Nomad Foods (NOMD) Reaffirms Q3 & Full-Year 2023 Guidance
Nomad Foods Limited NOMD recently reaffirmed its third-quarter and full-year 2023 guidance that it provided with its last earnings.
For third-quarter 2023, the company continues to expect revenues in the range of €750-€755 million. Adjusted EBITDA is estimated to be in the band of €127-€133 million. For the quarter, the company’s adjusted earnings per share (“EPS”) are projected to be between €0.37 and €0.39, in line with its prior estimate.
For 2023, the company continues to expect organic revenue growth in the mid-single-digit range. Adjusted free cash flow is still estimated to be about €250 million. For the year, adjusted EPS is projected in the band of €1.54 to €1.57, in line with its previous estimate.
Nomad Foods anticipates witnessing a sequential improvement in its volume and market share performance in the second half of 2023 and full-year 2024, driven by the A&P investment program.
What’s More?
NOMD delivered solid second-quarter 2023 results last month, wherein the top line increased from the year-ago quarter. Revenues improved 6.9% year over year to $745 million. Organic revenues increased 8.6% on a year-over-year basis. The company has been benefiting from strong sales of frozen food products across end markets.
However, Nomad Foods has been struggling with lower volume, hurting its sales performance. The company’s organic revenues, which increased in the second quarter, were largely offset by volume and mixed declines.
The company continues to battle cost inflation, supply-chain bottlenecks and operational complexities. In the second quarter, its adjusted operating expenses increased 10% year over year. Adjusted EBITDA margin of 17.8% contracted from 18.2% in the year-ago quarter. Despite solid growth in the top line, NOMD’s adjusted earnings per share remained unchanged at €0.40 in the quarter.
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The current Zacks Rank #4 (Sell) player has a market capitalization of $2.9 billion. In the past six months, the stock has lost 3.8% compared with the industry’s decline of 2.7%.
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