Release Date: March 03, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: What is the basis for Nomad Foods' 1% to 3% organic sales growth forecast for 2025? A: Stefan Descheemaeker, CEO, explained that the forecast is based on a low inflation environment with 1% category growth. The company's portfolio, which is two-thirds poultry, fish, and vegetables, is growing well. The commercial flywheel and innovation are contributing to growth, and the company is addressing ERP disruptions experienced in the UK by slowing down the process and applying lessons learned.
Q: How is Nomad Foods managing price/mix dynamics in the first quarter of 2025? A: Ruben Baldew, CFO, stated that while they cannot provide specific guidance on price and volume, the company continues to focus on driving efficiencies and reinvesting in volume. Inflation is lower, and they are not fully hedged yet, but they might see some pricing adjustments if inflation impacts cost prices. The strategy remains to drive efficiencies and reinvest in volume.
Q: How is Nomad Foods balancing innovation and renovation between Must Win Battles and growth platforms? A: Stefan Descheemaeker, CEO, noted that most innovation will focus on Must Win Battles, which constitute about 50% of the business. Growth platforms, although smaller, are growing rapidly and will also receive significant innovation efforts.
Q: What is the status of Nomad Foods' organizational changes and execution improvements? A: Stefan Descheemaeker, CEO, emphasized that organizational improvements are ongoing. The company has simplified its structure significantly, reducing the number of reporting countries and investing in areas like revenue growth management and innovation. The focus is on maintaining cost consciousness to reinvest savings into A&P and innovation.
Q: What are Nomad Foods' strategic priorities regarding acquisitions? A: Stefan Descheemaeker, CEO, stated that the focus remains on the core portfolio, but the company is open to strategic acquisitions that offer synergies, particularly in new subcategories or countries. The gap between sellers and buyers is narrowing, and the company is considering under-the-radar opportunities rather than large, shiny acquisitions.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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