Its annual report and financial statements for the year ended 31 December 2018 revealed that revenues for 2017 increased by 2% from -3.9% in 2016. Profit before tax hit £17.1m up from £15.8m in 2016.
The directors’ report said advertising and promotional spend combined with improving quality of products and the strengthening of the brand were “the foundations of the turnaround in performance”.
However, in the report it also added that the “challenging conditions” in the grocery market, driven by the growth of discounters and own-label was intensified by the raw material cost inflation that led to price increases in the market.
‘Relevant and competitive’
“The outlook for 2018 will remain challenging, however with the company in turnaround, communication of the quality products, the strengthening brand, and focus on balancing the needs of the consumer, customer and company, the company will be able to remain relevant and competitive,” it said.
Birds Eye also said that Brexit had created both political and economic “uncertainty” in the UK.
“A deterioration in economic conditions could result in increased unemployment rates, a decline in strength of national and local economies and other results that negatively impact household incomes,” it said.
Aunt Bessie’s acquisition
Earlier this year, Nomad Foods acquired frozen food brand Aunt Bessie’s for £210m. At the time, Nomad said the deal gave the Birds Eye brand the opportunity to expand into the roast dinner meal occasion.
It said it planned to continue to drive growth in the frozen food category by offering categories and occasions that complemented the existing Birds Eye portfolio.