NOMD - Earnings call 4 2023 | Nomad Foods Limited

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Operator

Greetings, and welcome to the Nomad Foods Fourth Quarter 2023 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded.

I would now like to turn the conference over to your host, Mr. [ Amit Sharma ], Head of Investor Relations for Nomad Foods. Thank you.

begin. may You

Unknown Executive

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refer Unless XXXX. adjusted information All certain otherwise losses. expenses here that share-based for numbers. financial noncash well related this FX XXXX costs, within have these will adjusted items, from comments figures gains as presentation figures been and and note on compensation Please acquisition-related adjusted noted, to exceptional represents for or as adjusted

to will hand you With Stefan. that, I over

Stéfan Descheemaeker

guidance. a will over our the a categories begin growth offer before it Amit. and would to accelerated outlook handing quarterly for then year solid I XXXX a review health our I results. highlights financial of results from frozen detailed of our Thank to by comments few our Samy quarter and and full on fourth you, offering initial like few the

substantially, of performance. of Quarterly our Nomad and consecutive full month organic and cash we organic as in a us another flows, us our team I'm sequentially strong enable line record each quarter. of top quarterly continue initiate cash financial sales enabling to EBITDA. by year improved X.X%, gross XXXX to track a positive uninterrupted quarter generate continue sales growth of performance with trends and Foods proud to the quarter high our finished bottom sixth margins improved delivered of volume and quarter our top-tier and solid to record Fourth increased dividend. annual

key I'm our building of excited the as to profitable about even growth drivers long-term momentum begin more our accelerate.

challenging even and impact operating line and received in top macros XXXX many for our of growth As we stronger and return the to typical expect to cadence, we years bottom come.

be in Specifically, by sales we million, to EUR is EBITDA expected EUR X.XX, expect increase of the to which adjusted EUR is XXX X.XX to including to by million to X% to X% XXX Adjusted and to and to to X% X%, volume increase expected XX% XXXX share. X% EPS growth. organic range implies EUR positive

flow of cash flow range. We with cash XX% to another converging the XX% strong expect generation year

few was highlights fourth X.X% as modestly growth ForEx. me unfavorable offset Fourth increased net let that, quarter X.X% by performance. sales a With provide on organic our by quarter of

productivity. by moderated improved XXX gross points more the and margins sequentially last focus from since improved pricing basis XXXX. of declines lowest the to volume/mix Fourth quarter due continued than levels to quarter and disciplined optimize Our third quarter promotions the on

ahead adjusted EBITDA of we EPS better behind A&P of margin continue XXX brands. of inflation, absorbed free EUR conversion full X.XX million of our for quarter, cash both flow our to above than even and year, during expected, the expectations. investments gross in COGS generated XXX%, came well range. the year million cash in increase highest, share, and We full to substantial with Our EUR Adjusted ratio million targeted XXX enabling EUR as also one came EUR nearly of per us of XXX our

effect, our at to and A cash of strong quality share, a a milestone enhance cash and the flows for consistently value. resilience long track record Nielsen effective To quarterly foundation level, our growth. to sales At to ability X.XX shareholder our significant long-term period EUR per of by X%, and capital reported nearly Nomad and sustainable sales trends. and a dividend the including Foods in XX is testament of sequentially business confidence increased our value the allocation market ending improving initiated our weeks of by notable that we IQ, as a retail December the volume generate share cash for flows XX,

growth delivering positive volume and us key in year-over-year trends positive confidence share greater in recent growth volume Our returned markets, giving in are XXXX. both many

remains X Europe core segment healthy. largely the food Underlying categories frozen pricing highly mid- remains in penetration the extraordinary frozen trends Frozen last penetration X improving in and with years. grow in with Even over XX% last household X years, And last level stable consumption the importantly, high unprecedented food to remained in even pricing even continue periods. inflation-driven relevant has markets the key our the high for in the key volume enjoy to The our markets food more consumers. most with also of range. in

affordable. food remain not a that Frozen to sustainability categories convenience, with consumer why. it's of aligned And number perfectly secular see and including nutrition, trends, difficult highly taste,

and promotion, environment. using peas our markets, value of for instance, in meal packs and the tremendous highlighting a a waffles the consumers consideration offering our proposition fingers, around a key $XX of current enjoy can fish X many in product for For family of value

our ourselves positioning investments in capture behind increasing are a biggest profitable by this of share most growth We and to opportunities. our greater focus

of fourth our XX made Win bigger Must the nearly Our quarter our high-priority These in of retail for share Battles. promotion spending half nearly and disproportionately these gross and opportunities were of and XX% share profit. a total top against advertising sales account large even by investments higher increased

in encouraging and trends growth XXXX. opportunities to in look Our our me gives many recent we greater confidence plans of are as revised these very

