Nomad Foods Limited · NYSE:NOMD
Nomad Foods — Q3 2020 Earnings Presentation
19 slides from Nomad Foods's earnings presentation, Nov 5, 2020
Slide 1: Third Quarter 2020 Earnings Results
Third Quarter 2020 Earnings Results November 5, 2020
Slide 2: Disclosures
Disclosures Certain statements and matters discussed in this Presentation, as well as the accompanying oral presentation, may constitute forward-looking statements. Forward-looking statements are statements that are not historical facts and may be identified by words such as "aim", "anticipate", "be
Slide 3: Third Quarter 2020 Financial Results Overview
Third Quarter 2020 Financial Results Overview ORGANIC GROSS ADJUSTED ADJUSTED Revenue Growth Margin EBITDA EPS +5.4% 30.4% €109m €0.30 +4.2% volume/mix 90 bps expansion 13% growth 20% growth +1.2% price 3
Slide 4: Nomad Branded Retail Sell-Through is Outpacing Frozen Food and Total Food in Western Europe
Nomad Branded Retail Sell-Through is Outpacing Frozen Food and Total Food in Western Europe Western Europe Branded Retail Sell-Through Growth* 17.3% 17.3% 14.2% 14.3% 10.3% 10.3% 8.9% 9.0% 7.5% 7.9% 6.1% 4.7% Total Food Savory Frozen Nomad Foods Q1'20 Q2'20 Q3'20 Q4 QTD ** *Branded retail sell-throu
Slide 5: Third Quarter 2020 Highlights
Third Quarter 2020 Highlights 1 Continued growth in household penetration with new consumer retention tracking according to plan 2 Gross margin expansion of 90 basis points, driven by pricing, favorable mix and fixed cost leverage 3 Advanced the expansion of Green Cuisine with the introduction of ch
Slide 6: Third Quarter 2020 Key Operating Metrics
Third Quarter 2020 Key Operating Metrics (in €m unless otherwise noted) 3Q 2020 3Q 2019 YoY Change Revenue €576 €540 6.7% Organic revenue growth 5.4% Gross profit 175 159 10% Gross margin 30.4% 29.5% 90 bp Adjusted operating expense (83) (80) 4% Depreciation & amortization 17 17 1% Adjusted EBITDA €
Slide 7: Key Free Cash Flow Metrics
Key Free Cash Flow Metrics (in €m unless otherwise noted) Nine months ended Nine months ended September 30, 2020 September 30, 2019 Adjusted EBITDA 347 316 Change in working capital 23 (96) Capital expenditures1 (37) (29) Cash taxes (42) (29) Cash interest & other2 (54) (45) Adjusted free cash flow
Slide 8: 2020 Guidance
2020 Guidance Updated Guidance Prior Guidance ORGANIC ORGANIC Revenue Growth HSD% Revenue Growth HSD% ADJUSTED Greater than ADJUSTED Greater than EBITDA €460m EBITDA €460m ADJUSTED Greater than ADJUSTED Greater than EPS1 €1.31 EPS €1.27 8 1 Adjusted EPS guidance reflects the outcome of tender offer
Slide 9: Questions?
QUESTIONS?
Slide 10: Appendix
Appendix
Slide 11: Contents
Contents The following tables have been included to allow users to reconcile Non-IFRS financial measures as well as Adjusted financial information included within this presentation to reported IFRS financial measures. 1. Definitions of Non-IFRS financial measures referred to in this presentation. 2.
Slide 12: Definitions of Non-IFRS financial measures referred to in this presentation
1. Definitions of Non-IFRS financial 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 have
Slide 13: Reconciliation of reported to organic revenue growth
2. Reconciliation of reported to organic revenue growth Three months ended Nine months ended September 30, 2020 September 30, 2020 YoY Growth YoY Growth Reported Revenue Growth 6.7% 9.6% Of which: - Organic Revenue Growth 5.4% 8.4% - Calendar Effect (a) 1.7% 1.7% - Translational FX (b) (0.4)% (0.5)%
Slide 14: Reconciliation of Non-IFRS Financial Measures
3. Reconciliation of Non-IFRS Financial Measures As reported for the As adjusted for the € in millions, except per share data three months ended Adjustments three months ended September 30, 2020 September 30, 2020 Revenue 576.3 — 576.3 Cost of sales (401.1) — (401.1) Gross profit 175.2 — 175.2 Other
Slide 15: Reconciliation of Non-IFRS Financial Measures (continued)
3. Reconciliation of Non-IFRS Financial Measures (continued) As reported for the As adjusted for the € in millions, except per share data three months ended Adjustments three months ended September 30, 2019 September 30, 2019 Revenue 540.3 — 540.3 Cost of sales (381.1) — (381.1) Gross profit 159.2 —
Slide 16: Reconciliation of Non-IFRS Financial Measures
3. Reconciliation of Non-IFRS Financial Measures As reported for the nine As adjusted for the nine € in millions, except per share data months ended Adjustments months ended September 30, 2020 September 30, 2020 Revenue 1,858.2 — 1,858.2 Cost of sales (1,302.8) — (1,302.8) Gross profit 555.4 — 555.4
Slide 17: Reconciliation of Non-IFRS Financial Measures (continued)
3. Reconciliation of Non-IFRS Financial Measures (continued) As reported for the nine As adjusted for the nine € in millions, except per share data months ended Adjustments months ended September 30, 2019 September 30, 2019 Revenue 1,695.9 — 1,695.9 Cost of sales (1,185.7) — (1,185.7) Gross profit 5
Slide 18: Reconciliation of Non-IFRS Financial Measures (continued)
3. Reconciliation of Non-IFRS Financial Measures (continued) Reconciliation of Profit for the period to EBITDA and Adjusted EBITDA (unaudited) Three months ended Nine months ended € in millions September 30, September 30, September 30, September 30, 2020 2019 2020 2019 Profit for the period 56.4 39.
Slide 19: Reconciliation of Non-IFRS Financial Measures (continued)
3. Reconciliation of Non-IFRS Financial Measures (continued) Nine months ended (in €m) September 30, 2020 September 30, 2019 Net Cash Flows From Operating Activities 321.3 175.5 Add back: Cash flows relating to exceptional items (a) 3.3 7.6 Employer taxes related to share based payments (b) 2.3 5.1