Nomad Foods cuts FY24 EPS view to EUR 1.72-EUR 1.77 from EUR 1.75-EUR 1.80

Lowers FY24 adjusted EBITDA view to up 3%-5% from up 4%-6%. The company said, “For the full year 2024, the Company now expects organic revenue growth of 1%-2%, versus the 3-4% prior guidance, due largely to ERP related headwinds faced in 3Q as well as more conservative growth assumptions for the remainder of the year. Management now expects Adjusted EBITDA to grow in a 3%-5% range, versus the +4%-6% prior range, and Adjusted EPS of EUR 1.72-EUR 1.77, implying growth of 7-10% compared to its prior expectation of EUR 1.75-EUR 1.80. The Company continues to expect full year cash flow conversion in the range of 90% to 95%.” Descheemaeker continued, “The results this quarter are impressive given greater than anticipated headwinds related to ERP implementation that we have faced. Our service levels were negatively impacted during the transition but are returning to near normal levels. The impact, however, has caused us to lower our full year organic sales growth outlook. We have also modestly lowered our full year Adjusted EBITDA growth and Adjusted EPS guidance given the lower sales outlook alongside our choice to continue to invest in the business. Our volume growth and market share recovery are accelerating in the fourth quarter, and we have chosen to prioritize fueling the momentum.”