The in in quarter our ramp-up continue significant will XXXX. investment fourth A&P

Brand our drive our remind aspect relevant launched relationship to loved connection to an greater to brands most Master to emotional we campaign our brands. brand the affinity first to and Specifically, the and the in with iconic of build quarter consumers of our

focus products. increasing around given of stronger debate brands our claims to Our naturalness highlighting the messaging will also goodness our the health on the and of emphasize [indiscernible].

Mexican to Historically, have help our last new of of nearly branded for week. innovation X exciting annual the XXXX. [indiscernible] below higher and have engine. mentioned multilayered it these call, occasion of accounted be fillet innovation an for with regaining fell also King's to that new Along and products reignite driving our launched products We're home through pipeline the will X% I our momentum in and cream A&P level branded premium innovations year. committed Germany rest the the fish [indiscernible]. of ice sales,

have our innovation our behind a retail in activation support new with other and We of marketing pipeline. full products along both this planned spectrum

necessary in in but majority we we but remains pricing track and our over rest months. which the the successfully. retail expected, last our conversations successfully difficult mentioned a remain Retail complete call, the As have completed partners our of dynamic, next discussions of resolved few pricing I this majority the markets with on were of environment few to

At largest the same time, potential allocating spending we our see we and impact. promotion the are optimizing resources where

in our CAGNY at last comments As us These conference upgrading are growth I analytics investments in our our and execution. for in investing the growth our in data, my in accelerated meaningfully mentioned XXXX we position are retail to week, beyond. capabilities

and insight maximize volumes. our management and wider a profitable comprehensive more revenue growth toolkit better have We to

These food greater strategies they are believe I a growth markets. our capture the to and share us working, in frozen of that position strongly

growth to food underpinned and investments unprecedented a of across by our supply our chain frozen across volatility agenda, accelerated productive is increasing during the particularly supply period aisle. resilience The is Our our of unmatched chain. nimbleness drive

it that more But are network. we while great our accomplishing increasing across I'm our of fact efficiencies on focus even proud driving the

We and reduce with suppliers complexities are logistics manufacturing key and establishing optimizing risk savings. to reducing procurement and network, our supply generate strategic relationships

delivered chain even and XX%. as savings service cash over higher in improved cost XXXX, levels flows supply to our strong Our

We expect similar trajectory in XXXX.

maximize we While foundation shareholder We execute ever. flow flexibility at capital X% the EUR XXX as of more strength a new XXXX, adopted earlier, quarterly of as a topic back bought we deployment million the to value-enhancing million allocation cash generated our program. a initiated continue XXXX, cash of repurchase strategies. dividend our shares free balanced capital our of in cash balance mentioned to sheet than highlighting flows I cash intended $XXX strategy are and of our annual flow, highest a Strong second and share in returns. outstanding cash

record EBITDA and high in In margins with conclusion, sales we XXXX strong flows. and cash delivered improving

Our XXXX. volume positive sequentially, positioning growth us improved quarterly in volume deliver share to trends

to to will X% for X% XX% shareholders. X% cash growth, categories We for of positioning are us I'm XX% deliver more X% growth of and which XXXX returns I revenue the iconic adjusted in investments many organic EPS of frozen growth superior our increasing and attractive unlock come. attractive growth deliver targets believe X% adjusted growth years full our brands, long-term confident revised conversion, EBITDA of delivering to our to to potential highly sustained to and to

me Samy? in that, over details. let our our the quarter greater fourth guidance hand call review With and to Samy to XXXX results

