Nomad Foods Limited reported financial results for the three and twelve-month periods ended December 31, 2021, with key operating highlights and financial performance including reported revenue increased 7.0% to EUR704m, and a reported profit for the period of EUR29m.
Fourth Quarter of 2021 results compared to the Fourth Quarter of 2020 show that the organic revenue decline of 4.5% was driven by a 3.1% decline in volume/mix and a 1.4% decline in price. Adjusted gross profit decreased 10% to EUR186m. Adjusted Gross margin declined 500 basis points to 26.5% due to cost of goods inflation and promotions. The inclusion of Findus Switzerland and Fortenova Frozen, whose margins are seasonally low during the fourth quarter, diluted gross margins by 150 basis points. Fortenova Frozen’s gross margins are expected to be slightly accretive on a full year basis in 2022. Meanwhile, adjusted operating expenses decreased 9% to EUR94m, reflecting a more normalized level of Advertising and promotion spend relative to the prior year where the company invested EUR10m behind new consumer retention and brand building activities. Indirect expenses increased in-line with revenues.
“We are pleased to report strong operational and financial performance in 2021 and a fifth consecutive year of revenue, Adjusted EBITDA and Adjusted EPS growth. Following an exceptional year of growth in 2020, we focused this year on consolidating our consumer gains through product innovation and impactful promotion, while ensuring our supply chain was fit for purpose as we drove investments in capacity expansion and efficiency programs. Despite a difficult operating environment, we delivered a 4% increase in Adjusted EBITDA to EUR487m and a 15% increase in Adjusted EPS to EUR1.55, reflecting the resilience of our operating model, the strength of our brands and our focus on maximizing value for our shareholders,” commented Stéfan Descheemaeker, Nomad Foods’ chief executive officer.