Nomad Foods reported increased revenue and adjusted EBITDA in Q2 2024, as well as for the first half of the year.
Nomad reported its revenue in Q2 2024 increased to EUR 753 million (USD 826 million), up 1.1 percent compared to the same period of 2023. That increase was helped by 0.5 percent organic growth that the company attributed to a 1.6 percent increase in volume in the quarter compared to the same quarter of 2023.
Gross profit also increased in Q2 2024 by 10.8 percent to EUR 233 million (USD 255 million), and the gross margin increased by 270 basis points to 30.9 percent, which Nomad attributed to a positive product mix and its core profitable products. The company’s adjusted EBITDA also increased in the quarter by 5.3 percent to EUR 139 million (USD 152 million).
“This year is proving to be pivotal for our business as we have shifted from protecting profitability during a once-in-a generation inflation shock to driving our volume and mix-driven growth,” Nomad Foods Co-Chair and Founder Noam Gottesman said. “We are benefiting from an improving European consumer backdrop and strong category fundamentals which, combined with prudent investments and execution from the team, sets us up for continuing success.”
The Q2 results partially offset the company’s Q1 2024 results, which saw earnings, profit, and volume declines. Nomad Foods CEO Stéfan Descheemaeker said the better results reflect growing momentum behind the business.
“Volume inflected to growth behind accelerating gains in our must-win-battles and the successful build-out of our growth platforms. Growth from these high margin products combined with our productivity initiatives to drive healthy gross margin expansion which provided the funding to meaningfully increase our A&P spend,” Descheemaeker said. “Our investments are bearing fruit for both us and our retail partners; we see accelerating momentum ahead as our investment posture remains robust, our innovation efforts build, and the distribution expansion behind our growth platforms scales."
For the first half of the year, the company posted a similar revenue increase of 1.1 percent compared to the same period of 2023, reaching EUR 1.53 billion (USD 1.67 million). The company had organic revenue growth of 0.4 percent, which was driven by a favorable price mix, the company said. Volume gains in Q2 2024 offset losses in Q1 2024 slightly, resulting in a moderate decline in volume of 0.5 percent.
Gross profit increased in the half by 2.2 percent, reaching EUR 444 million (USD 487 million). Adjusted EBITDA, however, decreased by 11 percent to EUR 132 million (USD 144 million).
The positive trajectory of Q2 2024 has the company predicting that the second half will continue the trend, leaving the company with an expected organic revenue growth of between 3 percent and 4 percent and EBITDA growth of between 4 percent and 6 percent, Descheemaeker said.