Samy Zekhout

pleased of at morning, Thank and you, everyone. good Stefan, Foods. quarter present Nomad solid another I performance to am

to fourth quarterly unfavorable X.X%. X.X%, the in Organic by For EUR FX sales reported by million. quarter, by increased X.X% sales XXX revenues net increased impacted while

primarily from sales cover pricing by benefit organic Our was to to we driven as inflation. pricing continue growth

during quarter X.X% quarter our improvement XXXX. Our volume/mix decline lowest was X the a third and volume/mix since down quarter, marked the from

volume quarter gross cost XX.X% Fourth the quarter by the trends EUR from basis quarter expenses. over as by the increased margin by EUR points and operating contribution favorable to gross partially and gross X.X% from to in to better while execution. million discipline, and RGM year ago improving procurement EBITDA increased increased was higher million, profit offset due Adjusted to XXX XXX profit higher XXX X.X% pricing by

per to last earnings operating share share euro-dollar was current the expense expenses. partially share. indirect increased investment declined adjusted well net our year by higher quarter declined EUR our due year's interest Our step-up buybacks. rate, the X.X% per was EUR by expense costs X.XX to while A&P quarter of from from adjusted higher X.XX year the as by ago as EPS as quarter adjusted impact ago spot interest Adjusted from USD offset X.XX refinancing, from by At income higher only XX% due X

to XX.X%, including by XXXX, or our EPS increased to higher the million. $X.XX Gross XX expense X.XX the EUR to Full debt. refinancing growth. X.XX adjusted sales of nearly EUR declined X.X% adjusted points increased while For margin sales due year net by year XXX full organic billion, to from EUR EBITDA basis increased X% interest by X.X% of

XXXX, more for stock our During XX we shares previous repurchased buyback million of $XXX authorization. under million our than common nearly

a million by Stefan authorization. year $XXX have certain and share of EBITDA cash driven yet As cash flow new improvement, favorable receivables. timing of delivered in year another capital with free we on repurchase adjusted strong million, mentioned, strong full working higher now We flow $XXX XXXX

as fourth focused and working to cash collection effective capital we on well performance. in expectations cash ahead our our year quarter highly management, continue be flows to inventory improve of Full came

than increased XX last XXXX modestly investment. more year million, full EUR increase remain interest. capital year nearly supporting EUR highly cash by a long-term XX we of nearly working as disciplined Specifically, from on million offsetting strategic XXX million CapEx decreased in EUR

at strong XXX%, QX XX% targeted in our of cash year cash well full performance, Given conversion to the XX%. ahead came

is returns. level shareholder in a deliver quarterly and Maintaining attractive sheet the week, our flows We our of to our paramount of of cash reinforcing to cash execute to growth. per strong, earlier capital and effective first paid continue consistent share to ensuring strength generate cash high dividend allocation long-term ability conversion balance this our to X.XX EUR enhanced our

XXXX. our guidance for to Turning

as momentum enter We are XXXX. line we with our pleased building top

net X% X% adjusted to growth X.XX EUR EBITDA to per expect of of EPS revenue adjusted to share. growth We of deliver to X% X% EUR and X.XX

the in continue to We conversion range. XX% of strong to cash XX% expect cash with flow range

many relatively continued volume/mix positive X% expect positive half. full price Volume organic year. Our between key growth X% to markets, sequential in and the be of volume is already in beginning second inflect to are to improvement to trends expected and XXXX volumes the turn in including our for to growth positive half first in growth the consolidated balanced we

benefit some we relatively full and trends offset in XXXX including the and margin to gross on costs our to expect picking expect in inflation, lower improve cost headwinds initiatives specifically, fees year other improving we into of volumes, inflation flat from with productivity more as focus We vegetables. costs for continue by greater buckets, pricing favorable

mentioned, investing brands. our to Stefan committed remain As behind we

of adjusted 'XX, nearly Overall, our guidance XXXX, share continue in U.S. count. increase from greater X% lap A&P $X.XX benefit the even and and an costs rate strong exchange earnings in February At as we particularly performance spending dollar to to to increased we EPS to in interest share to as impact XX% implies XXXX first at half translating per growth and from XX% by euro as XXXX. year-over-year in $X.XX higher planned have we drive in XXXX, volume lower

be in is likely line pattern. In line terms of historical top quarterly cadence, to with our largely

profit particularly first to our account investment, share flow the instituted disproportionately and sheet repurchases. a shareholders the any will strong timing given half through and due for the of our the recently earnings strategic of to Absent in acquisition second flow, the remeasurement through balance quarter. and returning of higher to our the opportunistic A&P capital of remain given committed dividend timing we share However, and cost cash

financial proven have have opportunities We results are of a of ahead by track us. we excited top-tier more even record and the

growth of years confident XXXX our delivering at come. attractive near to and tier for are the top food We in peers or of many

questions. over will operator I call Thank the turn the for now to you. your

Operator

from with Securities. comes John Baumgartner line Mizuho question of first Our Instructions] [Operator the

