Nomad Foods Limited reported its financial results for the three and nine-month periods ended September 30, 2020, reflecting overall solid performance.
“Consumer demand remained elevated during the third quarter, and our performance continues to be led by our branded retail business. Frozen food is one of the fastest-growing categories in Europe which is a testament to the resilience of the category even as offices, schools, and restaurants gradually reopen. As the duration of this pandemic extends into its eight-month, consumers are recognizing the benefits of our portfolio, forming new habits and repurchasing with greater frequency. We remain agile and prepared for the possibility of another demand spike as the number of new COVID-19 cases rises across Europe and local governments introduce new restrictions. While navigating the COVID-19 pandemic is a top near-term priority, we are equally focused on ensuring sustained growth beyond 2020. We look forward to outlining these initiatives at our Investor Day to be held virtually next week,” said Stéfan Descheemaeker, Nomad Foods’ CEO.
Third-quarter of 2020 results compared to the third quarter of 2019 show an increase in revenue of 6,7% to EUR576m, while gross profit increased by 10% to EUR 175m. Organic revenue growth of 5.4% was comprised of 4.2% growth in volume/mix and a 1.2% increase in price. The adjusted operating expenses increased 4% to EUR83 million as growth in Indirect expenses was partially offset by a modest decline in Advertising & Promotion. Adjusted EBITDA increased 13% to EUR109m and Adjusted Profit after tax increased 20% to EUR59m due to the aforementioned factors.
First nine months of 2020 results compared to 2019 same-period figures show an even better performance, with a generated revenue of EUR1.858m. Gross profit increased 9% to EUR555 million, while gross margin declined to 29.9% as pricing, promotional efficiencies and mix were more than offset by the cost of goods inflation.