Nomad Foods(NOMD)2025-03-03 18:26Financial Data and Key Metrics Changes - For Q4 2024, reported net revenues increased by 4.3% to EUR 793 million, with organic growth at 3.1%, marking the 10th consecutive quarter of organic growth [35][38] - Gross margin rose to 29.6%, nearly reaching the pre-COVID peak of 30% achieved in 2019, with a 9% increase in gross profit [39][40] - Adjusted EBITDA increased by 17.6%, while adjusted profit rose by 28% year-on-year, and adjusted EPS increased by 31% to EUR 0.42 [37][38] Business Line Data and Key Metrics Changes - The company achieved market share growth in key categories, with organic sales for growth platforms rising by 16% in 2024 and 40% in Q4 [22] - Retail sales for prepared poultry in Italy rose 98% year-on-year, with market share growing from 8% in Q4 2023 to 50% in Q4 2024 [25] - In Germany, retail sales for prepared poultry rose 35% year-on-year, reaching a market share of 2.7% [27] Market Data and Key Metrics Changes - The company reported a 420 basis point increase in market share for potatoes in Belgium, becoming the category leader [28] - In France, market share grew by 550 basis points to 16.1% in the quarter, while in the UK, market share increased by 70 basis points to 8.9% [29] - The overall consumer environment in Western Europe is gradually improving, with private label losing market share [118] Company Strategy and Development Direction - The company is focused on maintaining its core portfolio while exploring potential acquisitions in subcategories where synergies exist [90] - The strategy includes significant investments in advertising, innovation, and renovation to drive sustainable growth [30][31] - The company aims to continue its streak of top and bottom line growth for the 10th consecutive year in 2025 [121] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving another year of organic growth in 2025, despite a challenging operating environment [10][15] - The company anticipates a modest decline in organic sales in Q1 2025 due to timing dynamics, but expects the underlying trend of improvement to hold throughout the year [49][51] - Management noted that inflation is easing, and while it remains higher than pre-crisis levels, it is not as severe as in 2022 [117] Other Important Information - The company returned EUR 208 million to shareholders in 2024, a more than 20% increase from EUR 171 million in 2023 [43][44] - The Board of Directors approved a 13% increase in the first quarter 2025 cash dividend to $0.07 per share [48] Q&A Session Summary Question: What is the basis for the 1% to 3% organic sales growth forecast for 2025? - The forecast is based on low inflation and expected category growth, with market share performance contributing to the growth [54] Question: How do you expect the price/mix piece to evolve in Q1? - There is an expectation of pressure on price, but volume remains important for driving efficiencies [62] Question: How much of the innovation will focus on existing must-win battles versus new growth platforms? - The majority of innovation will focus on must-win battles, which represent around 50% of the business [66] Question: What is the status of the enterprise-wide transformation program? - The company is taking a slower approach to implementation, focusing on efficiency gains and simplification [99] Question: How do you view the impact of potential tariffs from the US? - The company does not foresee a major impact from tariffs, as it does not export to the US and has diversified sourcing strategies [110][112] Question: What is the current consumer environment in Western Europe? - The environment is gradually improving, with private label losing market share, indicating a return to branded products [118]