
|
51.7
|
|
|
|
|
Basic & diluted
earnings per share in €
|
0.47
|
|
0.29
|
Statements of Profit
or Loss (unaudited)
|
Nine months ended
September 30, 2022 and September 30,
2021
|
|
|
Nine months
ended
September 30, 2022
|
|
Nine months
ended
September 30, 2021
|
|
€m
|
|
€m
|
Revenue
|
2,189.5
|
|
1,902.6
|
Cost of
sales
|
(1,566.9)
|
|
(1,338.6)
|
Gross
profit
|
622.6
|
|
564.0
|
Other operating
expenses
|
(287.6)
|
|
(257.6)
|
Exceptional
items
|
(25.2)
|
|
(21.6)
|
Operating
profit
|
309.8
|
|
284.8
|
Finance
income
|
12.5
|
|
—
|
Finance
costs
|
(47.6)
|
|
(90.4)
|
Net financing
costs
|
(35.1)
|
|
(90.4)
|
Profit before
tax
|
274.7
|
|
194.4
|
Taxation
|
(62.0)
|
|
(42.2)
|
Profit for the
period
|
212.7
|
|
152.2
|
|
|
|
|
Basic and diluted
earnings per share in €
|
1.22
|
|
0.85
|
Nomad Foods Limited
As Reported
|
Statements of
Financial Position
|
As at
September 30, 2022 (unaudited) and December 31, 2021
(audited)
|
|
|
As at September 30,
2022
|
|
As at December 31,
2021
|
|
€m
|
|
€m
|
Non-current
assets
|
|
|
|
Goodwill
|
2,103.1
|
|
2,099.4
|
Intangibles
|
2,464.0
|
|
2,455.7
|
Property, plant and
equipment
|
536.7
|
|
549.4
|
Other non-current
assets
|
8.4
|
|
8.9
|
Derivative financial
instruments
|
154.1
|
|
—
|
Deferred tax
assets
|
99.6
|
|
128.3
|
Total non-current
assets
|
5,365.9
|
|
5,241.7
|
Current
assets
|
|
|
|
Cash and cash
equivalents
|
194.3
|
|
254.2
|
Inventories
|
504.5
|
|
410.6
|
Trade and other
receivables
|
342.4
|
|
234.6
|
Indemnification
assets
|
1.8
|
|
9.5
|
Derivative financial
instruments
|
59.1
|
|
20.2
|
Total current
assets
|
1,102.1
|
|
929.1
|
Total
assets
|
6,468.0
|
|
6,170.8
|
Current
liabilities
|
|
|
|
Trade and other
payables
|
667.5
|
|
692.0
|
Current tax
payable
|
216.2
|
|
198.5
|
Provisions
|
41.1
|
|
39.3
|
Loans and
borrowings
|
30.0
|
|
29.1
|
Derivative financial
instruments
|
0.6
|
|
7.3
|
Total current
liabilities
|
955.4
|
|
966.2
|
Non-current
liabilities
|
|
|
|
Loans and
borrowings
|
2,310.0
|
|
2,198.3
|
Employee
benefits
|
138.3
|
|
244.2
|
Other non-current
liabilities
|
1.3
|
|
1.8
|
Provisions
|
2.5
|
|
2.9
|
Derivative financial
instruments
|
0.2
|
|
20.8
|
Deferred tax
liabilities
|
457.2
|
|
437.6
|
Total non-current
liabilities
|
2,909.5
|
|
2,905.6
|
Total
liabilities
|
3,864.9
|
|
3,871.8
|
Net
assets
|
2,603.1
|
|
2,299.0
|
Equity attributable
to equity holders
|
|
|
|
Share capital and
capital reserve
|
1,596.7
|
|
1,623.1
|
Share-based
compensation reserve
|
11.4
|
|
6.9
|
Founder Preferred Share
Dividend reserve
|
166.0
|
|
166.0
|
Translation
reserve
|
95.3
|
|
105.1
|
Other
reserves
|
55.2
|
|
10.5
|
Retained
earnings
|
678.5
|
|
387.4
|
Total
equity
|
2,603.1
|
|
2,299.0
|
