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- **Goals Intact**: EUR 200M efficiency target and EBITDA growth goals reaffirmed, supported by Board.
- **Surgical Pricing**: 2026 inflation at single-digit; cost savings to offset inflation, with Q1 '26 pricing.
- **Q4 Confidence**: Despite low-end guidance (-1.5% to -2%), improving trends and product initiatives drive optimism.
- **Quality Over Price**: Investing in superior products (e.g., fish fingers) to counter private label competition.
- **Aggressive Buybacks**: EUR 150M from refinancing to be used for share repurchases at 6.5x PE.

**【CEO's Commitment to Medium-Term Goals】**
- Reaffirmed EUR 200 million multiyear efficiency target and low-single-digit EBITDA growth goals, endorsed by the Board.
- New CEO, Dominic, focuses on growth, with Board support for existing metrics.

**【CFO on Pricing Strategy & Inflation】**
- 2026 inflation expected at single-digit levels; pricing to be implemented in Q1 '26.
- Surgical approach to pricing, using cost savings (e.g., EUR 200M program) to offset inflation.
- Q4 '25 guidance at low end (-1.5% to -2% growth), but improving sell-out trends (Q3: +0.7% volume).

**【Q4 Guidance & Risks】**
- Confidence in Q4 guidance due to product renovations (e.g., UK pizza, fish fingers) and distribution gains.
- Risks include competitor pricing reactions and weather impacts on frozen food sales.

**【Private Label Competition】**
- Focus on non-price factors: product innovation (e.g., superior fish fingers), packaging quality, and A&P spend.
- UK market share stabilization efforts include new campaigns and product quality improvements.

**【Cost Savings Breakdown】**
- Supply chain savings (~EUR 170M): supplier consolidation, factory right-sizing, and in-sourcing.
- Overhead savings (~EUR 30M): functional restructuring and indirect procurement efficiencies.

**【Capital Allocation】**
- Aggressive share buybacks at current 6.5x PE, using EUR 150M from recent refinancing.
- Dividend and buyback prioritization reflects confidence in intrinsic value.


Nomad Foods Limited (NOMD) Q3 2025 Earnings Call Transcript

- **Revised Guidance**: 2025 organic sales now expected to decline 0%-2% YoY (vs. prior 0%-1% range) due to extreme weather risks
- **Key Challenges**: 
  - Q2 market volume down 1% vs. 1.5%-2% growth expectations
  - 4.5% inflation vs. initial 2.5% estimate
- **Positive Trends**: 
  - 2025 innovation contribution near-doubles
  - SG&A savings of ~EUR 20m YoY
  - Protein categories (chicken +15%, fish +10%) outperforming frozen core
- **Capital Allocation**: 
  - EUR 20m+ buybacks in H1
  - Dividend payments maintained
  - M&A on hold due to market conditions

**【CEO Summary Section】**
- CEO Stefan Descheemaeker acknowledged past guidance misses due to self-inflicted issues (ERP implementation delays, excess inventory) and external factors (unprecedented Western European heatwave in Q2). 
- Q2 market volume declined 1% vs. expected 1.5%-2% growth, with June-July sellout down 5.5% YoY. Despite challenges, Nomad gained market share in volume.
- 2025 full-year guidance revised to 0%-2% organic sales decline (vs. prior 0%-1% range) to account for potential continued heatwaves. 
- Long-term strategy includes expanding high-margin protein categories (chicken, natural fish) and seasonal products (e.g., ice cream in Adriatic markets).

**【CFO Financial Commentary】**
- CFO Ruben Baldew highlighted:
  - Q2 inflation at 4.5% (vs. 2.5% initial estimate), driven by extreme weather impacting crop yields
  - SG&A savings of ~EUR 20m YoY through overhead cost control and bonus deferrals
  - 2025 capital allocation priorities: share buybacks (EUR 20m+ in H1) and dividend payments, with M&A on hold due to market conditions
  - 2026 outlook includes pricing actions to offset inflation, but cautious on bonus releases creating headwinds

**【Q&A Key Highlights】**
- **Innovation Pipeline**: 
  - 2024: 10% of sales from innovation/renovation
  - 2025: Targeting near-doubling of innovation contribution
  - New product launches include protein bowls (UK, NL, BE), snacking categories (Italy), and frozen foodservice solutions
- **Supply Chain Optimization**: 
  - Closing smaller Nordic factory to streamline network
  - Procurement improvements and facility rationalization programs underway
- **Weather Risk Management**: 
  - Developing summer-specific assortments (e.g., natural fish, marinated chicken)
  - Expanding ice cream business in Adriatic markets
- **Competitive Positioning**: 
  - Renovation programs to maintain >100bps margin vs. private label
  - Protein categories (chicken, fish) outperforming traditional frozen categories

Nomad Foods Limited (NOMD) Q2 2025 Earnings Call Transcript

- **Q1 2025 Highlights**: 3.6% organic sales decline but 90bp gross margin expansion; EUR 74M shareholder returns (+152% YoY). 
- **2025 Outlook**: 0-2% organic growth (down from 1-3%), 0-2% EBITDA growth (down from 2-4%).
- **Key Risks**: Retail destocking (12/15 markets), protein cost inflation, U.K. category comps.
- **Growth Drivers**: Fish innovation (Fish Bar +9% Q1), 36% growth in new platforms, 152% higher shareholder returns.

