NOMD Earnings Prediction
The chart below shows how NOMD performed 10 days before and after its earnings report, based on data from the past quarters. Typically, NOMD sees a -3.60% change in stock price 10 days leading up to the earnings, and a -0.41% change 10 days following the report. On the earnings day itself, the stock moves by +2.22%. This data can give you a slight idea of what to expect for the next quarter's release.
NOMD Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
769.60M
0.80%
2.19%
Gross Margin
32.25%
13.64%
4.34%
Operating Margin
17.80%
21.25%
17.80%
Net Margin
9.13%
-10.14%
-2.98%
EPS
0.44
-4.35%
2.33%
No Data Available
NOMD Earnings Analysis
Nomad Foods Limited Corporation (NOMD.N) Earnings Conference Call
Positive
Historic Gross Margin Achievement: 1. Record Gross Margin: Nomad Foods achieved a gross margin of 32.3%, marking a 390 basis point increase year-over-year, the highest quarterly gross margin in the company's history.
Adjusted EBITDA Increase: 2. Significant Adjusted EBITDA Growth: Adjusted EBITDA rose by 19% year-over-year, reflecting strong operational performance despite temporary ERP-related challenges.
Adjusted EPS Surge: 3. Increased Adjusted EPS: The company reported an adjusted EPS of EUR0.55, a 28% increase compared to the previous year, driven by improved profitability and a reduced share count.
Volume Sales Recovery: 4. Positive Volume Growth: Volume sales increased by 0.7% for the second consecutive quarter, indicating a recovery in demand and effective market strategies.
Cash Flow and Returns: 5. Strong Cash Flow and Shareholder Returns: Year-to-date adjusted free cash flow reached EUR105 million, with EUR110 million returned to shareholders through dividends and share repurchases, demonstrating robust cash generation capabilities.
Negative
Revenue Outlook Reduction: 1. Lowered Revenue Outlook: Nomad Foods has reduced its full-year revenue outlook due to temporary headwinds from ERP implementation, now expecting organic sales growth of only 1% to 2%, down from the previous 3% to 4%.
ERP Transition Impact: 2. ERP Implementation Challenges: The ERP transition caused an estimated 2.5% headwind to organic growth in Q3, impacting service levels and necessitating a reduction in promotional activities to manage demand and limit out-of-stocks.
Free Cash Flow Decline: 3. Decline in Free Cash Flow: Year-to-date adjusted free cash flow decreased to EUR105 million, down year-on-year primarily due to higher working capital requirements, indicating potential liquidity concerns.
Adjusted EBITDA Forecast Reduction: 4. Reduced Profit Outlook: The company has modestly lowered its full-year adjusted EBITDA growth forecast to a range of 3% to 5%, reflecting the impact of the ERP disruptions and a more conservative growth assumption.
Working Capital Challenges: 5. Increased Working Capital Needs: The rise in working capital, driven by higher inventory levels and timing issues with receivables, suggests operational inefficiencies that could hinder cash flow in the near term.
NOMD FAQs
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NOMD Earning Call Sentiment
Nomad Foods Limited (NOMD) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
NOMD.N
1.38%Positive
The earnings call indicates positive financial performance with a strong gross margin expansion, significant adjusted EBITDA growth, and increased adjusted EPS. The company has returned substantial capital to shareholders through dividends and share repurchases. Despite some caution due to market volatility, management remains optimistic about the frozen food category. The ERP transition challenges are being managed without significant additional costs. Overall, the sentiment is positive, with a potential stock price increase of 2% to 8% over the next two weeks.