Nomad Foods Limited
As Reported
|
Statements of Cash
Flows (unaudited)
|
For the nine months
ended September 30, 2022 and the nine months ended September 30,
2021
|
|
|
For the nine months
ended
September 30, 2022
|
|
For the nine months
ended
September 30, 2021
|
|
€m
|
|
€m
|
Cash flows from
operating activities
|
|
|
|
Profit for the
period
|
212.7
|
|
152.2
|
Adjustments
for:
|
|
|
|
Exceptional
items
|
25.2
|
|
21.6
|
Non-cash fair value
purchase price adjustment of inventory
|
—
|
|
2.3
|
Share based payment
expense
|
5.9
|
|
1.8
|
Depreciation and
amortization
|
65.8
|
|
50.7
|
Loss/(gain) on
disposal of property, plant and equipment
|
0.3
|
|
(0.2)
|
Net finance
costs
|
35.1
|
|
90.4
|
Taxation
|
62.0
|
|
42.2
|
Operating cash flow
before changes in working capital, provisions and exceptional
items
|
407.0
|
|
361.0
|
Increase in
inventories
|
(116.3)
|
|
(39.5)
|
(Increase)/decrease in
trade and other receivables
|
(90.0)
|
|
7.9
|
Decrease in trade and
other payables
|
(16.4)
|
|
(82.4)
|
Increase in employee
benefits and other provisions
|
2.6
|
|
0.7
|
Cash generated from
operations before tax and exceptional items
|
186.9
|
|
247.7
|
Cash flows relating to
exceptional items
|
(46.2)
|
|
(23.2)
|
Tax paid
|
(43.8)
|
|
(62.9)
|
Net cash generated
from operating activities
|
96.9
|
|
161.6
|
Cash flows from
investing activities
|
|
|
|
Business combinations,
net of cash acquired
|
0.4
|
|
(597.3)
|
Purchase of property,
plant and equipment and intangibles
|
(55.4)
|
|
(50.7)
|
Redemption of
investments
|
—
|
|
15.5
|
Cash used in
investing activities
|
(55.0)
|
|
(632.5)
|
Cash flows from
financing activities
|
|
|
|
Repurchase of ordinary
shares
|
(26.8)
|
|
(10.5)
|
Issuance of new loan
principal
|
—
|
|
800.0
|
Repayment of loan
principal
|
(8.7)
|
|
(408.7)
|
Payments related to
shares withheld for taxes
|
(2.8)
|
|
(22.5)
|
Payment of lease
liabilities
|
(19.6)
|
|
(14.0)
|
Payment of financing
fees
|
—
|
|
(17.6)
|
Interest
paid
|
(49.4)
|
|
(31.3)
|
Interest
received
|
0.2
|
|
—
|
Other financing cash
flows
|
0.3
|
|
(2.3)
|
Net cash (used
in)/provided by financing activities
|
(106.8)
|
|
293.1
|
Net decrease in cash
and cash equivalents
|
(64.9)
|
|
(177.8)
|
Cash and cash
equivalents at beginning of period
|
254.2
|
|
382.5
|
Effect of exchange
rate fluctuations
|
4.4
|
|
6.9
|
Cash and cash
equivalents at end of period
|
193.7
|
|
211.6
|
Nomad Foods
Limited
|
Adjusted Financial
Information
|
(In € millions, except
per share data)
|
|
Reconciliation of
Non-IFRS Financial Measures
|
|
The following table
reconciles adjusted financial information for the three months
ended September 30, 2022 to the reported results of Nomad Foods for
such period.
