Nomad Foods is “evaluating” its EPS guidance on the back of a refinancing exercise as the frozen food group pointed to another quarter of declining sales.
Alongside a trading update today (20 July), New York-listed Nomad Foods said it plans to sell €800m ($914.7m) in debt due in 2033 to replace its existing notes for the same amount maturing in 2028.
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In what CEO Dominic Brisby described as a “transition year” when he discussed the 2025 results in February, sales revenue is still expected to decline over the full 12 months and to fall by 2.5% to 3.5% in the second quarter in both reported and organic terms.
Second-quarter adjusted EBITDA is predicted to be relatively flat with the same three months of last year, projected in the range of €120m to €126m, compared to €129m in the year-earlier quarter, when the metric dropped 7.2%.
“The company is evaluating its full-year EPS guidance as a result of anticipated debt refinancing activities and the associated impact of such activities on the company’s anticipated interest expense and adjusted net income,” Nomad Foods said in the trading update.
“The execution of the company’s plan continues to progress well in this rebuilding year.”
No detailed assessment of the forthcoming results was provided today.
However, Brisby said: “We are pleased to report that second quarter results are projected to be ahead of the expectations we communicated last quarter and we remain confident in our ability to deliver on the full-year organic sales and Adjusted EBITDA guidance.
“The growth of our category remains robust and we have seen the successful implementation of our previously announced price increases contributing to a year-on-year increase in gross margin for the quarter. We look forward to sharing more details when we report second-quarter 2026 results in August.”
Sales for the second quarter of fiscal 2025 had dropped 0.8% to €747m and were down 1.1% on an organic basis. Volumes fell 1%. Adjusted EPS declined 9.1% to €0.40.
At the first-quarter stage in May, management had said adjusted EPS for the full year was expected at €1.47-€1.62, versus its prior guidance of €1.45-€1.60, due to “incremental share repurchase activity during the first quarter”.
Elsewhere, Nomad Foods stuck with its 2026 outlook, anticipating a 2% to 5% decline in organic revenue and a 5-10% drop in adjusted EBITDA.
Discussing the 2025 results in February, Brisby said market share was retained for the Birds Eye and Findus brand owner but value share was lost.
He said value share decreased 30 basis points that year, taking the loss to 190 basis points since 2021.
“This is not acceptable, especially when we have the leading brands in our category. We must change this trend and we’re taking numerous steps to drive improved results,” Brisby said, noting an “improvement will not be immediate”.
Nomad Foods CFO Ruben Baldew said today that “our plans to strengthen our fundamental foundation are working” and “now is the right time to proactively explore the refinancing of our indebtedness”.
This, he added, “may increase our interest expense, but we intend to take certain actions to reduce that impact over time, primarily by reducing our net debt”.
