Nomad Foods Delivers Strong Q4 Performance, Eyes Continued Growth and Sustainability
Nomad Foods, a leading manufacturer of frozen food products, has reported a strong finish to its fourth quarter with impressive volume-driven sales growth and robust margin expansion.
According to CEO Stefan Descheemaeker, the company's 9th consecutive year of sales and adjusted EBITDA growth is a testament to its solid performance. While M&A activities have contributed to this growth, organic growth has also been a consistent contributor over time. In fact, Nomad Foods has achieved an impressive 3% CAGR in organic sales since 2016, with growth in every year except 2021 when the company lapped the COVID demand spike.
Descheemaeker reflected on the company's journey, noting that it has now entered its 10th year as a public company and is well-positioned to continue delivering sustainable growth. He highlighted the company's focus on building a portfolio of iconic brands with superior equity and strong additions, while remaining committed to creating a food business that spans both developed and developing markets across Europe.
Nomad Foods has assembled a diverse portfolio of high-quality, great-tasting, convenient food products that cater to consumers' evolving tastes. Approximately 2/3 of its portfolio is comprised of vegetable, fish, and poultry-based products, with 93% of its U.K. and Western Europe revenue generated from products deemed healthy meals by the U.K. government.
The company's commitment to sustainability has earned it a place in the annual Dow Jones Sustainability Europe Index for the fourth consecutive year, while receiving a maximum score of 100 in health and nutrition for the sixth consecutive year. Nomad Foods' clear portfolio advantage, combined with its people advantage, positions it well for the trends reshaping the industry.
Descheemaeker highlighted the company's efforts to energize the organization, improve efficiency, and idea sharing through strategic initiatives and investments. The supply chain organization has delivered meaningful productivity in recent years, while strategic focus on driving growth and positive investment in areas such as revenue growth management have allowed the company to increase its product development, advertising, and merchandising capabilities.
Looking ahead, Nomad Foods is poised for continued growth and sustainability. Descheemaeker expressed confidence in the company's ability to deliver another year of growth in 2025, while generating significant shareholder value. With a strong foundation and clear strategy, Nomad Foods is well-positioned to navigate the evolving food industry landscape.
