Nomad Foods Limited Q3 FY2025 earnings call

• EUR 200 million multiyear efficiency target stands and is actively being worked on. • Medium-term goals to compound EBITDA in low single digits continue. • Accelerating free cash flow growth by delivering EBITDA and reducing exceptional items. • Pricing dynamics: Private label price lag, but cost competitiveness program and RGM capabilities are factors. • Cost competitiveness program: Vast majority in supply chain and overheads, with savings seen in functional support areas and factory footprint adjustments. • Capital allocation: Emphasis on supporting dividend and prioritizing share repurchases, with extra cash from refinancing to be used for buybacks.

• Expect results to be better in 2026 than 2025. • Implied guidance for Q4 2025 top line is between minus 1.5% and minus 2%. • Confidence in hitting guidance due to product quality improvements in the U.K. and other initiatives.

• Potential market share weakness due to pricing lag. • Competition impact on pricing. • Weather effects on sales. • Uncertainty of new CEO's full impact on initiatives.

Q: Whether Nomad still stands by recent medium-term commitments after CEO change?

A: Stefan Descheemaeker stated commitments like EUR 200 million efficiency target, medium-term EBITDA goals, and free cash flow growth remain in place, with new CEO seen as positive.

Q: How Nomad is balancing pricing and keeping share momentum?

A: Ruben Baldew mentioned price index vs competition, cost competitiveness program, surgical pricing, and linking pricing with renovation.

Q: How to think about 2026 preliminarily in terms of initiative cadence?

A: Ruben Baldew said program is endorsed by board, focus on top line recovery, but concrete details with new CEO are early.

Q: Reasons for Q4 guide and risks/upside?

A: Ruben Baldew discussed sell-out trends, product quality improvements in U.K., and factors like pricing and competition affecting guide.

Q: Competitive aspects of private label beyond price?

A: Jason English mentioned renovation of products like pizza, fish fingers, and peas, focusing on non-price value equation.

Q: Decision to keep majority repricing to next year and cost savings netting?

A: Stéfan Descheemaeker explained commercial decision not to reopen negotiations this year, Ruben Baldew discussed $200 million program and how savings are allocated.

Q: Downside protection and capital allocation?

A: Martin E. Franklin stated intention to continue share repurchases with extra cash from refinancing.