Nomad Foods Limited · NYSE:NOMD
Nomad Foods — Q3 2018 Earnings Presentation
23 slides from Nomad Foods's earnings presentation, Nov 8, 2018
Slide 1: Third Quarter 2018 Earnings Results
Third Quarter 2018 Earnings Results November 8, 2018
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: Third Quarter 2018 Financial Results Overview
Third Quarter 2018 Financial Results Overview Organic Adjusted Gross Margin Adjusted EBITDA Adjusted EPS Revenue Growth +1.9% 28.4% €84mn €0.26/share +1.8% volume/mix +50bp +7% growth +8% growth +0.1% price before the impact of harvest and acquisition mix Raising full year 2018 guidance to the upper
Slide 4: Third Quarter 2018 Highlights
Third Quarter 2018 Highlights Q3 marks Nomad’s seventh consecutive quarter of organic revenue growth Successfully navigated one of the hottest and driest European summers on record Delivering against product renovation and innovation agenda Strong performance of Aunt Bessie’s and Goodfella’s acquisi
Slide 5: Recently launched a new brand campaign for Aunt Bessie's
Recently launched a new brand campaign for Aunt Bessie’s Focus on the roast Increase mid-week Enhance all elements occasion consumption of marketing mix 5
Slide 6: Key Operating Metrics
Key Operating Metrics (in €m unless otherwise noted) 3Q 2018 3Q 2017 YoY Change Revenue €531 €459 15.6% Organic revenue growth 1.9% Adjusted gross profit 151 139 8% Adjusted gross margin 28.4% 30.3% (190) bp Adjusted Operating expense (79) (71) 12% Advertising & promotion expense (27) (23) 18% Indir
Slide 7: Key Free Cash Flow Metrics
Key Free Cash Flow Metrics (in €m unless otherwise noted) 3Q 2018 YTD 3Q 2017 YTD Adjusted EBITDA €276 €247 Change in working capital (116) (23) Capital expenditures1 (18) (26) Adjusted operating cash flow €142 €198 Operating cash flow conversion2 51% 80% Cash taxes3 (11) (13) Cash interest & other4
Slide 8: Raising 2018 Guidance to the Upper End of the Prior Range
Raising 2018 Guidance to the Upper End of the Prior Range Organic Revenue Growth Adjusted EBITDA Adjusted EPS growth at a upper end of upper end of Low-single digit €365 to €370 €1.14 to €1.17 percentage rate million per share 2018 guidance equates to the following when translated into US dollars, t
Slide 9: Nomad Foods Q&A
Nomad Foods O&A
Slide 10: Appendix
Appendix 10
Slide 11: 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. Third Quarter 2018 Adjusted Gross Margin Bridge 2. Definitions of all key
Slide 12: Third Quarter 2018 Adjusted Gross Margin Bridge
1. Third Quarter 2018 Adjusted Gross Margin Bridge 33.0% Underlying base gross margin expansion of 0.5% 0.7% 0.1% -0.3% 31.0% -0.9% 30.3% -1.5% 29.0% 0.1% 28.4% 27.0% 25.0% 23.0% Q3 2017 volume & price & COGS harvest Goodfella's and FX translation Q3 2018 mix promo (ex harvest) Aunt Bessie's mix 12
Slide 13: Definitions of all key terms and P&L measures referred to in this presentation
2. 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: Organic revenue growth
3. Reconciliation of reported to organic revenue growth Year on Year Growth – September 30, 2018 compared with September 30, 2017 Three Months Ended Nine Months Ended September 30, 2018 September 30, 2018 YoY Growth YoY Growth Reported Revenue Growth 15.6% 7.6% Of which: - Organic Revenue Growth 1.9
Slide 15: Reconciliation of reported to Adjusted financial information, three months 2018
4. Reconciliation of reported to Adjusted financial information for the three months ended September 30, 2018 Adjusted Statement of Profit or Loss (unaudited) Three months ended September 30, 2018 As reported for As adjusted for (in €m, except EPS) three months ended Adjustments three months ended S
Slide 16: EBITDA and Adjusted EBITDA, three months 2018
4. Reconciliation of reported to Adjusted financial information for the three months ended September 30, 2018 EBITDA and Adjusted EBITDA (unaudited) Three months ended September 30, 2018 (in €m) Three months ended September 30, 2018 Profit for the period 36.3 Taxation 10.0 Net Financing Costs 12.1 D
Slide 17: Reconciliation of reported to Adjusted financial information, three months 2017
5. 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 As adjusted for (in €m, except EPS) three months ended Adjustments three months ended S
Slide 18: EBITDA and Adjusted EBITDA, three months 2017
5. 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 (in €m) Three months ended September 30, 2017 Profit for the period 41.9 Taxation 11.7 Net Financing Costs 8.6 De
Slide 19: Reconciliation of reported to Adjusted financial information, nine months 2018
6. Reconciliation of reported to Adjusted financial information for the nine months ended September 30, 2018 Adjusted Statement of Profit or Loss (unaudited) Nine months ended September 30, 2018 As reported for As adjusted for nine (in €m, except EPS) nine months ended Adjustments months ended Septe
Slide 20: EBITDA and Adjusted EBITDA, nine months 2018
6. Reconciliation of reported to Adjusted financial information for the nine months ended September 30, 2018 EBITDA and Adjusted EBITDA (unaudited) Nine months ended September 30, 2018 (in €m) Nine months ended September 30, 2018 Profit for the period 129.7 Taxation 39.2 Net Financing Costs 36.1 Dep
Slide 21: Reconciliation of reported to Adjusted financial information, nine months 2017
7. 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 nine As adjusted for nine (in €m, except EPS) months ended Adjustments months ended Septe
Slide 22: EBITDA and Adjusted EBITDA, nine months 2017
7. 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 (in €m) Nine months ended September 30, 2017 Profit for the period 109.2 Taxation 28.8 Net financing costs 57.0 Dep
Slide 23: Reconciliation of net operating cash flows to Adjusted Operating Cash Flow
8. Reconciliation of reported net cash flows from operating activities to Adjusted Operating Cash flow (excl. tax) for the nine months ended September 30, 2018 and the nine months ended September 30, 2017 (in €m) Nine months ended Nine months ended September 30, 2018 September 30, 2017 Net Cash Flow