|
|
Adjusted Statement
of Profit or Loss (unaudited)
|
Three Months Ended
September 30, 2022
|
|
€ in
millions, except per share data
|
As reported for
the
three months ended
September 30, 2022
|
|
Adjustments
|
|
|
|
As adjusted for
the
three months ended
September 30, 2022
|
Revenue
|
759.6
|
|
—
|
|
|
|
759.6
|
Cost of
sales
|
(538.5)
|
|
—
|
|
|
|
(538.5)
|
Gross
profit
|
221.1
|
|
—
|
|
|
|
221.1
|
Other operating
expenses
|
(93.4)
|
|
2.9
|
|
(a)
|
|
(90.5)
|
Exceptional
items
|
(18.9)
|
|
18.9
|
|
(b)
|
|
—
|
Operating
profit
|
108.8
|
|
21.8
|
|
|
|
130.6
|
Finance
income
|
12.1
|
|
(11.9)
|
|
|
|
0.2
|
Finance
costs
|
(16.5)
|
|
—
|
|
|
|
(16.5)
|
Net financing
costs
|
(4.4)
|
|
(11.9)
|
|
(c)
|
|
(16.3)
|
Profit before
tax
|
104.4
|
|
9.9
|
|
|
|
114.3
|
Taxation
|
(22.3)
|
|
(2.0)
|
|
(d)
|
|
(24.3)
|
Profit for the
period
|
82.1
|
|
7.9
|
|
|
|
90.0
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding in millions - basic
|
174.1
|
|
|
|
|
|
174.1
|
Basic earnings per
share
|
0.47
|
|
|
|
|
|
0.52
|
Weighted average shares
outstanding in millions - diluted
|
174.1
|
|
|
|
|
|
174.1
|
Diluted earnings per
share
|
0.47
|
|
|
|
|
|
0.52
|
|
|
(a)
|
Represents share based
payment charge including employer payroll taxes of €2.6 million and
non-operating M&A transaction costs of €0.3 million.
|
(b)
|
Represents exceptional
items which management believes are non-recurring and do not have a
continuing impact. See Note 6, Exceptional items, within 'Exhibit
99.2 - Condensed Consolidated Interim Financial Statements' for a
detailed list of exceptional items.
|
(c)
|
Elimination of €7.2
million of foreign exchange translation gains and €4.7 million of
gains on derivatives.
|
(d)
|
Represents 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.
|
Reconciliation of
Non-IFRS Financial Measures (continued)
|
|
The following table
reconciles adjusted financial information for the three months
ended September 30, 2021 to the reported results of Nomad Foods for
such period.
|
|
Adjusted Statement
of Profit or Loss (unaudited)
|
Three Months Ended
September 30, 2021
|
|
€ in
millions, except per share data
|
As reported for
the
three months ended
September 30, 2021
|
|
Adjustments
|
|
|
|
As adjusted for
the
three months ended
September 30, 2021
|
Revenue
|
599.4
|
|
—
|
|
|
|
599.4
|
Cost of
sales
|
(431.8)
|
|
—
|
|
|
|
(431.8)
|
Gross
profit
|
167.6
|
|
—
|
|
|
|
167.6
|
Other operating
expenses
|
(80.5)
|
|
9.0
|
|
(a)
|
|
(71.5)
|
Exceptional
items
|
(6.5)
|
|
6.5
|
|
(b)
|
|
—
|
Operating
profit
|
80.6
|
|
15.5
|
|
|
|
96.1
|
Finance
income
|
10.4
|
|
(10.4)
|
|
|
|
—
|
Finance
costs
|
(25.4)
|
|
8.8
|
|
|
|
(16.6)
|
Net financing
costs
|
(15.0)
|
|
(1.6)
|
|
(c)
|
|
(16.6)
|
Profit before
tax
|
65.6
|
|
13.9
|
|
|
|
79.5
|
Taxation
|
(13.9)
|
|
(2.5)
|
|
(d)
|
|
(16.4)
|
Profit for the
period
|
51.7
|
|
11.4
|
|
|
|
63.1
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding in millions - basic
|
178.2
|
|
|
|
|
|
178.2
|
Basic earnings per
share
|
0.29
|
|
|
|
|
|
0.35
|
Weighted average shares
outstanding in millions -
diluted
|
178.2
|
|
|
|
|
|
178.2
|
Diluted earnings per
share
|
0.29
|
|
|
|
|
|
0.35
|
|
|
(a)
|
Represents share based
payment charge including employer payroll taxes of €0.8 million and
non-operating M&A transaction costs of €8.2 million.