John Baumgartner

Can I and to I margin, better wanted bit than quarters. And question, relative was was walk which expected. drove into I of you've pricing Thanks moderation matching understand inflation sort couple underlying it And coming of How much through? efficiencies of dig pricing? that to that you better upside? a what inflation last to for I gross of to cost through cost wanted QX relative the that sort much think got of was how

Samy Zekhout

ago. we changed you the paydown look effectively, good performance Actually, at because the our in a saw prior I same. in effective though we base. year points John. you, would the the year, beginning of year even spreads impact pricing end basis gross say were, I nearly pretty the from to the spread as effective effectively, was the at Thank Yes. when had of margin starting the pricing had of mean we driver frankly, a a XXX main much quarter

from So a discipline good coming lot it better of and procurement. was

a So and overall were clearly we that have trends. moment, that efficiency. benefit from improving continue we at that same to fact and the We on in improvement there some focus as clearly had volume up productivity area. higher And stepped

if some we ago. RGM boosted the on If up, promotional volume, we effective reduced this a in which the But year at intervention. you had stepped specific time, recall, effectively effectively, impact sharpen define really implemented to same that there were had also that you advertising want, strategy the

into mean, progress. a has I So element component, the that volume

John Baumgartner

the in And lighter were at in than came we the a I bit that looking little think Okay. as looking for a volume/mix, quarter. follow-up,

some think see of we mentioned walk bigger you can picture, what XXXX? seeing in the sort seeing in evolves AGI onetime what channels, through you how you're the But there. I what Nordics, Nielsen, nonmeasured you're can't the and in that drag

Stéfan Descheemaeker

businesses. Nielsen's John, actually, our capturing of part I Well, point, your [ is APOS only to ] think

bit brands know, for service. to your [indiscernible] and we the label. food include Adriatic, you include doesn't of include private like a it Swiss, it So it by And have, point, Ireland, doesn't doesn't example, some Nordics, as and way, need

to value, very So say, volume see, close in let's now when each one you actually. getting and X value quarter

to is, hasn't picture. the Nordics made any whole change you What well, see

the much definitely. our line of it's helped, numbers. weather with So Adriatic rest was very in

So fine. we're doing

QX to that You remember opposed lot is business making And ice the may cream. strong it frozen Adriatic but less is ice than in probably progress. mostly food a cream, a as we're of was was

difference. basically And main the so that's

that I way. plus, a is put Adriatic So would

a sell-in sellout. between And then and lot in movement also let's QX, we have of, say,

you example, food lower a So sell-in of have end And nicely the on us. the for of the time, service, of year to top than that, most then at contribute did sell-out. is

we let's So see not X. what overall, interestingly, quarter say,

recent numbers in delta around to want the or, quite have being say, between base, selling, you thing think they're numbers if way of on same the to and sell-in extent. service of similar. I January, some let's with the And the terms final But say, food other and this, let's Adriatic monthly a service. but in

Stephen Robert Powers

of X/X remember, that's business in covered it's Nielsen. John, not And our

So they at way But right directionally, the little think look did always a bit dislocation. to it's a it. I of

Operator

with the comes line Powers Bank. Deutsche question next from Steve of Our

Stephen Robert Powers

Good cadence And quote expect that detail, the we and the remarks to press spending in the of set terms on morning, maybe through talks on everybody. more prepared you of quickly price year. on volume just as little the release I of in the would And could, a spending XXXX. guess of bit then go offense the your There's you Any as tone playing if that? a versus Thank maybe pacing see you. in you do of that great. returns also how be about perspective

