Nomad Foods has reported a revenue increase of 15% to €618 million, for quarter one 2019, when compared to the first quarter of 2018.
Other key operating highlights and financial performance for the group include an adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) increase of 18% to €122 million, according to its financial results for the three month period ended 31 March, 2019.
“We achieved strong performance during the first quarter and are on pace to deliver another year of revenue and Adjusted EBITDA growth in line with our long-term growth algorithm," Stéfan Descheemaeker, chief executive officer, Nomad Foods’ stated.
Organic revenue for the group showed growth of 0.9% and profit for the period was €22 million, which Descheemaeker said was "achieved despite a later Easter this year, reflecting our ability to consistently execute against our growth model."
Acquisitions & Synergies
Compared to the first quarter of 2018, Adjusted operating expenses increased 9% to €85 million primarily due to inclusion of acquisitions, the Goodfellas pizza owner said.
According to a statement a percentage of revenues, adjusted operating expenses improved from 14.5% to 13.8% reflecting acquisition synergies, expense discipline and phasing.
“First quarter results reinforce the sustainability of the Nomad Foods business model, now in its third consecutive year of organic revenue growth and market share gains," Noam Gottesman, co-chairman and founder, Nomad Foods’, commented.
Goodfella Pizza Acquisition
Last year, on 24 April. The Birds Eye owner confirmed that it had completed its acquisition of Green Isle Foods Ltd - the manufactor and distributer of Goodfella's Pizza from a subsidiary of Boparan Holdings Ltd.
The packaged foods company said at the time that the acquisition also included the San Marco brand and two frozen pizza manufacturing facilities.
Looking Ahead
Looking ahead, the company said that it is reiterating 2019 guidance of approximately €420 to €430 million adjusted EBITDA.
Adjusted EPS is now expected to be in the range of €1.18 to €1.22 per share, reflecting a higher share count as a result of the March 2019 equity offering.
Full year guidance continues to assume organic revenue growth at a low-single digit percentage range.
"We ended the quarter with a sizable cash position due to strong free cash generation and a successful equity offering completed in late March," Gottesman added.
"The combination of solid operating momentum and a well-capitalized balance sheet puts us in a position of strength as we pursue our organic and acquisitive growth ambitions."
© 2019 Checkout – your source for the latest Irish retail news. Article by Donna Ahern. Click sign-up to subscribe to Checkout.
