Nomad Foods Limited (NOMD) 26 Feb 222021 Q4 Earnings call transcript

Greetings, and welcome to Nomad Foods Fourth Quarter and Full Year 2021 Earnings Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Seamus Murphy, Group Finance Director. you. Thank

begin. may You

and to Seamus Foods and Murphy, call Stefan on welcome Zekhout. Earnings I'm Quarter Call. the Descheemaeker; CEO, our I'm Group by CFO, the and Samy Fourth Nomad XXXX joined our Hello Finance Director

due like I of our the are of SEC this draw your to This based statements the that conference expectations disclosed investor call at on Actual slide language. time. cautionary which release, may Before disclaimer differ in includes would and attention intentions are risks and slide view in our on company's we results prospects, uncertainties, to begin, forward-looking filings and our two presentation. our to press our may which with include presentation, the this

numbers. from for payment on All as represents that XXXX Stefan. items, XXXX. for this that here to been gains or discuss will adjusted results. With the non-IFRS during the available also can FX adjusted will of appendices and exceptional call be non-cash I noted, and a at measures the IFRS financial website. the measures share-based adjusted end IFRS financial comments non-IFRS certain will figures otherwise release be within presentation presentation adjusted replacement acquisition-related, non-IFRS our Users Please the related These should all and expenses have with reconsidered on hand note, well our in for financial not slide over earnings should reconciliations and find within our information to figures together as those Unless today. to losses. read refer We

business of series prioritized great the EPS. results the of XXXX of a for of process We're and business fourth control team all and year brands. year achievement adjusted marking for the our call areas end with today. our and our our our year to model Thank you, pleased and prior is guidance Seamus adjusted throughout have and we we resilience our of and market the you This EBITDA consecutive could a specifically line overcoming consumer face sharpen high range to we proposition investments. on a while full joining through attention challenges macro fifth quarter improvements growth the strength the the revenue, of backdrop, the report in us for thank of where our the and targeted most a volatile supply reinforcing strengthening the In chain on

the like with reported I'd beginning a strong lower XXXX X% our with that, footprint our in our CAGR and key market XXXX of as debt Adriatic to and We also recap by refinancing. to metrics, successful to continued billion, which through basis. This the With €X.X the against declined expanded in of compare X.X%, portfolio brand revenues navigated capital cost significant on two-year were was through guidance year and we results organic opportunity took region. volatile of integration which Full compared and development with XXXX our line materially and revenues of the increased growth financial X.X% the two concurrent the a XXXX. acquisitions, high European acquisition to

an XX% in gross in representing basis, it's points XXX loss We share, XXXX. strong organic consolidated Business XXXX X.X% for per CAGR guidance. two-year was two-year the and a the €X.XX on well which a growth to XXXX, in basis promotion was Fortenova's year approximately Adjusted from the material second of worth to from on EBITDA exceptionally frozen compared year great the end EPS reflecting quarter basis. of included of last Frozen the reopened €XXX demand two-year food This of growth normalizing and delivered year half volatility XXXX year-on-year, normalize, of year demand is impact as to some raw saw of top versus the fourth cases of which and compared CAGR through our of €X.XX a utilities we X% as seasonal a as noting cater margin our performance million, we a consumer and parts year wins line and lower Importantly, adjusted X% consumer of activity. revenues in the other adjusted faster as with inflation, full XX.X%, than represents After began Food last acquisitions, Europe increased XX%. world. finally, And robust in

food category in However, frozen continue Green of while shift to NPD our and strategy At as Cuisine. of engine a consumption. we time, consumers homes with XXXX, same our solid frozen share of that their invest consumers to eating performance our greater in within develop continuing and our believe European the the optimize we evidence we food the occasions growth to longer-term brands during the did impact modestly maximize decline is

