Nomad Foods (NOMD) investor relations material

Business Overview and Market Position

• Holds a leading position in the European frozen food market, with strong brands like Birds Eye, Igloo, and FINDUS, and maintains leading market share and brand equity in 12-13 out of 15 core markets, with a 46% weighted average value share in top 25 segments.

• Portfolio is focused on nutritious, protein-rich, and vegetable-based frozen foods, accounting for two-thirds of revenue, with 90% of products classified as non-HFSS.

• Category fundamentals remain strong, with frozen food seen as convenient, value for money, and increasingly healthy, and secular trends such as convenience, value, and sustainability driving consumer preference.

• Per capita frozen food consumption in Europe remains below the US, indicating further growth potential in underpenetrated markets.

• Innovation is accelerating, with new products expected to approach 5% of revenue in 2025 and recent launches including expanded poultry and vegetarian options.

Financial Performance and Guidance

• Revenue has grown from €1.9 billion in 2016 to €3.1 billion in 2025E, with a 5% CAGR; Adjusted EBITDA and EPS have also shown steady growth.

• 2025 guidance anticipates organic revenue growth of 0% to -2% YoY, Adjusted EBITDA decline of -3% to -7%, and Adjusted EPS of €1.64–€1.76.

• Free cash flow conversion is expected to remain above 90% in 2025, with medium-term targets of 1–3% Adjusted EBITDA CAGR and 15% higher free cash flow versus 2023–2025.

• Market share and volume are recovering in H2 2024, with category growth resuming after weather-related declines.

• Took significant pricing actions in 2022–2023 to protect margins, impacting market share but enabling brand investment.

Operational Efficiency and Productivity

• €200 million productivity program planned for 2026–2028, targeting procurement, conversion, logistics, and overhead savings, with procurement transformation aiming for €95–100 million in savings.

• Logistics optimization targets €15–20 million in savings, and conversion cost savings of €60–70 million are expected.

• Overhead costs to be reduced by €20–35 million, with a zero-based budgeting approach.

• Exceptional cash expenditures are expected to halve in 2026–2028 compared to 2023–2025, driven by a slower, simpler ERP transformation.

• Savings to be reinvested in product quality, innovation, and brand support, with a focus on efficiency and ROI.