Nomad Foods Ltd (NOMD): Financial results for Q2 2026
Nomad Foods Ltd (NOMD) furnished an SEC Form 6-K — earnings release. Exhibit 99.1 Nomad Foods Reports Second Quarter 2026 Financial Results Pricing and productivity drove a positive Adjusted Gross Margin inflection Cash generation remains strong with Adjusted Free Cash Flow conversion higher year-on-year WOKING, England - August 13, 2026 - Nomad F
How this was made
The 30-second read
Why it matters
The earnings decline and lowered guidance suggest near-term weakness, but margin improvements may offer longer-term upside.
Market read
First‑report earnings release with revised guidance; primary relevance for traders holding or considering NOMD.
What to watch
Potential upside from upcoming product innovations and supply chain efficiencies not fully reflected in the release.
Pricing and productivity drove a positive Adjusted Gross Margin inflection Cash generation remains strong with Adjusted Free Cash Flow conversion higher year-on-year
Second-quarter revenue, organic revenue, volume, reported profit, Adjusted EBITDA and EPS declined year-on-year, while price-mix, pricing and supply chain productivity expanded adjusted gross margin. The company maintained its organic revenue, Adjusted EBITDA and Adjusted Free Cash Flow conversion outlook but lowered Adjusted EPS guidance because of higher interest expense and higher variable interest rates.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Revenueother | €723.7 million | – | (3.1) % |
| Organic Revenue Growth/(Decline)non-GAAP | (2.9) % | – | (2.9) % |
| Volume declinenon-GAAP | 5.9% | – | – |
| Price-mix contributionnon-GAAP | 3.0% | – | – |
| Gross profitother | €209.2 million | – | – |
| Gross margin increaseother | 130 bps | – | – |
| Adjusted gross profitnon-GAAP | €209.2 million | – | 0.7% |
| Adjusted gross marginnon-GAAP | 28.9% | – | 110 basis points |
| Other operating expensesother | €107.6 million | – | – |
| Adjusted operating expensesnon-GAAP | €111.4 million | – | 7.8% |
| Operating profitother | €88.6 million | – | – |
| Profit for the periodother | €48.5 million | – | 15% |
| Adjusted Profit for the periodnon-GAAP | €55.3 million | – | 9% |
| Basic earnings per shareother | €0.35 | – | – |
| Diluted earnings per shareother | €0.35 | – | 5.0% |
| Adjusted diluted earnings per sharenon-GAAP | €0.39 | – | 2.5% |
| Adjusted EBITDAnon-GAAP | €123.7 million | – | 4.3% |
| Adjusted EBITDA marginnon-GAAP | 17.1 % | – | – |
| Six-month Revenueother | €1,438.9 million | – | (4.5) % |
| Six-month Organic Revenue Growth/(Decline)non-GAAP | (4.1) % | – | (4.1) % |
| Six-month Adjusted gross profitnon-GAAP | €392.8 million | – | 6.3% |
| Six-month Adjusted gross marginnon-GAAP | 27.3% | – | 50 basis points |
| Six-month Adjusted operating expensesnon-GAAP | €226.7 million | – | 3.6% |
| Six-month Operating profitother | €145.3 million | – | – |
| Six-month Profit for the periodother | €77.4 million | – | – |
| Six-month Adjusted Profit for the periodnon-GAAP | €87.6 million | – | 23.2% |
| Six-month Diluted earnings per shareother | €0.55 | – | – |
| Six-month Adjusted diluted earnings per sharenon-GAAP | €0.62 | – | €0.12 |
| Six-month Adjusted EBITDAnon-GAAP | €216.3 million | – | 13.3% |
| Six-month Adjusted EBITDA marginnon-GAAP | 15.0 % | – | – |
full year 2026 outlook
- Revenueorganic revenue to decline by 2%-5%
- NoteAdjusted EBITDA to decline by 5%-10%
- NoteAdjusted EPS is now expected to be €1.38-€1.53
- NoteBased on USD/EUR exchange rate as of August 6, 2026, this translates into 2026 Adjusted EPS of $1.59-$1.76
- Notefull year Adjusted Free Cash Flow conversion of 90% or greater
Capital returns
- Repurchase of ordinary shares: €23.7 million for the six months ended June 30, 2026
- Dividends paid: €40.9 million for the six months ended June 30, 2026
- Payments related to shares withheld for taxes: €0.4 million for the six months ended June 30, 2026
What drove it
- Organic revenue declined 2.9%, driven by a volume decline of 5.9% partly offset with an improvement in price-mix of 3.0%.
- Adjusted gross margin increased 110 basis points to 28.9% due to positive price contribution and continued supply chain productivity.
- Adjusted operating expenses increased 7.8% due to the rebuild of the company's employee performance incentive scheme.
- Management cited secured price increases, restored momentum with key retail partners, and focus on innovation, renovation and commercial excellence.
Concerns
- Volume declined 5.9% in the second quarter.
- Reported Revenue decreased 3.1% and Organic Revenue Growth/(Decline) was (2.9) % in the second quarter.
- Adjusted EBITDA decreased 4.3% and Adjusted Profit for the period decreased 9% in the second quarter.
- Adjusted EPS guidance was reduced due to higher interest expense associated with the Company's recently completed refinancing activity and higher variable interest rates.
- For the first six months, adjusted gross margin decreased 50 basis points to 27.3% due to supply chain inflation headwinds, partially offset by pricing and supply chain productivity.
What to watch
- The pace of volume performance following the stated restoration of momentum with key retail partners.
- Delivery against full-year organic revenue guidance of a decline by 2%-5%.
