Nomad Foods Limited reported financial results for the three- and six-month periods ended June 30, 2020. When compared to the second quarter of 2019, revenue increased 11.4% to EUR599m. Organic revenue growth of 12.3% was comprised of 9.9% growth in volume/mix and 2.4% increase in price. Meanwhile, gross profit increased 13% to EUR181m. Adjusted operating expenses increased 1% to EUR79m as growth in Indirect expenses was offset by a double-digit decline in Advertising & Promotion. When comparing the first six months of the year to H1 2019, the increase in revenue stood at 10.9% to EUR1.28bn. Organic revenue growth of 9.8% was comprised of 7.9% growth in volume/mix and 1.9% increase in price, while gross profit increased 8% to EUR380m.
“We experienced continued robust demand throughout the second quarter, even as restrictions were relaxed across Europe beginning in early May. Frozen food has proven to be one of the most durable consumer categories throughout the COVID-19 pandemic, a testament to its role in offering families quick and nutritious meal solutions at home. These are values which we believe will transcend beyond this acute period and appeal to a broader set of consumers in a post-COVID-19 world,” Stéfan Descheemaeker, Nomad Foods’ CEO said.
2020 Adjusted EBITDA is now expected to be in excess of EUR460m. The Company is raising 2020 guidance, which now includes approximately EUR10m of incremental strategic investments to fuel brand building activity, drive targeted retention of new consumers, and further accelerate the growth of Green Cuisine. Full year guidance now assumes organic revenue growth at a high-single digit percentage range versus the prior expectation of mid-single digit organic revenue growth.