Nomad Foods Limited (NYSE:NOMD) Q2 2020 Earnings Conference Call - Final Transcript
Aug 06, 2020 • 08:30 am ET
Good day and welcome to the Nomad Foods Second Quarter 2020 Earnings Conference Call. Today's conference is being recorded.
At this time, I'd like to turn the call over to Taposh Bari, Head of Investor Relations. Please go ahead.
Thank you for joining us to review our second quarter 2020 earnings results. With me on the call today are Chief Executive Officer, Stefan Descheemaeker; and Chief Financial Officer, Samy Zekhout.
Before we begin, 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, expectations and intentions at this time, including consideration related to the impacts of COVID-19. Actual results may differ due to risks and uncertainties, which are discussed in our press release, our filings 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 may 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 does represent adjusted figures for 2019 and for 2020. All adjusted figures have been adjusted for exceptional items, acquisition-related, share-based payment and related expenses, as well as non-cash foreign exchange gains or losses, and all comments from hereon will refer to those adjusted figures.
And with that, I will hand the call over to Stefan.
Thank you, Taposh, and thank you all for joining us on the call today. First and foremost, I hope that you and your families continue to stay healthy and safe throughout these unprecedented times.
Earlier today, we reported our second quarter earnings results, marking Nomad's 14th consecutive quarter of organic revenue growth. In addition, we also announced our intention to commence a tender for up to $500 million for ordinary shares, representing a significant return of capital to our shareholders.
Starting first with our second quarter earnings results. We're pleased to report another quarter of exceptional performance with nearly every financial metric exceeding the expectations that we provided on first quarter earning call. Second quarter financial highlights were as follows. Organic revenue growth of 12.3%, driven by a 9.9% increase in volume and mix, and a 2.4% increase in price. This performance was in line with the business update that we provided in June.
Gross margin of 30.3%, reflecting 50 basis points of expansion.
Adjusted EBITDA growth of 21% to EUR119 million. Adjusted EPS growth of 26% to EUR0.34 per share.
Based on our year-to-date performance and our expectation that sales growth in the back half will now remain elevated, we are raising our organic revenue guidance for the year. And are expect to be above the high-end of our prior range for both adjusted EBITDA and adjusted