|
(b)
|
Represents exceptional
items which management believes are non-recurring and do not have a
continuing impact. See Note 6, Exceptional items, within 'Exhibit
99.2 - Condensed Consolidated Interim Financial Statements' for a
detailed list of exceptional items.
|
(c)
|
Elimination of a €2.8
million gain from the reversal of an impairment loss on a
short-term investment, €7.6 million of foreign exchange translation
losses and €8.8 million of losses on derivatives, which includes a
one-off non-cash charge of €7.8 million for changes to cross
currency interest rate swaps.
|
(d)
|
Represents 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.
|
Reconciliation of
Non-IFRS Financial Measures (continued)
|
|
The following table
reconciles adjusted financial information for the nine months ended
September 30, 2022 to the reported results of Nomad Foods for such
period.
|
|
Adjusted Statement
of Profit or Loss (unaudited)
|
Nine Months Ended
September 30, 2022
|
|
€ in
millions, except per share data
|
As reported for
the
nine months ended
September 30, 2022
|
|
Adjustments
|
|
|
|
As adjusted for
the
nine months ended
September 30, 2022
|
Revenue
|
2,189.5
|
|
—
|
|
|
|
2,189.5
|
Cost of
sales
|
(1,566.9)
|
|
—
|
|
|
|
(1,566.9)
|
Gross
profit
|
622.6
|
|
—
|
|
|
|
622.6
|
Other operating
expenses
|
(287.6)
|
|
10.6
|
|
(a)
|
|
(277.0)
|
Exceptional
items
|
(25.2)
|
|
25.2
|
|
(b)
|
|
—
|
Operating
profit
|
309.8
|
|
35.8
|
|
|
|
345.6
|
Finance
income
|
12.5
|
|
(12.3)
|
|
|
|
0.2
|
Finance
costs
|
(47.6)
|
|
—
|
|
|
|
(47.6)
|
Net financing
costs
|
(35.1)
|
|
(12.3)
|
|
(c)
|
|
(47.4)
|
Profit before
tax
|
274.7
|
|
23.5
|
|
|
|
298.2
|
Taxation
|
(62.0)
|
|
(0.5)
|
|
(d)
|
|
(62.5)
|
Profit for the
period
|
212.7
|
|
23.0
|
|
|
|
235.7
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding in millions - basic
|
174.2
|
|
|
|
|
|
174.2
|
Basic earnings per
share
|
1.22
|
|
|
|
|
|
1.35
|
Weighted average shares
outstanding in millions - diluted
|
174.2
|
|
|
|
|
|
174.2
|
Diluted earnings per
share
|
1.22
|
|
|
|
|
|
1.35
|
|
|
(a)
|
Represents share based
payment charge including employer payroll taxes of €7.4 million and
non-operating M&A transaction costs of €3.2 million.
|
(b)
|
Exceptional items which
management believes are non-recurring and do not have a continuing
impact. See Note 6, Exceptional items, within 'Exhibit 99.2 -
Condensed Consolidated Interim Financial Statements' for a detailed
list of exceptional items.
|
(c)
|
Elimination of €10.8
million of foreign exchange translation gains and €1.5 million of
gains on derivatives.
|
(d)
|
Represents 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.
|
Reconciliation of
Non-IFRS Financial Measures (continued)
|
|
The following table
reconciles adjusted financial information for the nine months ended
September 30, 2021 to the reported results of Nomad Foods for such
period.
