Nomad Foods (NOMD) 2025 dbAccess Global Consumer Conference summary

Strategic Positioning and Category Outlook

• Maintains a strong category advantage in frozen food, focusing on health, taste, value, and sustainability, with Europe as a favorable market and secular consumer trends like air fryer adoption supporting growth.

• Portfolio spans key frozen categories—fish, vegetables, chicken, pizza, potatoes, ice cream—with two-thirds of revenue from protein and vegetables, and ongoing innovation in poultry, potatoes, meals, and fish.

• Emphasizes market share leadership in must-win battles, with a 46% average share in 25 key segments and brand equity leadership in most markets.

• Sees long-term growth runway by comparing per capita consumption with the U.S. and expects further expansion in core European markets.

• Celebrates its 10th anniversary in 2025, building on nearly a century of brand heritage and a track record of accretive M&A and portfolio expansion.

Innovation, Renovation, and Brand Investment

• Invests heavily in innovation and renovation, targeting 6.5% of sales from innovation and 15-17% from combined innovation and renovation, with a goal of near 5% innovation as a percent of revenue in 2025.

• Uses a 'lift and launch' approach to scale successful products across countries, reducing risk and accelerating growth.

• Aims to increase product superiority in blind and branded tests from 36% in 2023 to 80% by 2027, with new launches like improved pizza and fish fingers.

• Focuses A&P spending on must-win battles and growth platforms, with increased year-over-year investment and a shift from TV to diversified media.

• Sees private label as a strong competitor, emphasizing the need for superior branded products and continuous product improvement.

Financial Performance and Guidance

• Revenues grew from €1.9 billion to €3.1 billion since 2016 (6% CAGR), with adjusted EBITDA rising from €325 million to €565 million (7% CAGR), and adjusted EPS increasing from €0.84 to €1.78 (10% CAGR).

• Achieved consistent annual EPS growth over nine years, despite industry challenges and macro crises.

• The European frozen food category outperformed total food with a 10-year CAGR of 3.2% versus 2.5%, and market share has stabilized in recent periods.

• 2024/2025 guidance: organic revenue and EBITDA growth of 0-2%, adjusted EPS growth of 2-6% (€1.82-1.89), and free cash flow conversion above 90%.

• Delivered €2.1 billion in adjusted free cash flow from 2017-2024, with recent years at €275-300 million annually and growth targets implying €850 million over the next three years.