Nomad Foods Ltd, the owner of Birds Eye, reported an increase in revenue of 1.5% to €539 million for the first quarter of 2018.
Compared to quarter one of 2017, organic revenue also saw a growth of 2.9%, and reported Gross profit increased 10% to €171 million. Gross margin expanded 240 basis points to 31.8% due to positive mix and improved pricing and promotional efficiency.
Frozen Food Flourishing
Stéfan Descheemaeker, Nomad Foods’ Chief Executive Officer, said, “2018 is off to a strong start highlighted by first quarter organic revenue growth of 2.9% and adjusted EPS growth of 40%.
“These results, which reinforce the sustainability of our growth model, are attributable to the team's focus and execution towards our goals of driving frozen food category growth and increasing our market share. Based on our year-to-date performance and visibility into the balance of the year, we now expect 2018 guidance at the high end of our prior expectations.”
Noam Gottesman, Nomad Foods’ Co-Chairman and Founder, added, “It is a good time to be in the frozen food business. The category is growing across Western Europe and, in many cases, is out-pacing other packaged food categories. Our strong first quarter performance and plans for the remainder of 2018 put us on track to deliver another year of impressive financial results."
Greater Expectations
As a result of the good performance, the company has raised its 2018 guidance and now expects adjusted EBITDA of approximately €355 to €360 million and adjusted EPS of approximately €1.10 to €1.13 per share.
Full year guidance continues to assume organic revenue growth at a low-single-digit percentage range.
The international frozen foods company recently announced the completed acquisition of Green Isle Foods Ltd, the manufacturer and distributor of Goodfella’s Pizza.
© 2018 Checkout – your source for the latest Irish retail news. Article by Aidan O’Sullivan. Click subscribe to sign up for the Checkout print edition.
