Skip to content
    NOMD
    Earnings call· Jun 2026(Q2 FY26)

    Nomad Foods Q2 FY26 earnings call NOMD

    Aug 13, 2026 Source

    Executive summary

    Nomad Foods Q2 FY26 — Operational Progress and Foundation Rebuilding

    Nomad Foods made significant operational progress in Q2 FY26, resolving key commercial disruptions and strengthening its leadership. While organic revenue and market share declined due to past issues, pricing and productivity initiatives drove gross margin expansion and strong cash generation. The company is focused on rebuilding its foundation and will unveil a multi-year value creation plan at its upcoming Analyst Day.

    Highlights

    5

    • Organic revenue growth saw a positive inflection from price/mix, contributing 3% in Q2 FY26.

    • Adjusted gross margin improved by 110 basis points year-over-year in Q2 FY26.

    • Productivity initiatives offset over 60% of inflation year-to-date, on track for EUR 200 million savings target.

    • Adjusted free cash flow conversion improved to 49% in H1 FY26 from 43% in prior year.

    • The frozen food category grew 3.4% in value and 1.6% in volume year-to-date.

    Concerns

    5

    • Organic revenue declined 2.9% in Q2 FY26, with volume down 5.9%, primarily due to retailer disruptions.

    • Value and volume market share declined 90 and 75 basis points, respectively, in the most recent 12-week period.

    • Adjusted EBITDA declined 4.3% in Q2 FY26.

    • Adjusted EPS declined to EUR 0.39 in Q2 FY26 from EUR 0.40 in the prior year period.

    • Full-year FY26 adjusted EPS guidance was revised down to EUR 1.38-EUR 1.53 from EUR 1.47-EUR 1.62 due to higher interest expense.

    Guidance & targets

    5
    CategoryTargetConfidence
    Full-year FY26 Organic revenue
    decline between 2% and 5%
    high materiality
    High
    Full-year FY26 Constant currency adjusted EBITDA
    decline between 5% and 10%
    high materiality
    High
    Full-year FY26 Adjusted EPS
    EUR 1.38 to EUR 1.53
    high materiality
    High
    Full-year FY26 Inflation outlook
    mid-single-digit range, towards the higher end
    medium materiality
    Medium
    Productivity program cost savings target
    EUR 200 million
    medium materiality
    High

    Operational metrics

    22
    Volume growth
    5.9%declined
    Q2 FY26

    Volume declined 5.9%, primarily reflecting the retailer disruptions.

    Productivity savings
    60%offset more than
    YTD FY26

    Year-to-date productivity initiatives have offset more than 60% of inflation.

    Advertising and promotion spending
    unchanged
    Q2 FY26

    Advertising and promotion spending was essentially unchanged year-on-year.

    Indirect expenses
    EUR 8M
    Q2 FY26

    indirect expenses increased by just over EUR 8 million, mostly due to normalization of incentive compensation.

    Adjusted EBITDA
    4.3%declined
    Q2 FY26

    Adjusted EBITDA declined 4.3% in the quarter.

    Free cash flow conversion ratio
    49%improved from 43%
    H1 FY26

    Our adjusted free cash flow conversion ratio improved to 49% in the first half of the year compared to 43% in the prior year period.

    Dividend payments
    EUR 20M
    Q2 FY26

    Our strong cash generation supported EUR 20 million of dividend payments during the quarter.

    Year-to-date dividend payments
    EUR 41M
    YTD FY26

    bringing year-to-date dividends paid to EUR 41 million.

    Quarterly dividend per share
    $0.17
    Q2 FY26

    Board has also declared a quarterly dividend of $0.17 per share payable on August 27.

    Share repurchases
    suspended
    Q2 FY26

    During the quarter, we suspended share repurchases and shifted our capital allocation priority towards reducing net debt and leverage.

    Frozen food category value growth
    2.9%increased
    most recent 12-week period

    Retail value sales for our category increased 2.9% during the most recent 12-week period.

    Frozen food category volume growth
    1.2%growth
    most recent 12-week period

    with volume growth of 1.2%.

    Frozen food category value growth
    3.4%growth
    YTD FY26

    year-to-date value growth reached 3.4%.

    Frozen food category volume growth
    1.6%growth
    YTD FY26

    and volume growth 1.6%.

    Frozen fish and vegetables category growth
    3%growing
    YTD FY26

    Frozen fish and vegetables are growing roughly 3% year-to-date across our footprint.

    Meals and poultry category growth
    7%grown
    YTD FY26

    while meals and poultry have grown approximately 7%.

    Pizza category growth
    5%grown
    YTD FY26

    and pizza 5%.

    Value share decline
    90declined
    most recent 12-week period

    our value and volume share declined 90 and 75 basis points, respectively.

    Volume share decline
    75declined
    most recent 12-week period

    our value and volume share declined 90 and 75 basis points, respectively.

    Retail value sell-out
    3.2%decreased
    most recent 12-week period

    while retail value sell-out decreased 3.2%.

    Product superiority
    60%closer to
    FY26

    Our product superiority was approximately 40% in 2023 and it's now closer to 60%.

