Birds Eye owner Nomad Foods has forecast continued sales growth in 2025 as it looks to recover momentum after a botched software implementation at the end of last year.
In an update on its in-market performance, Nomad Foods said it expected organic revenue growth of 1% to 3% and adjusted EBITDA growth of 2% to 4% for the full year of 2025.
This would translate to an adjusted earnings-per-share of €1.81 to €1.85, below analysts’ consensus of €1.89, according to Bloomberg.
In November, disruption caused by a new enterprise resource planning system forced the company to lower its organic revenue growth from 3%-4% to 1%-2% for the year.
This week, Nomad said it “remains confident in its ability to achieve its previously issued full-year 2024 guidance and will provide detailed results when it reports fourth quarter earnings”.
CEO Stéfan Descheemaeker said he was pleased with the strong momentum built across the portfolio. “Our strategy is working as evidenced by the positive market share inflection we achieved in the second half of 2024 and the strong volume growth we expect to deliver in the fourth quarter of 2024.
“The increased investments we have made behind our advertising, innovation, renovation and merchandising are delivering strong returns and we will continue reinvesting to fuel the momentum in 2025.”
Descheemaeker said the company was benefiting from a frozen category that was seeing sustained volume growth “with a long runway ahead of it”, and would look to leverage these tailwinds by increasing its advertising, innovation and renovation rates to fuel growth.
“We expect to fund this growth by focusing our investment on our higher-margin must-win battles and growth platforms while executing on our revenue growth management and productivity programmes to deliver robust adjusted EBITDA and adjusted free cash flow.”
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