Nomad Foods (NOMD) Q2 2026 [Q&A] earnings summary

Executive summary

• Retail disruptions in key markets have been resolved, positioning for improved performance in the second half of the year, though organic revenue declined 2.9% year-over-year in Q2 2026 due to these disruptions.

• Adjusted gross margin improved by 110 basis points to 28.9% in Q2 2026, driven by pricing actions and productivity gains.

• Adjusted EBITDA declined 4.3% year-over-year to €124 million, impacted by a 7% headwind from incentive compensation.

• Leadership changes and a comprehensive value creation plan are underway, focusing on innovation, marketing, sales, and productivity.

• The frozen food category remains robust, with strong value and volume growth despite external uncertainties.

Financial highlights

• Q2 2026 revenue was €724 million, down 3.1% year-over-year, with organic revenue down 2.9%.

• Adjusted gross margin rose to 28.9% from 27.8% a year ago, with gross margin growth primarily driven by pricing actions.

• Adjusted EBITDA was €124 million, a 4.3% decrease year-over-year.

• Adjusted EPS for Q2 2026 was €0.39, down from €0.40 in Q2 2025.

• Adjusted profit for the period was €55 million, down 9% year-over-year.

Outlook and guidance

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

• Adjusted EPS guidance revised to €1.38–€1.53 (previously €1.47–€1.62) due to higher interest expense from refinancing.

• Adjusted free cash flow conversion expected to remain above 90%.

• Expectation for better sales and market share performance in Q3 and Q4, though full market share neutrality may take longer.

• Confident in ability to take cost-justified price increases in Q4 and into next year, especially in fish categories.