Birds Eye parent Nomad Foods has posted a 10.5% year-on-year growth in revenue to €683 million in the first quarter ended 31 March driven by an ‘unprecedented’ demand for frozen food amid the COVID-19 pandemic.
“This change in consumer behaviour, which began in early March, has continued into the second quarter with in-home consumption the most meaningful driver," stated Stéfan Descheemaeker, Nomad Foods’ chief executive officer.
The frozen food giant has raised its 2020 guidance and expects an adjusted earnings before interest, taxes, and amortization (EBITA) of in the region of €450 to €460 million compared to its previous estimate of approximately €440 to €445 million, the group said.
“Our organisation has collectively risen to the challenge by ensuring the continuous supply of our products and brands throughout this crisis while prioritising the health and safety of our employees."
Organic Revenue Increase
The company’s organic revenue increased by 7.7% in the first quarter, comprising 1.4% growth in price and a 6.3% increase in volume/mix.
“Nomad Foods has distinguished itself as a leader in the packaged foods sector with 13 consecutive quarters of organic revenue growth," added Sir Martin E. Franklin, Co-chairman and founder of Nomad Foods.
“Further, as a frozen food pure-play, our company is uniquely positioned to service the extraordinary demand for food at home throughout this crisis.”
Gross profit increased 4% to €199 million in the quarter, while gross margin declined 180 basis points to 29.1% as pricing, promotional efficiencies and mix were more than offset by the cost of goods inflation, the company added.
The company saw a 14% increase in adjusted operating expenses to €97 million, following double-digit growth in advertising and promotion as well as indirect expenses.
Adjusted EBITDA decreased 2% to €120 million, while adjusted profit after tax decreased 5% to €68 million.
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