Nomad Foods (NYSE:NOMD) reported third-quarter 2026 revenue growth as retail sell-out returned to positive territory and volume trends stabilized, while adjusted EBITDA declined modestly amid inflation and the restoration of incentive compensation expenses.
Revenue rose 2.3% year over year to EUR 717 million, including 1.6% organic growth and a 0.7% contribution from foreign-currency translation, Chief Financial Officer Ruben Baldew said. Price and mix increased 1.8%, while volumes were nearly flat, declining 0.2% from the prior-year quarter.
Chief Executive Officer Dominic Brisby said the quarter marked “an important step forward” as the company worked to restore growth, improve cash generation and strengthen its competitive position. Nomad Foods’ retail sell-out increased by roughly 1% year over year, and market-share trends improved across its portfolio, according to Brisby.
Profitability pressured by compensation and inflation
Adjusted EBITDA declined 1.5% to EUR 141 million during the quarter. Baldew said the rebuilding of incentive compensation represented a mid-single-digit headwind to adjusted EBITDA growth. Excluding that factor, adjusted EBITDA grew at a low-single-digit rate for the second consecutive quarter.
Adjusted gross profit fell 1.7% year over year. Management said results were affected by both the incentive compensation rebuild and the reversal of timing benefits that had supported the previous quarter. Excluding those two items, adjusted gross profit increased at a low-single-digit rate.
Inflation reached approximately 5% of cost of goods sold in the quarter, up from levels seen during the first half of the year, with fish representing a particular area of pressure. The company said productivity savings exceeded 3% of cost of goods sold, helping offset higher costs.
Baldew said Nomad Foods is pursuing a combination of disciplined pricing and productivity programs rather than relying exclusively on price increases to manage inflation. The approach is intended to protect profitability while maintaining competitive pricing gaps with rivals.
Total operating expenses were broadly unchanged from the prior year. Excluding the incentive compensation rebuild, overhead expenses declined as cost-savings programs took effect. Advertising and promotion spending also declined, although the company said it continued to direct working media toward campaigns with stronger consumer propositions.
Fish renovation and cost actions
Brisby highlighted the company’s renovated fish portfolio as an example of its innovation and renovation strategy. Nomad Foods combined product improvements with a pan-European marketing campaign, which management said improved advertising efficiency and helped support fish retail sales during the quarter.
The company cited its “crunchiest Fish Finger ever” campaign, along with more competitive price gaps, as contributors to improved fish sales and market share. Baldew said the company reduced non-working media costs, with media agency fees down in the mid-teens both during the quarter and year to date.
Subsequent to the quarter’s end, Nomad Foods announced plans to close its Irida fish manufacturing site in Croatia. The facility is scheduled to cease operations at the end of 2026. Brisby said the closure is part of efforts to simplify the organization and generate cost savings.
Cash flow improves and debt is reduced
Year-to-date adjusted free cash flow increased 22% to EUR 80 million. Exceptional cash expenditures fell 40% to EUR 28.8 million, compared with EUR 49.4 million in the prior-year period.
Non-adjusted free cash flow rose to EUR 51.3 million from EUR 17.2 million a year earlier, supporting a higher cash balance. In October, after the quarter ended, the company used cash on hand to repay EUR 100 million of its term loan.
Baldew said the repayment is expected to produce annualized interest savings of EUR 3 million. The company said it intends to maintain its dividend while reducing leverage and strengthening its balance sheet.
Guidance reiterated despite difficult fourth-quarter comparison
Nomad Foods reiterated its 2026 outlook. The company continues to expect:
- Organic revenue to decline 2% to 3% for the full year.
- Adjusted EBITDA to decline 5% to 10%, including up to a mid-single-digit headwind from restored incentive compensation.
- Adjusted earnings per share of EUR 1.38 to EUR 1.52.
- Adjusted free-cash-flow conversion of more than 90%.
Management said the full-year outlook reflects a weaker first half and a difficult fourth-quarter comparison, as customers bought ahead of early-2026 price increases in the prior-year period. The company also expects additional inflation in fish before the benefits of its next pricing actions become meaningful in 2027.
For 2027, Nomad Foods reiterated targets for organic revenue growth of 0% to 2%, adjusted EBITDA growth of 0% to 2%, and adjusted free-cash-flow conversion of at least 90%. Baldew characterized those targets as a measured recovery rather than an extrapolation of the third-quarter improvement.
Brisby said the company remains focused on rebuilding sustainable core growth, improving absolute profitability through productivity, expanding cash generation, reducing leverage and pursuing longer-term opportunities in adjacent channels, categories and geographies.
About Nomad Foods (NYSE:NOMD)
Nomad Foods is a frozen-food company focused on the European market. The company sells branded frozen meals and ingredients, including frozen fish, vegetables, poultry, potato products, pizza and plant-based foods. Its products are distributed through grocery retailers and other food channels across multiple European countries.
Nomad Foods’ portfolio includes well-known brands such as Birds Eye, Findus, iglo, Goodfella’s, Aunt Bessie’s and Green Cuisine. The brands offer products ranging from fish fingers, frozen vegetables and ready meals to frozen pizza, potato specialties and meat-free alternatives.
The company was formed in 2014 following the acquisition of the Iglo Group and expanded through subsequent acquisitions, including Findus operations in several European markets, Goodfella’s in 2018 and Aunt Bessie’s in 2020.