Samy Zekhout

where growth, the of a started, way, digit to double was we Well, even of I that this started A&P. we think faster. keep QX going the intent point, the and the reincrease to in to have year, we we really already started in our QX by end course all

to the we absolutely even well, invest total faster the to able margin the be it to So so our behind us A&P those And is be that sense. was crucial overall, for by we to brands. gross makes go to which able that keep than think way, would sales, going invest enough, interestingly

one mustine more all have battles. things starting because, Steve, component, more with again, for but other that's our we A&P is together So and

our basically what call an integrated We also obviously It's we which is view, flywheel it's have growth A&P. rapid where management.

invest where also to this Innovation, be more need better do our pricing more in subdued. we bit a need do pipeline how or do after promotion, whether years, were we So which starting probably to X to in is

the we to see So the volume we improvement to of half see gradual year. second to really expect -- turning by positive growth

linear steady, going not to to It's but linear. going But it's not be be to it's be going guys.

category, we pricing very X combination brands. there initiatives very -- So trajectory are on with overall, a is but and a good of We're category. we growth all is see But very lapping confident also strong the then good a together obviously, that to stay. what again, our

Stephen Robert Powers

Is much Yes, makes perfect itself we trigger to want on of cash towards of the that openness M&A, same the in how a that is there speak, how to balance opportunity about think to Is much? parameters Samy, about powder, think that's low? do And dry too for there time, too being to you the excessive? Is balance sense. waiting that it of at M&A is share? present in talked the shareholders. return return cash you level versus but itself of return? what's sheet And preserve continue a extent to terms present the a ratio way so there doesn't the capital to much to of cash around to kind about How the leverage proactive leaning versus

Samy Zekhout

Yes.

historically during a fairly as all we think through mean forward -- been return capital last a actively, we us I seen we've done from allocation expected we've guided that M&A. from on We've shareholder standpoint. perspective. Steve buyback have you mean good mean, using, And this frankly, I have year. I and focused move driving really I

altogether. are these we And dividend. guide looking at of our all clearly institutionalizing are We

on have to price. back and your algorithm activating first at fuel we contributing revenue know buyback, of going I balance looking number continue in cash volume we now between us And effectively growth, that to to dividend our effectively are will of for opportunity be are to proper levers that's fair a the that we the effective balance mean, and terms to stronger within further to a enable sure. to question be come spending that we and between

we that the the within stage, band, we very we do I maintain what from which to that, effectively presentation, leverage have make can X.Xx which sure mean, this our the between is want would during band, operating and is maximum that use make at will within mentioned and to we target X.Xx our return the to our cash perspective. try to is range

having be mean, to the So said in on want clear, there. of dividend clearly we and I it's but I opportunities, mean, the buyback as we I map, have still mean area the very well

Stéfan Descheemaeker

Well, strong, points or just nothing without X is cash which free complementing as would you our flow, to know. everything, Samy, obviously, be extremely X possible

whole what also So I Then have quite frankly, that gives all opportunities different of think terms all that. frankly, you us been where dividends, gives disciplined on between been M&A the available. thing, our us it's in quite very opportunities are the the we've something see And to acquisitions successful. very integration, buybacks,

spectrum the available, is all have of but we very strong what So based very, flow. cash a on

Operator

the of Our Rob next Jefferies. from with Dickerson question line comes

Robert Dickerson

We is great little touched presentation. at on a last this a CAGNY, week bit which

the to X. you a X%, that historically, normalized opportunity conviction think X% there, in more with I another seems ongoing spoken kind that what category change lot then like a a to kind top and line reinvestment because we your target I was to of It history. there seems lot it's relative kind of think like just to there's Nomad occurring almost respect like of of overall digit of But wanted to time is of into cycle. And kind about X, give forthcoming at productivity single or and kind would frankly, phase also step of consider kind on growth to history. target to the I relative and of growth talk it kind low you've to not

X if we conviction bit over and seems faster lot think next little as a and just that growth know have. forward So more clearly I there's confidence the a as for That's years? going all

Stéfan Descheemaeker

right, way. you're And the Thank you, by Rob.

