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Earnings Highlights and Review: Nomad's Organic Revenue Grew 1.1%; EPS Climbed 13%

Research Desk Line-up: Seneca Foods Post Earnings Coverage

LONDON, UK / ACCESSWIRE / June 20, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Nomad Foods Ltd (NYSE: NOMD), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=NOMD, following the Company's release of its first quarter fiscal 2017 financial results on May 25, 2017. The frozen foods Company raised its adjusted EBITDA guidance for the year. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:

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Get more of our free earnings reports coverage from other constituents of the Processed & Packaged Goods industry. Pro-TD has currently selected Seneca Foods Corporation (NASDAQ: SENEA) for due-diligence and potential coverage as the Company announced on May 25, 2017, its financial results for Q4 2017 and year which ended on March 31, 2017. Register for a free membership today, and be among the early birds that get access to our report on Seneca Foods when we publish it.

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on NOMD; also brushing on SENEA. With the links below you can directly download the report of your stock of interest free of charge at:

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Earnings Reviewed

For the three months ended March 31, 2017, Nomad's revenue decreased 2.9% to €531 million compared to revenue of €547.1 million in Q1 2017. Post adjusting for foreign exchange currency translation and an extra trading day in the year-ago period, the Company's organic revenue growth was 1.1%, driven by 3.0% growth in volume/mix offset by 1.9% decline in price.

During Q1 2017, Nomad's gross profit decreased 7% to €156 million compared to €167.5 million in Q1 2016. The Company's gross margin contracted 120 basis points to 29.4% as higher volume, positive mix, and UK price increases were more than offset by elevated planned promotions in the UK and the anniversary of unusually low promotional levels in other markets. The Company stated that foreign exchange currency translation adversely impacted gross margin by 20 basis points.

For Q1 2017, Nomad's adjusted operating expense remained unchanged at €80 million, while the Company's advertising and promotion expense increased 3% to €30 million reflecting more seasonally balanced spending in the reported quarter versus 2016 while indirect expense decreased 2% to €50 million.

Nomad's adjusted EBITDA decreased 11% to €88.8 million compared to adjusted EBITDA of €99.8 million in Q1 2016. The Company's depreciation and amortization of €12 million were flat on a y-o-y basis.

Nomad reported Q1 2017 net profit of €48.0 million, or €0.26 per share, compared to net profit of €42.2 million, or €0.23 per diluted share, in Q1 2016. The Company's adjusted EPS of €0.25 declined 13.8% compared to adjusted EPS of €0.29 in the prior year's same quarter.

Nomad Foods' Co-Chairman and Founder commented:

"Following a successful and encouraging Q1, we are now even more optimistic about our prospects for the balance of the year. We look forward to capitalizing on our forward momentum with respect to both continued organic growth, as well as strategic opportunities. Our business is strong, and we believe Stéfan and our entire team are delivering great results and are well-positioned to build long-term value for all of our stakeholders."

Balance Sheet

Nomad's adjusted CapEx, which excludes non-recurring Findus integration cost of €1.2 million increased by €1 million on a y-o-y basis. The Company's restructuring and non-recurring cash flows of €23.4 million were largely driven by severance cost associated with the closure of production facilities in Sweden and further integration of the Findus Group.

Nomad's operating cash flow conversion for Q1 2017 was 95.2% significantly higher compared to the previous year. The Company stated that adjusted free cash flow delivery of €69 million is in-line with its 2017 target which Nomad now expects to be at €200 million.

Guidance

Nomad raised its 2017 adjusted EBITDA outlook to a range of approximately €315 million to €325 million versus the prior expectation of approximately €315 million, which now assumes organic revenue growth at a low-single digit percentage rate.

CFO Departure

On June 07, 2017, Nomad announced that CFO, Paul Kenyon, has resigned to accept another opportunity outside of the food industry. Mr. Kenyon has been CFO with the Company for five years, joining in 2012 as CFO of Iglo Group and then CFO of Nomad Foods since 2015. He will continue to serve in his current role until August 2017 and will remain on the Board as a non-Executive Director following his departure. The Company has commenced an external search for his replacement.

Stock Performance

On Monday, June 19, 2017, the stock closed the trading session at $14.38, rising slightly by 0.70% from its previous closing price of $14.28. A total volume of 798.59 thousand shares have exchanged hands. Nomad Foods' stock price skyrocketed 26.92% in the last three months, 55.80% in the past six months, and 64.72% in the previous twelve months. Furthermore, since the start of the year, shares of the Company have soared 50.26%. The stock is trading at a PE ratio of 56.17. At Monday's closing price, the stock's net capitalization stands at $2.56 billion.

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SOURCE: Pro-Trader Daily