Birds Eye manufacturer Nomad Foods saw its organic revenue decline by 3.2%, which was comprised of a 5.7% decline in volume/mix, according to the company’s quarterly financial results.

Nomad Foods is one of Europe biggest frozen food companies, with a portfolio of brands including Birds Eye, Findus, iglo, Ledo and Frikom. The company is headquartered in the United Kingdom.

Its financial results for the three and six month periods ended 30th June 2022. Key operating highlights from the report, when compared to that of the second quarter 2021, include:

• Reported revenue increased 17% to €697 million
• Organic revenue decline of 3.2%
• Reported Profit for the period of €75 million
• Adjusted EBITDA increased 2.9% to €127 million
• Adjusted EPS remained unchanged at €0.40

Nomad also reported that adjusted gross profits had increased 7.2% to €197 million, whilst margins decreased 260 basis points to 28.2%. According to the report, this was driven by higher raw material costs offset with higher pricing, and the inclusion of the Fortenova’s frozen food business acquisition whose gross margins are above that of the base business.

A cautious outlook

Commenting on the results, Nomad Foods’ CEO Stéfan Descheemaeker said that he was pleased with its second quarter performance. He explained: “We are adjusting our business well to inflationary pressures and believe that supply chains are normalising.

“However, in light of the continuing war in Ukraine, its collateral risks and European consumer sentiment, we are taking a more conservative posture to full year earnings.”

Descheemaeker said that the company is revising its Adjusted EPS expectation for the year to a range of €1.65 to €1.71 for 2022. He said: “Despite our cautious outlook for the year, we believe our business is stronger today than at any other time in our history and we are confident we remain on track to deliver our €2.30 Adjusted EPS target for 2025.”