|
|
Adjusted Statement
of Profit or Loss (unaudited)
|
Nine Months Ended
September 30, 2021
|
|
€ in
millions, except per share data
|
As reported for
the
nine months ended
September 30, 2021
|
|
Adjustments
|
|
|
|
As adjusted for
the
nine months ended
September 30, 2021
|
Revenue
|
1,902.6
|
|
—
|
|
|
|
1,902.6
|
Cost of
sales
|
(1,338.6)
|
|
2.3
|
|
(a)
|
|
(1,336.3)
|
Gross
profit
|
564.0
|
|
2.3
|
|
|
|
566.3
|
Other operating
expenses
|
(257.6)
|
|
14.4
|
|
(b)
|
|
(243.2)
|
Exceptional
items
|
(21.6)
|
|
21.6
|
|
(c)
|
|
—
|
Operating
profit
|
284.8
|
|
38.3
|
|
|
|
323.1
|
Finance
costs
|
(90.4)
|
|
42.4
|
|
|
|
(48.0)
|
Net financing
costs
|
(90.4)
|
|
42.4
|
|
(d)
|
|
(48.0)
|
Profit before
tax
|
194.4
|
|
80.7
|
|
|
|
275.1
|
Taxation
|
(42.2)
|
|
(14.4)
|
|
(e)
|
|
(56.6)
|
Profit for the
period
|
152.2
|
|
66.3
|
|
|
|
218.5
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding in millions - basic
|
178.1
|
|
|
|
|
|
178.1
|
Basic earnings per
share
|
0.85
|
|
|
|
|
|
1.23
|
Weighted average shares
outstanding in millions - diluted
|
178.1
|
|
|
|
|
|
178.1
|
Diluted earnings per
share
|
0.85
|
|
|
|
|
|
1.23
|
|
|
(a)
|
Represents non-cash
fair value uplift of inventory recorded as part of the Findus
Switzerland purchase price accounting.
|
(b)
|
Represents share based
payment expense including employer payroll taxes of €2.3 million
and non-operating M&A transaction costs of €12.1
million.
|
(c)
|
Exceptional items which
management believes are non-recurring and do not have a continuing
impact. See Note 6, Exceptional items, within 'Exhibit 99.2 -
Condensed Consolidated Interim Financial Statements' for a detailed
list of exceptional items.
|
(d)
|
Elimination of €17.9
million of charges recognized as part of the refinancing on June
24, 2021, a one-time net €9.6 million loss from the impairment of a
short-term investment, which was made with surplus cash as part of
our cash management activities, €4.5 million of foreign exchange
translation losses and €10.4 million of losses on derivatives,
which includes a one-off non-cash charge of €7.8 million for
changes to cross currency interest rate swaps.
|
(e)
|
Represents 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.
|
Reconciliation of
Non-IFRS Financial Measures (continued)
|
|
Reconciliation of
Profit for the period to Adjusted EBITDA (unaudited)
|
|
|
Three months
ended
|
|
Nine months
ended
|
€ in
millions
|
September 30,
2022
|
|
September 30,
2021
|
|
September 30,
2022
|
|
September 30,
2021
|
Profit for the
period
|
82.1
|
|
51.7
|
|
212.7
|
|
152.2
|
Taxation
|
22.3
|
|
13.9
|
|
62.0
|
|
42.2
|
Net financing
costs
|
4.4
|
|
15.0
|
|
35.1
|
|
90.4
|
Depreciation &
amortization
|
22.6
|
|
17.1
|
|
65.8
|
|
50.7
|
Acquisition purchase
price adjustments (a)
|
—
|
|
—
|
|
—
|
|
2.3
|
Exceptional items
(b)
|
18.9
|
|
6.5
|
|
25.2
|
|
21.6
|
Other add-backs
(c)
|
2.9
|
|
9.0
|
|
10.6
|
|
14.4
|
Adjusted
EBITDA
|
153.2
|
|
113.2
|
|
411.4
|
|
373.8
|
|
|
|
|
|
|
|
|
Revenue
|
759.6
|
|
599.4
|
|
2,189.5
|
|
1,902.6
|
Adjusted EBITDA
margin (d)
|
20.2 %
|
|
18.9 %
|
|
18.8 %
|
|
19.6 %
|
|
|
(a)
|
Represents non-cash
fair value uplift of inventory recorded as part of the Findus
Switzerland 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)
|
Represents the
elimination of share-based payment charges including employer
payroll taxes for the three month period to September 30, 2022 of
€2.6 million (2021: €0.8 million) and for the nine months ended
September 30, 2022 of €7.4 million (2021: €2.3 million) as well as
the elimination of non-operating M&A transaction costs for the
three month period to September 30, 2022 of €0.3 million
(2021: €8.2 million) and for the nine months ended September 30,
2022 of €3.2 million (2021: €12.1 million). We exclude these 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.