    Innovation as % of net sales
    6%up from 4%
    FY26

    our innovation moved from approximately 4% of net sales in '23 to 6% this year.

    Industry KPIs

    7
    MetricValueDetails
    Gross margin110bps
    Organic net revenue growth2.9%%
    Adjusted EPS operating incomeEUR 0.39EUR
    Retailer trade negotiation statusfully resolved
    Volume mix vs pricing decomposition3%%
    Elasticity consumer response commentarytoo early to draw any meaningful conclusion
    Category growth benchmark channel shift data3.4%%

    Product announcements

    6
    ProductTypeDetails
    Fish fingersexpansion
    High-protein spinach productslaunch
    Expanded chicken offeringsexpansion
    New seafood and meal innovationslaunch
    Ice cream portfolioexpansion
    Pizza portfolioexpansion

    Capital programs

    1
    Productivity programon trackEUR 200M
    Spent to date: offset more than 60% of inflation year-to-date

    Benefit: cost savings

    Productivity programs continued to offset a significant portion of input cost inflation as we advance towards our EUR 200 million 3-year cost savings target. Year-to-date productivity initiatives have offset more than 60% of inflation.

    Risks & headwinds

    4
    Retailer disputes/disruptionsearlier this year

    significant headwind to both revenue and earnings

    Mitigation: largely resolved by quarter end; shelves replenished, promotional plans restored.

    Consumer elasticity following pricing actionsnear-term

    some near-term elasticity pressure

    Mitigation: competitors responding to pricing, allowing for competitive pricing strategy.

    InflationFY26

    mid-single-digit range, towards the higher end of that range

    Mitigation: address through pricing; confident in securing incremental pricing needed; hedge coverage lower in Q4.

    Higher interest expenseFY26

    EUR 0.09-EUR 0.15 impact on EPS (implied from guidance change)

    Mitigation: offset through continued debt reduction and lower leverage over time.

    What to watch in Q3 FY26

    4

    Market share trends

    Q3 FY26
    Currentdeclined 90 and 75 bps (value/volume) in most recent 12-week period
    Targetimproved performance, moving towards neutrality

    Why it matters

    Market share recovery is crucial for demonstrating the effectiveness of resolved retailer disputes and new commercial strategies.

    We expect to deliver better sales and market share performance in the third and fourth quarter, but it's probably going to take more time to get back to market share neutrality.

    Q&A highlights

    6

    When can Nomad Foods expect to achieve market share neutrality, given resolved retail disruptions and competitor pricing actions?

    Management expects improved performance in H2 FY26, but achieving market share neutrality will take more time. They see no structural barriers and have compelling plans to be shared at the Analyst Day.

    “We expect to deliver better sales and market share performance in the third and fourth quarter, but it's probably going to take more time to get back to market share neutrality. I don't, however, see any reason that we cannot get there over time.”

    asked by Andrew Lazar · answered by Dominic Brisby

    2 min read6 chapters

    Detailed Narrative

    01

    Retailer Disruptions Resolution

    The company successfully resolved significant retailer disputes in Germany and France that had negatively impacted revenue and earnings earlier in the year. These issues, which caused out-of-stocks and reduced promotional activity, were largely behind them by quarter-end, with shelves replenished and promotional plans resuming. Management expects recovery to continue through H2 FY26.

    02

    Organizational Strengthening

    Nomad Foods finalized executive team appointments, with half of the direct leadership team being new, bringing fresh perspectives and industry expertise. A restructuring of the marketing organization was completed, streamlining operations, reducing non-working A&P spend, and shifting accountability closer to local markets to better deploy resources behind consumers and growth opportunities.

    03

    Frozen Food Category Strength

    The frozen food category in Europe continues to demonstrate robust health, with retail value sales increasing 2.9% during the most recent 12-week period and 3.4% year-to-date, and volume growth of 1.2% and 1.6% respectively. Growth was broad-based across categories like frozen fish, vegetables, meals, poultry, and pizza, and across major markets including the U.K., Italy, and Germany.

    04

    Innovation and Renovation Focus

    The company is increasing investments in renovation and innovation. Examples include upgrading the coating on fish fingers for a crunchier product, and a robust pipeline of new products such as high-protein spinach in Germany, expanded chicken offerings in the U.K., new seafood and meal innovations, and pizza portfolio expansion. This reflects a shift towards stronger consumer relevance and a growth-oriented mindset.

    05

    Capital Structure Refinancing

    Nomad Foods refinanced EUR 800 million of notes in July through new long-term dated debt. This transaction was leverage-neutral, extended the maturity profile, and increased the revolver credit facility, resulting in no meaningful debt due until 2032. The company suspended share repurchases to prioritize debt reduction and lower interest expense.

    06

    Value Creation Plan

    A comprehensive multi-year value creation plan has been developed, leveraging iconic brands, a pan-European supply chain, deep customer relationships, and commercial capabilities. This plan aims to drive growth across categories, channels, geographies, and consumers, and will be presented at the Analyst and Investor Day in October.

    AI-generated summary of the company’s earnings call. Not investment advice.