Nomad Foods Limited (NYSE:NOMD) Q3 2019 Earnings Conference Call Transcript

Nov 07, 2019 • 08:30 am ET

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Nomad Foods Limited (NYSE:NOMD) Q3 2019 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Thank you for standing by. This is the conference operator. Welcome to the Nomad Foods Third Quarter 2019 Earnings Conference Call. As a reminder, all participants are in listen-only mode and the conference is being recorded. After the presentation there will be an opportunity to ask questions.

[Operator Instructions]

I would now like to turn the conference over to Taposh Bari, Head of Investor Relations. Please go ahead, sir.

Executive
Taposh Bari

Great. Thanks Carl. And thank you all for joining us to review our third quarter 2019 earnings results. With me on the call today are Chief Executive Officer, Stefan Descheemaeker and Chief Financial Officer Samy Zekhout. Before beginning, I would like to draw your attention to the disclaimer on slide 2 of our presentation.

This conference call may make forward-looking statements that are based on our view of the Company's prospects at this time, and actual results may differ due to risks and uncertainties which are discussed in our press release, our followings with the SEC and this slide in our investor presentation, which includes cautionary language. We will also discuss non-IFRS financial measures during the call today. These non-IFRS financial measures should not be considered a replacement for and should be read together with IFRS results. Users can find the IFRS to non-IFRS reconciliations within our earnings release and in the appendices at the end of the slide presentation available on our website.

Please note that certain financial information within this presentation represents adjusted figures for 2018 and 2019 and that all adjusted figures have been adjusted for exceptional acquisition related share-based payment and related expenses as well as non-cash FX gains or losses. All comments from hereon will refer to those adjusted numbers.

Finally, users should be aware that 2019 figures have been presented in accordance with IFRS 16, the new standard for leases. As such, certain financial metrics may not be directly comparable to 2018 figures. However, we have disclosed the impact of this change in the press release where the impact on comparability has been deemed material.

And with that I will hand the call over to Stephan.

Executive
Stefan Descheemaeker

Thank you Taposh and thank you all for joining us on the call today. Earlier today, we reported third quarter 2019 earnings results and narrowed our full-year EBITDA and EPS guidance. Highlights from the third quarter include organic revenue growth of 2.5% driven by a 4% increase from price, offset by 1.5% decline in volume and mix. Adjusted gross margin expansion of 110 basis points to 29.5%. Adjusted EBITDA of EUR96 million, representing growth of 14% and adjusted EPS of EUR0.25 per share. We are pleased with our third quarter results which demonstrated a healthy balance between topline growth, gross margin expansion, expense discipline and cash generation. Moreover, I'm proud to say that our business has now delivered 11 consecutive quarters of organic revenue growth, reinforcing the strength of our brands, the focus of our people and the sustainability of our business model.

Turning to the details of the quarter.