Nomad Foods Cuts FY EPS Guidance as Q2 Revenue Falls 3.1%
NOMD sits 21% above its 52-week low of $8.99 on elevated volume (2.8× avg).
Summary
Nomad Foods reported Q2 revenue of €724 million, down 3.1% year-over-year, with adjusted EPS down 2.5%. The decline was driven by a 5.9% drop in volume, partly offset by a 3.0% positive price-mix contribution. Adjusted gross margin improved 110 bps to 28.9%, but adjusted operating expenses rose 7.8% due to the rebuild of the employee performance incentive scheme. The company lowered its full-year 2026 adjusted EPS guidance to €1.38-€1.53 from €1.47-€1.62, citing higher interest expense from the recent €800 million debt refinancing. This follows the preliminary Q2 results released on July 20, which projected a 2.5-3.5% organic revenue decline; the final figure of 2.9% organic decline is within that range, but the EPS guidance cut is a new negative development. The stock trades at 6 times forward earnings, up from 5 times three months ago, reflecting some multiple expansion despite the weak results.
At the time of this announcement, NOMD was trading at $10.90 on NYSE in the Trade & Services sector, with a market capitalization of approximately $1.6B. The 52-week trading range was $8.99 to $15.91. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Reuters.