Nomad Foods reiterates 2025 guidance, unveils €200 million efficiency plan

LONDON - Frozen food company Nomad Foods Limited (NYSE:NOMD), currently trading near its 52-week low at $15.38, on Wednesday reiterated its 2025 financial guidance while announcing a new efficiency program expected to deliver €200 million in operational savings through 2028. According to InvestingPro analysis, the company appears undervalued based on its Fair Value estimates.

The European frozen food producer, which owns brands including Birds Eye, Findus, and iglo, maintained its full-year 2025 forecast of flat to -2% organic revenue growth year-on-year, with Adjusted EBITDA expected to decline 3% to 7%. The company, which currently generates $3.62 billion in revenue and $593 million in EBITDA, continues to project Adjusted EPS between €1.64 and €1.76, with free cash flow conversion of 90% or greater.

Nomad Foods outlined a new efficiency initiative spanning fiscal years 2026 through 2028, with savings expected to come primarily from a new Procurement Transformation Program. Additional cost reductions will target manufacturing network utilization, logistics costs, and overhead efficiencies. The company’s financial health is rated as GOOD by InvestingPro, with an attractive free cash flow yield of 18% and a P/E ratio of 9.7.

The company also established medium-term financial targets, including compound annual Adjusted EBITDA growth of 1-3% from 2026 to 2028 and approximately 15% free cash flow growth compared to the 2023-2025 period.

"While we have faced challenges in 2025, we are proud to have successfully stabilized market share, demonstrating that our Commercial Flywheel is working," said Stéfan Descheemaeker, Nomad Foods’ Chief Executive Officer, in the press release statement.

The company plans to launch a new multi-media Masterbrand campaign in the UK and Ireland this fall, with plans to extend it across Europe in 2026. Nomad Foods also highlighted upcoming product innovations, including protein meal bowls and new chicken product lines across various European markets.

Nomad Foods is headquartered in the United Kingdom and operates as Europe’s leading frozen food company with a portfolio that includes Birds Eye, Findus, iglo, Ledo, and Frikom brands. For a comprehensive analysis of Nomad Foods’ valuation and growth prospects, including 8 additional ProTips and detailed financial metrics, visit InvestingPro.

In other recent news, Nomad Foods reported its second-quarter 2025 earnings, which exceeded expectations for earnings per share (EPS) but fell short on revenue. The company posted an EPS of $0.40, surpassing the anticipated $0.38, representing a 5.26% surprise for investors. However, revenue came in at $747 million, below the expected $770.67 million. Despite the positive EPS results, the revenue shortfall has raised concerns among investors. No recent mergers or acquisitions were reported for Nomad Foods. Analyst firms have not provided any recent upgrades or downgrades for the company. These developments have occurred against the backdrop of broader market conditions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.