Nomad Foods (NYSE:NOMD) reported first-quarter 2026 results that management said were slightly ahead of internal expectations, despite lower organic revenue, margin pressure and a sharp year-over-year decline in adjusted EBITDA.
Chief Executive Officer Dominic Brisby, speaking on his second quarterly earnings call since taking the role on Jan. 1, said the company remains confident in its full-year outlook for organic sales and adjusted EBITDA. Nomad also raised its adjusted earnings per share guidance, citing share repurchase activity during the quarter.
“First quarter results were slightly above our internal expectations, and we remain confident in our ability to deliver on the full-year organic sales and adjusted EBITDA guidance we provided last quarter,” Brisby said.
Organic Sales Decline While Retail Sell-Out Holds Flat
Nomad Foods said first-quarter organic sales declined 5.3%, while retail sell-out was flat year over year. Brisby said management views retail sell-out as a better indicator of underlying demand.
The company attributed the gap between shipments and consumer demand to two mechanical factors. First, some retailers built inventory in December ahead of planned price increases, creating a destocking headwind in January. Second, Nomad ended what Brisby called its historical practice of shipping ahead of consumption late in the quarter in order to better align sell-in with sell-out.
“Whilst this resulted in a sharp year-on-year decline in shipments at quarter end, we believe it is a healthier and more efficient operating model,” Brisby said.
Chief Financial Officer Ruben Baldew said the change to end-of-quarter order patterns negatively affected first-quarter results but is not expected to have a material impact on quarterly results going forward.
Margins Pressured by Cost Inflation and Timing of Pricing
Nomad’s gross margin declined by 210 basis points in the quarter, as the company received only a partial benefit from price increases while continuing to face cost pressure. Adjusted EBITDA fell 23% year over year, reflecting the organic sales decline, lower gross margin and a modest timing benefit from advertising and promotional spending shifting from the first quarter to the second quarter.
Adjusted earnings per share were EUR 0.23, down EUR 0.12 from the prior year.
Baldew said cost pressure is expected to continue, but pricing and productivity should contribute more positively to gross margin for the rest of the year.
Category Growth Remains Positive, But Share Declines
Brisby said Nomad’s overall category grew 3.8% in the quarter, accelerating from 2% growth in the prior quarter. He noted that an early Easter likely boosted March volumes, but category growth had been tracking at about 3% before March.
Despite the category growth, Nomad experienced what Brisby described as a temporary market share setback. Value share declined 60 basis points year over year, while volume share fell 20 basis points.
Brisby said the decline was caused by select retailers pausing orders and promotions during pricing negotiations. He said the company had anticipated the risk of disruption in its annual guidance and has now secured the price increases assumed in its plans.
“Cost inflation remains real and industry-wide,” Brisby said. “We therefore maintained our resolve to secure pricing consistent with our long-term track record.”
Performance varied by market. Brisby said Nomad underperformed in Germany and France, largely due to pricing negotiation disruptions, while the U.K. remained soft but improved meaningfully from last year. The company reported low single-digit growth in Italy, Austria, Portugal, Sweden and Switzerland; mid-single-digit growth in Serbia; high single-digit growth in Norway; and mid-teens growth in Croatia.
Cash Flow Supports Buybacks and Dividend
Nomad reported an adjusted free cash flow conversion ratio of 36% for the quarter, up from 24% in the first quarter of 2025. Baldew said part of the improvement reflected different timing of interest payments, but he also pointed to underlying progress in working capital.
The company used cash flow to fund EUR 20 million of dividend payments and EUR 24 million of share repurchases, equal to 2.7 million shares, while ending the quarter with EUR 283 million in cash. Baldew said Nomad has no debt maturities until 2028.
Baldew also said the board declared another cash dividend of $0.70 per share, payable May 28, 2026, to shareholders.
Company Maintains 2026 Sales and EBITDA Outlook
Nomad reaffirmed its full-year 2026 guidance for organic revenue and adjusted EBITDA. The company continues to expect organic revenue to decline 2% to 5% and constant-currency adjusted EBITDA to decline 5% to 10%.
Nomad raised its adjusted EPS guidance to a range of EUR 1.47 to EUR 1.62, up from EUR 1.45 to EUR 1.60, due to share repurchases completed during the first quarter. At recent exchange rates, Baldew said that equates to $1.72 to $1.90.
The company continues to expect adjusted free cash flow conversion of at least 90% for the full year. Baldew said second-quarter organic sales and adjusted EBITDA growth rates are expected to be below full-year targets due to the shift in advertising and promotional spending into the quarter and some residual impact from earlier pricing negotiation disruptions. He said the company expects more robust results in the second half.
Brisby also outlined organizational changes, including new regional presidents and a new chief marketing officer. He said Nomad is restructuring its marketing organization, which he described as overly complex and inefficient, with the goal of reducing non-working advertising and promotion spending and putting more resources behind consumers and brands.
The company said those actions support its previously announced EUR 200 million three-year cost efficiency target. Brisby said Nomad will provide more detail on its strategy and growth plans at an analyst and investor day in New York this fall.
About Nomad Foods (NYSE:NOMD)
Nomad Foods Limited is a leading frozen foods company headquartered in the United Kingdom, operating under the ticker symbol NOMD on the New York Stock Exchange. The company's portfolio comprises well-known consumer brands such as Birds Eye, iglo, Findus, Goodfella's and Aunt Bessie's, covering a wide range of categories including vegetables, seafood, ready meals, pizzas and desserts. Nomad Foods focuses on delivering convenient, high-quality frozen products designed to meet evolving consumer preferences for taste, nutrition and ease of preparation.
Formed in 2015 through the acquisition of Iglo Group by investment firms Permira and Goldman Sachs Asset Management, Nomad Foods was created with the strategy of building Europe's largest frozen foods platform.
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