Nomad Foods (NOMD) Q1 2026 (Q&A) earnings summary

Executive summary

• Q1 2026 saw category growth of 3.8%, exceeding expectations, but organic revenue declined 5.3% year-over-year due to inventory and order pattern realignment, with retail sell-out remaining flat.

• Adjusted Free Cash Flow conversion improved, supporting €24 million in share repurchases and €21 million in dividend payments, with a €283 million cash balance at quarter-end.

• The company is shifting from a narrow health-focused portfolio to a more flexible, commercially driven approach, with further details to be shared at Analyst Day in the fall.

• Management highlighted progress in organizational restructuring, talent acquisition, and elimination of inefficient sales incentives.

• Full-year Organic Revenue and Adjusted EBITDA guidance reiterated, with a modest increase in Adjusted EPS outlook.

Financial highlights

• Revenue for Q1 2026 was €715 million, down 5.9% year-over-year, with gross profit declining 13% to €184 million and gross margin down 210 basis points to 25.7%.

• Adjusted EBITDA fell 23% to €93 million, with margin dropping to 12.9%.

• Adjusted profit for the period was €32 million, a 40% decrease year-over-year.

• Adjusted EPS was €0.23, down 34% from the prior year.

• Adjusted operating expenses remained stable at €115 million.

Outlook and guidance

• Full-year 2026 organic revenue expected to decline 2%-5%; Adjusted EBITDA to decline 5%-10%.

• Adjusted EPS guidance raised to €1.47–€1.62 (USD $1.72–$1.90), a 4–13% decline year-over-year.

• Adjusted Free Cash Flow conversion expected to remain above 90%.

• Profitability is expected to step up in H2, especially Q3, due to improved margin mix and better out-of-home ice cream business in the Adriatics.

• Incremental inflation is expected to affect the P&L in Q4 2026 and into 2027 if current conditions persist.