|
(d)
|
Adjusted EBITDA margin
is calculated by dividing Adjusted EBITDA by Revenue.
|
Nomad Foods
Limited
|
Adjusted Financial
Information (continued)
|
|
Appendix 1:
Reconciliation from reported to organic revenue
growth/(decline)
|
|
Year on Year Growth
- September 30, 2022 compared with September 30,
2021:
|
|
|
Three Months
Ended
September 30, 2022
|
|
Nine Months
Ended
September 30, 2022
|
|
YoY
change
|
|
YoY
change
|
Reported Revenue
Growth
|
26.7 %
|
|
15.1 %
|
|
|
|
|
Of which:
|
|
|
|
Organic Revenue
Growth/(Decline)
|
7.2 %
|
|
(0.4) %
|
Acquisitions
|
19.4 %
|
|
14.7 %
|
Translational FX
(a)
|
0.1 %
|
|
0.8 %
|
Total
|
26.7 %
|
|
15.1 %
|
|
|
(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 the Company's expectations regarding
(i) its future operating and financial performance, including its
reiterated guidance with respect to Adjusted EPS and Adjusted EPS
growth for 2022 and long-term growth; (ii) its ability to
successfully rebuild its margins through additional price increases
in the fourth quarter of 2022; (iii) its ability to successfully
capitalize on opportunities and accelerate sustainable growth for
its shareholders.
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 effectively mitigate
factors that negatively impact its supply of raw materials,
including the conflict in Ukraine;
(ii) the Company's ability to successfully mitigate inflationary
changes in the market; (iii) the Company's ability to successfully
identify suitable acquisition targets and adequately evaluate the
potential performance of such acquisition targets; (iv) 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;
(v) the Company's ability to accurately predict the performance of
its Green Cuisine brand and the Findus Switzerland and Fortenova's
frozen food businesses' and their impact on the Company's growth;
(vi) the Company's ability to effectively compete in its markets,
including the ability of Green Cuisine to effectively compete in
Continental Europe; (vii) 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; (viii) the effects of reputational damage from unsafe or
poor quality food products; (ix) the risk that securities markets
will react negatively to actions by the Company; (x) the adequacy
of the Company's cash resources to achieve its anticipated growth
agenda; (xi) increases in operating costs, including labor costs,
and the Company's ability to manage its cost structure; (xii)
fluctuations in the availability of food ingredients and packaging
materials that the Company uses in its products; (xiii) the
Company's ability to protect its brand names and trademarks; (xiv)
new regulations governing the import and export of goods between
the UK and the European Union as a result of 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; (xv) loss of the Company's financial
arrangements with respect to receivables factoring; (xvi) the loss
of any of the Company's major customers or a decrease in demand for
its products; (xvii) economic conditions that may affect the
Company's future performance including exchange rate fluctuations;
(xviii) the Company's ability to successfully interpret and respond
to key industry trends and to realize the expected benefits of its
responsive actions; (xix) the Company's failure to comply with, and
liabilities related to, environmental, health and safety laws and
regulations; (xx) changes in applicable laws or regulations; and
(xxi) 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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SOURCE Nomad Foods Limited