Nomad Foods outlines £133m sales potential of Goodfella’s
Nomad Foods announced its intent to acquire Goodfella’s from Boparan Holdings, 2 Sisters Food Group’s parent company, in January in a deal worth £199m. Nomad said it expected the deal to close during the second quarter of 2018.
Reporting on full-year results, Nomad said it expected the acquisition to deliver €150m (£132.8m) in sales within two years of closing the deal. It would also generate €22m–€25m (£19.4m–£22.1m) in adjusted profit before interest, taxes and the depreciation of tangible and intangible assets (EBITDA), Nomad said.
Full-year results
Birds Eye owner Nomad Foods boosted sales by €23m in the last three months of 2017 to €508m (£443.2m) year-on-year, it reported in its full-year financial results.
The frozen fish firm grew sales by 1.5% to €1.9bn (£1.7bn) in the year ending 31 December 2017, while organic revenue grew by 3.9%. Nomad’s gross profit increased 5% to €599m (£522m), as the cost of sales grew slightly.
Adjusted EBITDA came to €82m (£71.5m) for the last three months of 2017, up 31% compared with the same period in 2016. EBITDA for the full year was up 1% to €328m (£286m).
‘Exceeded expectations’
Stéfan Descheemaeker, Nomad Foods’ chief executive, said: “[Last year] was an outstanding year for our company. These results – which exceeded the expectations we set at the start of the year – are a testament to the power of our iconic brands, a proven strategy and relentless execution.
“We enter 2018 in a position of strength. Goodfella’s Pizza, once closed, will provide a complementary source of growth to our base business and illustrate the power of our value creation model.”
The acquisition of the frozen pizza business within Green Isle Foods included the San Marco brand and two frozen pizza manufacturing facilities, as well as the ongoing supply of own-label frozen pizza contracts to UK and Irish retailers.
Commenting on the report, Nomad’s co-chairman and founder Noam Gottesman added: “These results further validate the strategy that we have been executing against for the past two years.
“The combination of base business momentum, strong cash flow generation and accretive capital deployment positions us to drive continued shareholder value in 2018.”
