Nomad Foods Limited · NYSE:NOMD
Nomad Foods — Q3 2017 Earnings Presentation
24 slides from Nomad Foods's earnings presentation, Nov 28, 2017
Slide 1: Third Quarter 2017 Earnings Conference Call
Third Quarter 2017 Earnings Conference Call November 28, 2017
Slide 2: Disclaimer
Disclaimer BY READING THIS PRESENTATION, YOU ARE DEEMED TO HAVE READ AND ACCEPTED THE STATEMENT BELOW. This presentation has been prepared by Nomad Foods Limited. This presentation provides information about Nomad Foods Limited and its subsidiaries. Any references to Nomad shall mean Nomad Foods Lim
Slide 3: 3Q17 Highlights
3Q17 Highlights Broad-Based Organic Revenue Growth ● Third consecutive quarter of organic revenue growth, +5.9% ● Growth led by Germany, +19.3%, France +11.0% and Italy +7.5% ● UK enters into growth, +2.5% Gross Margin Expansion and Increased Guidance ● Gross margins expand 120 basis points, driven
Slide 4: "Must Win Battles" Are Driving Organic Growth
“Must Win Battles” Are Driving Organic Growth 2015 2016 2017 10.2% 8.5% 5.5% 5.9% 3.5% 1.2% 1.1% -0.8% -2.7% -3.8% -3.3% -5.4% -6.1% -7.0% -8.0% 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17E Organic Revenue Growth "Must Win Battles" Organic Revenue Growth 4
Slide 5: Organic Revenue Trends by Major Region
Organic Revenue Trends by Major Region UK Italy 11.6% 7.9% 7.5% 2.5% (1.1%) (3.6%) (2.5%) (5.8%) (5.6%) (3.4%) (6.4%) (8.1%) (7.4%) (10.9%) 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 Germany Other Countries 19.8% 19.3% 9.8% 3.5% 6.0% (1.2%) (0.6%) (0.8%) (2.6%) (2.5%) (4.2
Slide 6: 3Q17 Gross Margin Bridge
3Q17 Gross Margin Bridge Gross Margin: +1.2% 40.0% 35.0% 1.2% (1.3%) 1.3% 30.3% 30.0% 29.1% 25.0% 20.0% 15.0% 10.0% Q3 2016 Mix Price / COGS Q3 2017 Promo (Infl)/Defl Note FX Translational Impact not shown as it has a negligible impact. 6 6
Slide 7: 3Q17 Operating Performance
3Q17 Operating Performance €m, except per share data Q3/17 Q3/16 YoY Growth Revenue 459.0 439.5 4.4% Organic Revenue Growth 5.9% Gross Profit 139.0 128.0 8.6% Gross Margin (%) 30.3% 29.1% Advertising & Promotions (22.6) (21.9) 3.2% Advertising & Promotions (% Revenue) 4.9% 5.0% Indirects (a) (48.5)
Slide 8: Key Cash Flow Metrics
Key Cash Flow Metrics YoY €m YTD 2017 YTD 2016 Movement Adjusted EBITDA 246.6 262.8 (16.2) Loss on disposal of property, plant & equipment 0.2 0.4 (0.2) Working capital movement (24.8) (28.3) 3.5 Pensions & other provisions movements 2.0 (2.5) 4.5 Adjusted capital expenditure (1) (26.0) (15.8) (10.2
Slide 9: 2017 Guidance
2017 Guidance Net Revenues ● Organic revenue growth of approximately 3% ● Reported revenue expected to include a 220 bps offset related to FX translation and leap year comparison EBITDA ● Adjusted EBITDA. Approximately €325 to €327million, which implies high-single digit % growth versus 2016 when ex
Slide 10: Questions?