with I go decent think I'll start it's to top slightly line. the a

series the of elements. based on it's think I

see sustainable category, think is food frozen this convenient. I First to great develop category, more also can it's category we wishes. see healthy. that leaded starting is It's such is lie, people and the as really a that is which more It's by

takes all boxes. people starting to And quite it this. So are the frankly, see

helps that That's a first piece. So lot. the

piece years we obviously impact, we of, a see volume a to that after and part is, second say, well, of X can the volumes. The want of with lot position let's pricing recoup also lost

will Battle We best want don't all concept frankly. the selective. we volumes, have that very Win That's with well aware of be also to you're Must We the regain this quite why of. the margin. categories which best are

So of first. we're standpoint algorithm selective to to normal but the from that your And our be not yes, third on we're then top point. And is, last increasing A&P to back the going of to piece cost pipeline increasing years focused really the on role. were of of last reasons subdued were a lot we defensive. living. It bit our least, was tackle was X people trying also Obviously, innovation more

projects but going really we for and statutory that to best-in-class a a past more leader. absolutely time years, didn't that's in the we're probably really takes that of ambition you definitely, the something coming new the with an we obsession do enough in next have know the innovation create and years. do as to pipeline Now And

clear. increase think combination why pluses from these that's will minuses a I'll reason we go count definition, -- or to there and your make X%, by to XXX elements. of Rob. it By we can let's that's So But be the

Samy Zekhout

Stefan week big is flywheel. thing that may, well the took is fact is emphasize the I to as difference was that it like if -- the and we integrated the one I'd I Rob, last think

time, increasing of and of our price We it's of are better are another return. most and in mindset really the in The same working in a of QX. our the one, presence is one RGM combination together with store. the that level A&P strategy driving flywheel At working, clearly synchronized is part promo. of activating way we the proper in with is all

are the activating investments in that's we're focus, So that the have continue we that we making this evidence improvement element sure of what with we to going of it stepped-up us implemented exactly strong making with see is and which through to integration we're growth shows bottom the and all into and to enable effectively of line deliver parts together forward. frankly, top flywheel moving will enable now, going the the and together, us that that's productivity flow line board, the EPS across

Operator

[Operator Securities. the Our Instructions] Jon of with line comes from Tanwanteng next question CGS

Jonathan Tanwanteng

nice you're you could seeing if the see improvements quarter evolve QX. there. how through was the environment I address and and wondering you first competitive the Congrats then that in on for private Are a response to continue you competition? either side? private branded to price all, the from seeing any seen gap you And or strategy at label have new close the label last

Stéfan Descheemaeker

I think it's a great question, Jon.

I company think the has agreement remained on about same. our the

closed I as in which negotiations of the first we're with have was, think very pleased customers, a you to of know, bit most a drag QX.

us gradually our of So countries. that's helping to in a lot, going help some and it's

historical gap price wider which So is what private a than normal. label level, bit is still -- we

that. surgical instead we surprised in to let's going more why more So -- promotion of terms by down, we're of -- we're that's drastically, going not And say, intervention.

that with plus. the we've fish level example a real lot put and a revenue a last the Italy and We is week science learned We've the frankly, We've quite and of it's lot an results. growth in together great invested example, in mentioned we a management. see

So great it's investment. a

price the the gaps it's, think important, beyond managing gap. course, but just So I remain of

why on our highlighting is So of focus we a brand now really premium.

leader which a up done to ramping which obviously, couple category innovation, last spend, like that thing, we're our going So something is to is now in and the -- we term, a a ASP great that. what long that is answer haven't years. of the from more big obviously, And the we're know expected We us. label enough private

Jonathan Tanwanteng

guidance earlier, EPS I apologize Got capital don't it, the I it. but know the more missed if your balance allocation built mention what was it, it is And into did if you towards for I addressed And much weighted how year? this then included? you if is

Stéfan Descheemaeker

We that. mentioned of any have not

I mentioned, guidance. mean, I think in guidance, the the just provided we as

Samy Zekhout

XXXX in about million our Jon, $X CapEx. it's in

Operator

Securities. Mizuho a the is question Baumgartner next from with line follow-up Our John of

