Nomad Foods Limited (NYSE:NOMD) reported first-quarter earnings of 27 cents per share on Thursday.
This result surpassed the analyst consensus estimate of 21 cents. However, the figure marks a decrease from 37 cents per share in the prior-year period.
The frozen foods giant posted quarterly sales of $837.499 million. This exceeded the projected $796.160 million. It also reflects growth over the $799.326 million reported during the same period last year, according to Benzinga Pro.
Guidance Hike and Cash Position
Management raised its fiscal 2026 adjusted earnings per share guidance. The new range sits at $1.72 to $1.90, up from the previous $1.71 to $1.89. This outlook remains above the $1.70 analyst estimate.
By the quarter ended March 31, the company held cash and equivalents of 282.5 million euros ($331.78 million).
Nomad Foods Margins Face Inflationary Headwinds
Organic revenue fell 5.3%, pressured by a 4.4% volume decline. Gross profit dropped 13.2% to 184 million euros ($216.48 million). Gross margin contracted 210 basis points to 25.7%.
The company attributed the margin squeeze to supply chain inflation and the timing of price increases. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) fell 22.9% to 93 million euros ($109.42 million).
CEO Eyes Strategic Growth
CEO Dominic Brisby noted “meaningful progress” in strengthening the company’s foundation.
“Since the beginning of the year, we have successfully secured our planned level of price increases,” Brisby stated. He highlighted the recruitment of top-tier talent and two new Regional Presidents.
Founder Noam Gottesman added, “Our market advantages are increasingly evident, with accelerating category growth and resilient demand.”
Nomad Foods Price Action
NOMD Stock Price Activity: Nomad Foods shares were up 3.85% at $10.51 during premarket trading on Thursday, according to Benzinga Pro data.
Photo by Thapana_Studio via Shutterstock
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