Nomad Foods today (31 March) booked falls in sales and profits on a pro-forma basis for the fourth quarter of 2015.
The European frozen foods group, which did not have any operations before 1 June last year when it snapped up Iglo Group, reported “pro forma, as adjusted” financial information for the three months to 31 December.
The numbers included the reported results of Nomad Foods, which include three months of figures from Iglo and data from a second clutch of assets the business bought last year from the Findus Group, from 2 November to the end of the year.
However, Nomad Foods said it removed the Findus data from 2 November the pro-forma figures and replaced it with the new asset’s reported results for the three months ended 30 September.
For comparative purposes, the reported results of the Iglo Group for the three months ended December 31, 2014 and the reported results of the Findus Group for the three months ended September 30, 2014, were added to the reported results of Nomad Foods for such periods.
Final adjustments included stripping out “exceptional items, restructurings and transaction-related items”.
For the three months to 31 December, Nomad Foods revenue, on a pro-forma, as adjusted basis, fell to EUR528.8m (US$602.3m) from EUR547m in the corresponding period a year earlier. Adjusted profit for the period declined to EUR44.7m from EUR59.5m.
On a reported basis, which included the one-off items, Nomad Foods reported a profit for the period of EUR53m and an operating profit of EUR31.3m. Sales for the three months to 31 December were EUR475.9m.
Stéfan Descheemaeker, Nomad Foods’ CEO, said: “While market conditions remain challenging, we managed to slow the rate of sales decline in the final quarter and maintained margins and cash generation in line with expectations. I remain confident that our strategy is the right one and will deliver progressive improvement through 2016. The integration of the Findus businesses continues to proceed in line with our expectations, and I am pleased with the pace we are realising synergies and merging our business processes”.
Noam Gottesman, Nomad Foods’ co-chairman and founder, added: “We are focused on supporting and nurturing our iconic brands to stabilise sales and are executing upon our strategic vision to deliver long-term growth. We believe Stefan and the whole team are making the right decisions, and we expect to experience meaningful signs of improvement through the course of 2016. While we have some challenges, there are also ample opportunities – organic and external. I believe that as we look ahead, we are well-positioned to build upon a great business and create significant value for all of our stakeholders.”
Today (31 March) Nomad announced it is weighing up the closure of its Bjuv factory and pea processing operations by the end of 2016. The closure of the factory, which makes vegetable and meal products for the retail and food service markets in Sweden, Denmark and Finland, will impact 500 jobs.