Nomad Foods, owners of frozen food brand Birds eye, has reported “strong” sales growth in the third quarter after raising its prices by 10% to offset rapidly increasing input costs.
Profit for the frozen food manufacturer jumped 26.7% to £668.4m in the period with sales help from the European frozen food business Fortenova, that were acquired by the group last year.
Price increases also contributed to an increase in gross margins by 29.1%, offsetting higher raw material costs across the business.
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The company’s adjusted EBITDA rose 35.3% to £131.9m, with adjusted profits up 42.6% to £79.2m.
Nomad, which owns Aunt Bessie’s and Goodfella’s in the UK, as well as Findus, Iglo and other brands in Europe, also announced a refinancing of its debt facilities in order to better control costs.
“Nomad Foods reported another quarter of strong results boosted by our great brands, efficient supply chain and world-class people,” co-chairman and founder Noam Gottesman said.
He added that Nomad has proven to be a resilient business, saying: “Disciplined procurement and supply chain management provided high-quality products with improved service levels and strong margins.”
Gottesman also said: “We will maintain our focus on accelerating sustainable growth while compounding the value of our results for shareholders. We expect to keep this momentum into 2023 and beyond.”
The news comes as Birds Eye owner Nomad Foods has secured new contracts to increase its supply of sustainable Aquaculture Stewardship Council (ASC) certified fish from 2023.