**【CEO Summary Section】**
- Nomad Foods achieved modest retail sell-through growth in Q1 2025, driven by gross margin expansion and overhead savings. The company repurchased EUR 49 million in shares and paid EUR 25 million in dividends, a 152% increase in shareholder returns compared to Q1 2024.
- Despite facing headwinds such as retail inventory destocking and consumer value-seeking behavior, the CEO emphasized long-term strategy execution, including investments in innovation (e.g., Captain's Discoveries line) andMust Win Battles like fish. Organic sales growth is expected to resume in Q2.

**【CFO Financial Commentary】**
- Q1 2025 reported net revenues decreased 3% to EUR 760 million, with organic sales down 3.6%. Gross margin improved 90 basis points to 27.8% due to supply chain productivity and lapping prior-year inventory headwinds.
- Adjusted EBITDA decreased 1.8% to EUR 120 million, while adjusted EPS fell 5.4% to EUR 0.35. Free cash flow conversion was 24% due to higher working capital, but the company expects full-year conversion above 90%.
- Full-year 2025 guidance revised to 0-2% organic sales growth (vs. prior 1-3%), 0-2% adjusted EBITDA growth (vs. prior 2-4%), and 2-6% EPS growth (vs. prior 4-6%).

**【Q&A Key Takeaways】**
- Retailer destocking impacted 12-13 of 15 markets, with U.K. and Italy showing notable destocking. Q2 2025 growth expected to be volume-driven, with pricing support in H2.
- Input cost pressures from proteins (chicken, red meat) will be offset by pricing, though near-term gross margin pressure is expected.
- Brand investments (A&P, innovation) remain intact, with 36% YoY growth in growth platforms (e.g., frozen chips, prepared meals).

Nomad Foods Limited (NOMD) Q1 2025 Earnings Call Transcript

- **Record Growth Momentum**: 9 straight years of organic sales/EBITDA growth, 2024 organic +1%, EBITDA +5.6%.
- **Share Gains & Innovation**: UK poultry market share +420bps in 2024, 2025 innovation >5% of sales.
- **Profitability Expansion**: 2024 gross margin 29.6%, 2025 targeting 1-3% organic growth, 2-4% EBITDA growth.
- **Shareholder Returns**: 2024 free cash flow conversion 101%, €208M returned to shareholders.

**【CEO Summary Section】**
- Delivered 9 consecutive years of organic sales and EBITDA growth, with 2024 organic sales up 1% and EBITDA growth of 5.6%.
- Expanded market share in key categories (e.g., UK prepared poultry market share +420bps in 2024) through reinvested margin upside into A&P (4% of net sales in 2024, top tier vs peers).
- Innovation pipeline exceeds 5% of sales in 2025, with renewal rate targeting mid-teens (vs high single digits in 2024).
- 2025 outlook: 1-3% organic sales growth, 2-4% EBITDA growth, and 10th consecutive year of top/bottom line growth.

**【CFO Financial Commentary】**
- Q4 2024: €793M net revenue (+4.3% YoY), 9% gross profit growth driven by 160bps productivity gains, 17.6% EBITDA growth to €131M.
- Full year 2024: €3.0B revenue (+1.8% YoY), 29.6% gross margin (vs 28.2% in 2023), 5.6% EBITDA growth to €443M.
- Free cash flow conversion 101% in 2024, returning €208M to shareholders (€0.60 dividend + 4% share buyback).
- 2025 guidance: €1.85-1.89 EPS (€1.94-1.98 USD), 90%+ free cash flow conversion.

**【Q&A Key Themes】**
1. **Market Share & Volume Growth**: 2024 organic sales growth driven by 1.3% volume (vs -0.3% in 2023), with Q4 volume +4.7% YoY. 2025 expects modest Q1 decline due to Easter timing, but 1-3% annual growth.
2. **Gross Margin Sustainability**: 2024 gross margin at 29.6% (vs 28.2% in 2023), with 100bps productivity gains. 2025 expects continued reinvestment in A&P and innovation, offsetting potential inflation.
3. **M&A Strategy**: Focus on core portfolio optimization first, but open to small, strategic add-ons in underpenetrated subcategories. 2016-2024 M&A deployed €1.2B to grow EBITDA/share +97%.
4. **Consumer Trends**: Frozen category resilience in inflationary environment, with private label market share decline (Nomad gaining share in UK, Italy, Germany).

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