Nomad Foods: Margin Expansion & Cost Control Driving Our ‘Outperform’ Rating! 

Nomad Foods delivered a mixed set of results for the third quarter of 2024. Despite some operational challenges, particularly related to their ERP implementation, there were both positive and negative aspects to consider when evaluating the company’s investment potential. On the positive side, the quarter marked Nomad Foods’ ninth consecutive quarter of organic sales growth and second consecutive quarter of volume growth. This indicates a continued demand for their products and reflects effective business strategies. The company experienced a significant gross margin increase of 390 basis points year-over-year, reaching a record quarterly high of 32.3%. This improvement was attributed to favorable price net of cost benefits, mixed tailwinds, and productivity gains.