Nomad Foods has slashed its full-year EPS guidance as the Findus brand owner posted an anticipated decline in second-quarter sales and profits.
The New York-listed frozen food group had flagged in July that it was “evaluating” its EPS outlook for fiscal 2026 as Nomad Foods announced a debt restructuring with the issue of new notes.
Nomad Foods now expects its adjusted EPS to land in a range of €1.38-€1.53 over the 12 months, compared to a previous estimate of €1.47-€1.62.
The company said the downgrade - amounting to around 6% on both counts - was due to the “higher interest expense associated with the company's recently completed refinancing activity and higher variable interest rates”.
For the second quarter to 30 June, adjusted EPS fell €0.01 to €0.39, Nomad Foods reported today (13 August). Over the six months it fell €0.12 to €0.62.
Meanwhile, sales revenue dropped 3.1% to €724m ($835.3m) in the quarter in reported terms and was down 2.9% on an organic basis. Nomad Foods said the decrease was reflective of a 5.9% decline in volumes, offset by an increase in “price/mix” of 3%.
The declines in both reported and organic sales for the second quarter were within the 2.5% to 3.5% range that Nomad Foods pointed to in July.
It continues to expect organic sales for the full year will drop 2%-5%.
Second-quarter adjusted EBITDA was also within the July guidance, as the metric fell 4.3% to €124m. The forecast for the year remains for a decrease of 5-10%.
Nomad Foods had said in July that adjusted EBITDA for the quarter was likely to be €120m to €126m, compared to €129m in the year-earlier three months, when the metric dropped 7.2%.
Meanwhile, adjusted profit for the second quarter of this year fell 9% to €55m. There is no full-year forecast for that metric.
CEO Dominic Brisby said: “The second quarter marked an important step forward for Nomad Foods. We secured our price increase, expanded gross margins, restored momentum with key retail partners, and continued to strengthen our organisation.
"While there is more work to do, I am encouraged by the progress we are making and excited about the significant value creation opportunities ahead as we unlock the full value of our brands, supply chain, and pan-European platform."
