Nomad Foods Limited · NYSE:NOMD
Nomad Foods — Q2 2020 Earnings Presentation
22 slides from Nomad Foods's earnings presentation, Aug 6, 2020
Slide 1: Second Quarter 2020 Earnings Results
Second Quarter 2020 Earnings Results August 6 th 2020
Slide 2: Disclosures
Disclosures This Presentation has been prepared and issued by Nomad Foods Limited (the "Company"). This Presentation has been provided solely for information and background. The information in this Presentation is provided as at the date of the Presentation (unless stated otherwise). This Presentati
Slide 3: Second Quarter 2020 Financial Results Overview
Second Quarter 2020 Financial Results Overview ORGANIC GROSS ADJUSTED ADJUSTED Revenue Growth Margin EBITDA EPS +12.3% 30.3% €119m €0.34 +9.9% volume/mix 50 bps expansion 21% growth 26% growth +2.4% price 3
Slide 4: Second Quarter 2020 Highlights
Second Quarter 2020 Highlights 1 Organic revenue growth has sustained at an elevated rate, even as restrictions across Europe were relaxed beginning in early May 2 Increased factory output has led to improved customer service levels and an appropriate level of inventory to resume promotional activit
Slide 5: Strategic Drivers Support Sustained Organic Revenue Growth Beyond COVID-19
Strategic Drivers Support Sustained Organic Revenue Growth Beyond COVID-19 1 2 3 New Customer Investing Behind Growth of Retention The Core Portfolio Green Cuisine 5
Slide 6: 14th Consecutive Quarters of Organic Revenue Growth
14th Consecutive Quarters of Organic Revenue Growth NOMAD FOODS Quarterly Organic Revenue Growth 12.3% 7.7% 5.9% 5.6% 4.2% 3.5% 3.5% 2.9% 2.5% 1.9% 1.7% 1.1% 1.3% 0.9% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 6
Slide 7: Second Quarter 2020 Key Operating Metrics
Second Quarter 2020 Key Operating Metrics (in €m unless otherwise noted) 2Q 2020 2Q 2019 YoY Change Revenue €599 €538 11.4% Organic revenue growth 12.3% Gross profit 181 160 13% Gross margin 30.3% 29.8% 50 bp Adjusted operating expense (79) (79) 1% Depreciation & amortization 17 17 1% Adjusted EBITD
Slide 8: Key Free Cash Flow Metrics
Key Free Cash Flow Metrics Six months ended Six months ended (in €m unless otherwise noted) June 30, 2020 June 30, 2019 Adjusted EBITDA 239 220 Change in working capital 96 (68) Capital expenditures1 (24) (17) Cash taxes (29) (17) Cash interest & other2 (39) (31) Adjusted free cash flow €243 €87 Adj
Slide 9: Raising 2020 Guidance
Raising 2020 Guidance Updated Guidance Prior Guidance ORGANIC ORGANIC Revenue Growth HSD% Revenue Growth MSD% ADJUSTED ADJUSTED €450 – 460m Greater than EBITDA €460m EBITDA ADJUSTED Greater than ADJUSTED EPS1 €1.27 EPS €1.24 – 1.27 9 1 Adjusted EPS guidance does not reflect the potential outcome of
Slide 10: Questions?
QUESTIONS?
Slide 11: Appendix
Appendix
Slide 12: 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 13: 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 14: Reconciliation of reported to organic revenue growth
2. Reconciliation of reported to organic revenue growth Three months ended Six months ended June June 30, 2020 30, 2020 YoY Growth YoY Growth Reported Revenue Growth 11.4% 10.9% Of which: - Organic Revenue Growth 12.3% 9.8% - Calendar Effect (a) —% 1.7% - Translational FX (b) (0.9)% (0.6)% Total 11.
Slide 15: 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 June 30, 2020 June 30, 2020 Revenue 599.0 — 599.0 Cost of sales (417.7) — (417.7) Gross profit 181.3 — 181.3 Other operating
Slide 16: 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 June 30, 2019 June 30, 2019 Revenue 537.8 — 537.8 Cost of sales (377.5) — (377.5) Gross profit 160.3 — 160.3 Oth
Slide 17: Reconciliation of Non-IFRS Financial Measures
3. Reconciliation of Non-IFRS Financial Measures As reported for the six As adjusted for the six € in millions, except per share data months ended June 30, Adjustments months ended June 30, 2020 2020 Revenue 1,281.9 — 1,281.9 Cost of sales (901.7) — (901.7) Gross profit 380.2 — 380.2 Other operating
Slide 18: Reconciliation of Non-IFRS Financial Measures (continued)
3. Reconciliation of Non-IFRS Financial Measures (continued) As reported for the six As adjusted for the six € in millions, except per share data months ended June 30, Adjustments months ended June 30, 2019 2019 Revenue 1,155.6 — 1,155.6 Cost of sales (804.6) — (804.6) Gross profit 351.0 — 351.0 Oth
Slide 19: 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 Six months ended € in millions June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Profit for the period 62.6 46.2 110.0 68.5 Taxation
Slide 20: Reconciliation of Non-IFRS Financial Measures (continued)
3. Reconciliation of Non-IFRS Financial Measures (continued) Six months ended (in €m) June 30, 2020 June 30, 2019 Net Cash Flows From Operating Activities 301.0 125.9 Add back: Cash flows relating to exceptional items (a) 2.3 6.5 Employer taxes related to share based payments (b) 1.5 2.4 Non-operati
Slide 21: Reconciliation of reported to organic revenue growth
4. Reconciliation of reported to organic revenue growth Year on Year Growth, June 30 2020 compared with June 30 2019 Q1 2020 Q2 2020 YoY Growth YoY Growth Reported Revenue Growth 10.5% 11.4% Of which: - Organic Revenue Growth 7.7% 12.3% - Acquisitions 0.0% 0.0% - Calendar Effect (a) 3.2% 0.0% - Tran
Slide 22: Reconciliation of reported to organic revenue growth continued
4. Reconciliation of reported to organic revenue growth continued Year on Year Growth, December 31 2018 compared with December 31 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 FY2018 YoY Growth YoY Growth YoY Growth YoY Growth YoY Growth Reported Revenue Growth 1.5% 6.6% 15.6% 21.0% 11.0% Of which: - Organic