Nomad Foods Questions? 10
Slide 11: Appendix
Nomad Foods Appendix 11
Slide 12: Contents
Contents The following tables have been included to allow users to reconcile non-IFRS financial information as well as Adjusted financial information included within this presentation to reported IFRS financial information. 1. Definitions of all key terms and P&L measures referred to in this present
Slide 13: Definitions of all key terms and P&L measures
1) Definitions of all key terms and P&L measures referred to in this presentation Non-IFRS financial measures should not be considered as substitutes for, or superior to, measures of financial performance prepared in accordance with IFRS. They are limited in value because they exclude charges that h
Slide 14: Reconciliation from reported to organic revenue growth
2) Reconciliation from reported to organic revenue growth Year on Year Growth – Three months ended September 30, 2017 compared with three months ended September 30, 2016 Yoy Growth Reported Revenue Growth 4.4% Trading Day Impact - Translational FX (a) 1.5% Organic Revenue Growth 5.9% (a) Translation
Slide 15: Reconciliation from reported to organic revenue growth
2) Reconciliation from reported to organic revenue growth Year on Year Growth – Nine months ended September 30, 2017 compared with nine months ended September 30, 2016 Yoy Growth Reported Revenue Growth 0.4% Trading Day Impact 0.7% Translational FX (a) 2.2% Organic Revenue Growth 3.3% (a) Translatio
Slide 16: Reconciliation to Adjusted financial information, three months 2017
3) Reconciliation of reported to Adjusted financial information for the three months ended September 30, 2017 Adjusted Statement of Profit or Loss (unaudited) Three months ended September 30, 2017 As reported for the As Adjusted for the three months ended three months ended € in millions, except per
Slide 17: EBITDA and Adjusted EBITDA, three months 2017
3) Reconciliation of reported to Adjusted financial information for the three months ended September 30, 2017 EBITDA and Adjusted EBITDA (unaudited) Three months ended September 30, 2017 Three months ended € in millions September 30, 2017 Profit for the period 41.9 Taxation 11.7 Net financing costs
Slide 18: Reconciliation to Adjusted financial information, three months 2016
4) Reconciliation of reported to Adjusted financial information for the three months ended September 30, 2016 Adjusted Statement of Profit or Loss (unaudited) Three months ended September 30, 2016 As reported for the As Adjusted for the three months ended three months ended € in millions, except per
Slide 19: EBITDA and Adjusted EBITDA, three months 2016
4) Reconciliation of reported to Adjusted financial information for the three months ended September 30, 2016 EBITDA and Adjusted EBITDA (unaudited) Three months ended September 30, 2016 Three months ended € in millions September 30, 2016 Profit for the period 3.6 Taxation 17.9 Net financing costs 1
Slide 20: Reconciliation to Adjusted financial information, nine months 2017
5) Reconciliation of reported to Adjusted financial information for the nine months ended September 30, 2017 Adjusted Statement of Profit or Loss (unaudited) Nine months ended September 30, 2017 As reported for the As Adjusted for the nine months ended nine months ended € in millions, except per sha
Slide 21: EBITDA and Adjusted EBITDA, nine months 2017
5) Reconciliation of reported to Adjusted financial information for the nine months ended September 30, 2017 EBITDA and Adjusted EBITDA (unaudited) Nine months ended September 30, 2017 Nine months ended € in millions September 30, 2017 Profit for the period 109.2 Taxation 28.8 Net financing costs 57
Slide 22: Reconciliation to Adjusted financial information, nine months 2016
6) Reconciliation of reported to Adjusted financial information for the nine months ended September 30, 2016 Adjusted Statement of Profit or Loss (unaudited) Nine months ended September 30, 2016 As reported for the As Adjusted for the nine months ended nine months ended € in millions, except per sha
Slide 23: EBITDA and Adjusted EBITDA, nine months 2016
6) Reconciliation of reported to Adjusted financial information for the nine months ended September 30, 2016 EBITDA and Adjusted EBITDA (unaudited) Nine months ended September 30, 2016 Nine months ended € in millions September 30, 2016 Profit for the period 38.5 Taxation 33.5 Net financing costs 39.
Slide 24: Reconciliation of operating cash flow to Adjusted Operating Cash flow
7) Reconciliation of reported net cash flows from operating activities to Adjusted Operating Cash flow (excl. tax) for the nine months ended September 30, 2017 and the nine months ended September 30, 2016 As reported for the As reported for the € in millions (unaudited) nine months ended nine months