Green grow as and Specifically XXXX. [ph] alternative, the XX% fish growth and which continued by on deep Cuisine, segments, our during launch of fish chickenless have burgers growth grills, is innovations, as This are less the and with by in seen mid product with driven fingers. pleased we well technology that business

how to demand the to years ratcheting growth in since segment inflation proud I in be different a and growth chain supply XXXX. pressure radically in this XXXX, expect a first since to of half environment the of of am has navigating dynamic continue exceptional XXXX our We ahead. driver adapted

by network, business manufacturing excellent or capacity process revenue, expansion million our the our we cost million volatile in projects levels to despite of higher performance to EBITDA of model, we this environment, expansion continuity ensure investment our right our and €XX on even macro after capital for in and invest back by -- investments €XX Focusing of strong cash and working Within driven reduction year service in capital This free supply, projects. have several million and reduction flow management. projects. was number, we capital logistics the as while capital undertaking delivered capacity this disciplined fitted €XXX to cost optimize solid increased X%

our We cash we to average. returns expand free long-term conversion continue business to to as its our and underlying XXX% flow grow XX% to expect our

year augmented of acquired Findus number completed the XXXX operation Our allocation completed a of €XXX in strong the start Findus total during million. with actions. at with consolidation capital of was acquisitions price of year a performance which brand Europe. million, We Switzerland, announced successfully purchase two in the the the for we €XXX

Frozen acquisition complete Eastern several performing geographic Our Ledo is Business, the the integration and we of late expanded In into our Food markets which Europe, through in business Fortenova's well. and Central is new September, footprint largely brands completed program the leading Frikom. and

nearly hard even scale months and increases target the Nomad of what growth-focused have leveraging for capabilities commercial by to pleased are business seen. in the to and and capital Foods. them of significantly owned business, our In now end XXXX. the we we teams our The we brands targeted plan enhance we have are A&P invest €XX confident investments the with synergy have stated and with million positioning five are further of share working leading delivering We XXXX, and market by of

characteristics acquisition share, XXXX brands creation Foods with cash it. For Nomad of represents and deals since one fifth our market of awareness strong Fortenova's Iconic shares preceded attractive in it flow. Frozen the Food number and the many the consumer Business, that same free of

the excited food integrate we're Europe. While capacity have the across the consolidation in quarters, frozen coming to to Fortenova we appetite continue and of

announced updating you To repurchases forward is and to August pipeline look as to continue share. and $XXX have a total value to drive program news a have with a XXXX, buyback regard value. opportunistic repurchased we we XXXX. active for expiring M&A date, shares highly August million Our we when X.X accretive we €XX to shareholder of progress million in we million option In

a Turning sustainability five. of the to in XXXX. to We're slide share we achieved pleased that milestones number

climate As provide significant United frozen to we transforming in agricultural company our and In Despite food we Europe's major to across purchase resources playing our and reduce tackle are produce, XXXX, protect committed raise continued change. emissions. a we part like and Race the leading plans gas examples. have to Zero with and our significantly fish challenges announced the of few system in natural the XXXX, food green supply I to you would to chain joined Nations to bar and a

are World sustainability We the on Wildlife our partnering also with Fund further work to culture. enhance

direction During XXXX, we reflects of achieved strategy. XXX% energy within factories our our renewable of business, in all base medium-term the electricity which the

the food of recognition of well-being. XXX the and delighted Index ranked also to industry, as of a score sustainability first companies with our Europe the included Jones in As over four years, number Dow for were we one a within Sustainability be Europe were in top in We progress full time. product on health

in to context in it we in of X. to is XXXX of believe creation business results important since what XXXX. slide this have the Turning I achieved at look our

billion Following run continued of have our much Fortenova operations to consolidated from grow acquisitions Iglo the billion we billion €X.X which Findus the series €X.X business. of a including Birds Europe, XXXX the early with to across of Eye, sales rate and €X.X into

over average XXXX by €X.XX has adjusted share. Our increased XX% rate to an by to EPS and of has reported EBITDA XX% adjusted XX% million €XXX per increased our annual at

current positioned portfolio value but business hand proven strong this to guidance the I'm consumer in We to and record review our way capital longer drive well our to will of pattern our Samy? shareholders. to detail. call our proposition brand XXXX the Europe, this supported later guidance year across and will more team excellent I and and over discuss by our our confident and results that, medium financial the term, With that to growth over now in repeat deploy track Samy optimal for is

Stefan call you, participation and you on thank your the for today. all Thank

driven Frozen key the Turning quarter will of million metrics. and reported growth of year-on-year, of our operating to Food in acquisitions fourth the fourth Business. the revenues detail on €XXX Findus slide quarter provide primarily X, with by Fortenova Switzerland X% I We more