- Whether pricing and supply chain productivity continue to support adjusted gross margin.
- The effect of refinancing-related interest expense and higher variable interest rates on Adjusted EPS.
- Delivery of full-year Adjusted Free Cash Flow conversion of 90% or greater.
Balance sheet and cash flow
- Cash and cash equivalents: €273.4 million as at June 30, 2026; €324.8 million as at December 31, 2025
- Loans and borrowings, current: €33.7 million as at June 30, 2026; €32.6 million as at December 31, 2025
- Loans and borrowings, non-current: €2,278.3 million as at June 30, 2026; €2,258.6 million as at December 31, 2025
- Net cash generated from operating activities: €119.7 million for the six months ended June 30, 2026; €120.2 million for the six months ended June 30, 2025
- Purchase of property, plant and equipment and intangibles: €37.4 million for the six months ended June 30, 2026; €37.1 million for the six months ended June 30, 2025
- Interest paid: €48.7 million for the six months ended June 30, 2026; €51.6 million for the six months ended June 30, 2025
- Payment of lease liabilities: €17.6 million for the six months ended June 30, 2026; €17.0 million for the six months ended June 30, 2025
- Net decrease in cash and cash equivalents: €47.5 million for the six months ended June 30, 2026; €138.8 million for the six months ended June 30, 2025
Analysis
Nomad Foods reported a weaker top line in the second quarter, with Revenue of €723.7 million versus €746.9 million and Organic Revenue Growth/(Decline) of (2.9) %. Volume declined 5.9%, while price-mix contributed 3.0%. The first six months showed a similar pattern, with Revenue of €1,438.9 million and Organic Revenue Growth/(Decline) of (4.1) %.
Pricing and productivity improved the second-quarter gross-profit outcome. Adjusted gross profit increased 0.7% to €209.2 million and adjusted gross margin increased 110 basis points to 28.9%, attributed to positive price contribution and continued supply chain productivity. This was a marked improvement from the first six months, when adjusted gross profit decreased 6.3% to €392.8 million and adjusted gross margin decreased 50 basis points to 27.3% amid supply chain inflation headwinds.
Profitability below gross profit remained under pressure. Adjusted operating expenses increased 7.8% to €111.4 million because of the rebuild of the employee performance incentive scheme. Adjusted EBITDA decreased 4.3% to €123.7 million, and Adjusted Profit for the period decreased 9% to €55.3 million. Reported Profit for the period declined to €48.5 million from €57.1 million. The reported diluted earnings per share was €0.35 and Adjusted diluted earnings per share was €0.39, with fewer shares outstanding partly offsetting the decline in Adjusted Profit for the period.
Cash generation remained broadly stable in the six-month cash flow statement. Net cash generated from operating activities was €119.7 million, compared with €120.2 million, while purchases of property, plant and equipment and intangibles were €37.4 million. The company repurchased €23.7 million of ordinary shares and paid €40.9 million of dividends. Cash and cash equivalents were €273.4 million as at June 30, 2026, while non-current loans and borrowings were €2,278.3 million.
The company maintained full-year expectations for organic revenue to decline by 2%-5%, Adjusted EBITDA to decline by 5%-10%, and Adjusted Free Cash Flow conversion of 90% or greater. It reduced Adjusted EPS guidance to €1.38-€1.53 from €1.47-€1.62, citing higher interest expense associated with recently completed refinancing activity and higher variable interest rates. The reported period therefore shows gross-margin recovery and stable operating cash generation, but continued volume weakness and lower earnings expectations.
Management, verbatim
The second quarter marked an important step forward for Nomad Foods. We secured our price increase, expanded gross margins, restored momentum with key retail partners, and continued to strengthen our organization.
Dominic Brisby, Chief Executive Officer of Nomad Foods
The Board is encouraged by the progress made during the quarter as Nomad Foods continues to strengthen its foundation and advance its strategic priorities.
Noam Gottesman, Co-Chairman and Founder of Nomad Foods
Not in the filing
stated, not guessed- Segment revenue, segment growth rates and segment drivers were not reported.
- Quarterly operating cash flow, quarterly capital expenditure, quarterly free cash flow and quarterly Adjusted Free Cash Flow were not reported.
- Actual Adjusted Free Cash Flow conversion for the quarter or first six months was not reported.
- GAAP gross-margin percentage, GAAP operating-margin percentage and tax-rate percentage were not reported.
- Prior-quarter comparisons for reported and adjusted operating metrics were not reported.
- Full-year gross margin, operating expenses and tax rate guidance were not reported.
- A previous earnings release outlook section was not provided, so no actual-versus-prior-guidance comparison is included.
- Dividend per share, repurchase authorization and remaining repurchase capacity were not reported.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Nomad Foods is Europe's leading frozen food company, listed on NYSE under ticker NOMD.
Ticker impact
Nomad Foods reported Q2 2026 results with revenue down 3.1% and adjusted EPS of $0.39, plus lowered full-year EPS guidance.
Potential downside of 3-5% over the next few days.
Revenue decline, profit contraction, and reduced EPS guidance signal weaker performance, likely prompting sell pressure.
Market effects
Indicates pressure on the frozen foods sector and broader consumer staples in Europe.
May weigh on European consumer discretionary stocks.
Limited, primarily affecting investors with exposure to NOMD and European food retailers.
Counterpoint
Despite the miss, the company's price-mix improvements and margin expansion could support a rebound if cost pressures ease.
Key entities
- ExecutiveDominic Brisby
Chief Executive Officer of Nomad Foods.
- ExecutiveNoam Gottesman
Co‑Chairman and Founder of Nomad Foods.