John Baumgartner

ask of to the Just you focus whittling of of at you wanted hear the to ago. question. changed that? of must-win did decide mentioned whittle? certain a went have years into to geographies categories, last how sort curious kind down curious, battles or your or years? relative about that. more I'm Stefan, How some to what I'm certain CAGNY, returns of And brands Is couple couple bigger brands and picture it a So over

you we as just really in the expansion cross-selling force are I of and about pursue not forward, brands also incremental resource that more because with opportunities you in about cross-selling leverage the related, have that where then going these required but And talked sales think distribution? all brands local I'm aren't live, new curious how categories. you geographic markets imagine and investment do the

Stéfan Descheemaeker

to of spend right a -- that the -- because well, it's on bit kind Must Win time is It's Battles. I love topic X more be I'll I which

remember, categories the started focus focused John, absolutely per the it that company XXXX behind is to on, was country. You key time we conclusion we where was gave the in not and

to focus, strategy what of we deciding did didn't the Battles. elevate It's by going we the so Win our And sales. going your And resources. go XXX% is necessarily you're about money with all to have Must because behind where to the you're way, exactly

actually, our as a that it gross selective. simple. like to and something it on obviously, much faster categories absolutely And X/X unsurprisingly, the around And innovation is share almost like than were the X%, or X the A&P grew basically focus of this decline, market to we idea to went offside rest, based I which rest activation our and margin We we result, very acceptable. on growth even And think money potential, sometimes received X/X decided make or in-store behind everything.

X/X at a XX%. became this years, few Unsurprisingly,

back which And are reallocate the to we're selective so to more to then basically we brightest best no, we're we money. going be -- why and Must where even behind that's Battles. and decided Win X, Square going the is And our

gross around to then we've on XX% deemphasize our and especially and terms focus profit decided Battles of so brightest, And best Win potential. really of in the margin then gross to Must

now. right So that's what doing we're

around represent our gross XX much of sales profit. XX% and of more and our as XX. out Just of of Battles there's more information, terms in around XX Win for and Must

bit a right now. what you doing the idea gives that we're So of

what you remain At the So we did again, more time, it's A&P. very investing with know, with we past, the we're more bite and same consequence in a the as but resource. logical bit

to So imagine brands A&P. really going we're increasing these top you that, And selected. are first, because, can on money receive of more we

So these that's a boost big categories. for

pollination second is about in which have our which The unique concept we frozen of something basically is piece foods.

all you countries XX different unique all range in products also the the time, all assortment unique across be about have We in And think countries, to countries. same have of we when Europe. at different these present we're

okay, combination this us see, So allows fine. to

a we -- fantastic of, And we chips have say, in We and fish have prove let's say, U.K. the in We and think can example, work -- for product consumers this. fantastic let's efficient France. think obviously, it

So with little money. very

X to years, XX like EUR the right We started X, shows A&P, presented million has X with moved the little in million very EUR way. and product quite which the obviously of frankly, from something ago. strength X years it

there the and example the things what we more. of So do, many that's are can best

in just fish we're So chips, focusing in this it to example of do it onset going to and work. demonstrated that people can the Switzerland, we're do areas on because going

qualify innovation very because what not, and a adjacent of, the so low about when And we let's and some country successful, very in or it we're countries think you it's testing risk move. we're that exists definitely with other sort I product taking that would is the can say,

say, of comes it's let's process, certain innovation normal. a So with, unavoidably unavoidable, failure, you level of remove the which

substantially this I with approach. rate reducing we failure this think

assortment And can of then fantastic shift And and extent countries. the see amazing lift it, an of this number can you we and what us. about think as for said, represent

Operator

Ladies and Descheemaeker for gentlemen, that I'll concludes to back question-and-answer turn session. Mr. final any the comments. our floor

Stéfan Descheemaeker

Thank very much, operator. you

team call. So that well deliver more has and we for I with agility growth. Nomad and the Foods nimbleness incredible participation X as your good a believe now good that you thank are momentum and years X enter today's was accelerated in to we year, shown XXXX last I'm pleased XXXX. even prepared on our to

you which, the to with long-term our Thank our revised among puts tier peers, much, attractive shareholders. positions very for deliver valuation growth ago food our us returns combined of very superior us top Our operator.

Operator

today's This you. Thank concludes conference call.

You you may your at time. for disconnect Thank your participation. this lines

Nomad Foods Limited (NOMD) 29 Feb 242023 Q4 Earnings call transcript