Nomad Foods Limited has reported its financial results for the three and six month periods ended June 30, 2018, which found that the group’s revenues have increased by 6.6% to €488 million in the second quarter of the year.
Organic revenue growth for the period was 1.3%, which is comprised of a 1.5% increase in price offset by a 0.2% drop in volume.
Revenue growth was benefited by 6.4% points due to the acquisition of Goodfella’s, however, growth was slowed by 1.1% due to currency translation.
“We reported solid second-quarter results, highlighted by 1.3% organic revenue growth, 90 basis points of adjusted EBITDA margin expansion and 22% adjusted EPS growth. Performance was particularly encouraging given this year's earlier Easter timing and the highly publicised summer heat waves throughout Europe,” said Stéfan Descheemaeker, Nomad Foods’ CEO.
“Recent acquisitions are proving complementary. Goodfella's is performing well in our first few months of ownership and Aunt Bessie's, which closed on July 2nd, is expected to be immediately accretive. We are pleased with our year-to-date progress and are on pace to deliver another year of top and bottom line growth."
For the first six months of the year, revenues at Nomad Foods increased by 3.8% to €1 billion.
Organic revenue growth of 2.1% was comprised of a 1.4% price increase and 0.7% growth in volume. The Goodfella’s acquisition brought a boost of 0.3 percentage points but was offset by 1.3% as a result of foreign exchange translation.
The group’s profit after tax for the first half of the year increased by 27% to €111 million. The group said that this reflects its interest rate savings and lower depreciation and amortisation.
Nomad said that it is raising its 2018 guidance to include the expected contribution from Aunt Bessie’s, which was acquired at the start of July.
The group now expects adjusted EBITDA of approximately €365 to €370 million. ‘Full-year guidance continues to assume organic revenue growth at a low-single-digit percentage range,’ the statement read.
Noam Gottesman, Nomad Foods’ co-chairman and founder, added, “Second quarter results demonstrate the strength of our business model and the execution ability of our management team.
“We remain uniquely positioned to capitalise on the favourable macro trends occurring within the frozen food space and are excited by the potential of our portfolio in both the near and long-term."
© 2018 Checkout – your source for the latest Irish retail news. Article by Aidan O’Sullivan. Click subscribe to sign up for the Checkout print edition.