Nomad Foods (NOMD · NYSE)
King of the Freezer Aisle
Nomad is Europe's frozen food leader, owning Birds Eye, Findus and iglo. Its new experienced leadership team is cutting waste, reinvesting behind its brands and taking products into markets where Nomad has barely scratched the surface.
Bull case for Nomad Foods
Europe's Frozen Food Leader at the Intersection of Consumer Trends
Frozen food sits at the intersection of convenience, affordability and less food waste with Nomad Foods number one in 13 of 15 markets driven by iconic brands, scale and freezer-space positions that are difficult for rivals to replicate.
Cash Returns While the Recovery Builds
Strong cash generation funds a sizeable dividend and steady debt reduction while management pursues growth by taking existing brands and products into categories and markets where Nomad has room grow.
An Experienced Team Executing a Turnaround
A €200m productivity plan is designed to fund sharper pricing, stronger marketing and expansion into underused product categories. Executed by a team who have a history of successful turnarounds
Bear case for Nomad Foods
Volumes and Brand Strength Need Rebuilding
Past pricing decisions cost Nomad volume, distribution and share to private label, and the recovery has only just begun.
A Debt Load That’s Getting More Expensive
Around €2bn of net debt means higher refinancing costs take cash away from investment and shareholder returns
The Turnaround Has Several Moving Parts
Nomad must cut waste, rebuild competitiveness, improve marketing and successfully launch products into new markets at the same time