Findus quarter our of at start was a Fortenova QX As Switzerland ownership the while acquired business XXXX, the business. reminder, the represented of of first

we period. X.X% revenues revenues from in also quarter offset fourth benefited lockdown exchange from across resulting year year-on-year. revenues, M&A, translation. consumption, Europe as by percentage These X.X% were foreign increased two elevated anniversaried prior points favorable a year Full in the decline organic Beyond by

a market food versus a Within reflecting basis the backdrop, these year declined our frozen the X.X%, growth basis strong results category, sales low down in this pre-pandemic. reflecting XX single-digit for albeit Against decline points. still share organic two-year on the was

XXX were business the through stock be increases XXXX. and XXX of half driving margin in supply prior with cost we growth Gross the of by anniversary Switzerland share business margin the months was year promotional margin positive roughly into a of basis full However, recovered lag our of goods first to the as the market reflecting XXXX, price basis quarter, declined that expected follows of volumes has XXX in pricing activity, this May during following The of two year. Findus points, pressures remaining are to at expectations. basis and mix was and and fourth contraction a constraints since momentum inclusion This gross the year of points basis was point mix out line while base gross by and the four the with the base implemented increased year. gross in Fortenova solid as in margins business, On seasonally of half the year, been XXX decline point driven lower time with during decline driven through positions, XX.X% decline the inflation. impacting our basis, XXXX with The quarter, our business compared whose strong channel the contraction. during M&A acquisitions, prior composed inflationary our mitigating a the

declined versus as quarter €XX expenses a Moving incremental of increase year-over-year a we compared against more X% XX% and P&L. the normalized down This decline in of the the year's A&P anniversary €XXX Fourth to rest the year. adjusted spend, reflects million prior level result million operating behind brand of Fourth €X.XX adjusted XX% down efforts. X% EBITDA of quarter as the EPS reflects consumer adjusted was of year the prior of and discussed. year and items investment decline billing retention a last a

of Turning conversion representing eight. slide generated to million XXXX, rate of flow free cash in We €XXX cash flow a on XX%. adjusted

anniversary outflow communicated, capital have was flow of XXXX million cost evaluated in impacted two-year of conversion working investment expansion as basis need free capital was year-on-year our this inventory capital by investments to in to prior we €XX Furthermore, the drive As our the in capacity result our release takeout. in a XX% and cash year. target. XXXX, and working on a When and outcome XXX% to by excess depressed mainly we XXXX of increased levels

nine. slide to Turning

strong billion we cash since our and six underpin formation generating Our our allocation in been strategy free long-term since years the consistently flows cash have capital XXXX. delivering €X.XX

our as and at conversion forward, continue level drive operational to portfolio term. to Looking we footprint XXX% expect brand over the to medium strengthen the fully we XX%

with During the this of to our inclusive debt-to-EBITDA believe the average amend over the acquisition debt credit maturity year, years Business significantly debt to for €X September. our the almost term. Food million €XXX of new of to average structure opportunity of was our accretive issuance of Frozen is committed reduced revolving notes capital the our net year-on-year Fortenova's the remain took three the At long an of billion cost drive facility, the year-end, fund partially we business We of as balance senior and debt to extend our refinancing secured in target, a end the we X.X%. X.X optimal with to growth at

have projects. capital X% and we we investment Harrison XXXX specific highlighted of investing in in with business X% sales as we to of XXXX As our previously target are

in we accretive appropriate. where Finally, to way growth drive an deploy to continue capital will

outcome November synergy our an our With financial that, sensible As regard Stefan active targets top and on first alternative consistent our to and Day which growth we of low set February long-term the expand based for our return pipeline as value in turn on footprint we our push our year. revenue and at core price maintain of today increases willingness the XX, outlook a potential. halves to some maximum phased capability buybacks given expect mentioned to shareholders, our and initiating earlier, maximize lose for organic within line, This outlined across a guidance Starting the track volumes are with in our slide of for XXXX. and we our we as markets, review rates latest particularly the economic balanced we as XXXX. XXXX to to is our a year as second single-digit exchange for this, range drive and solid to recovery. Investor Balancing cost progression let's final and of is towards operational XX the foreign our objectives M&A

waves of at to year we a is XXXX. of are the inflation controls to range single throughout the growth newly €X.XX experiencing reported during plan of of base of during Fortenova Adriatic supports recover Like the adjusted first our high €X.XX in the performance cost nine and to of double-digit continue pricing high EPS expect acquired levels share the acquisition. which to to single inclusion number recovery All we in, in digits businesses expect We the representing year business our another in and year the our we Adjusted per many midpoint. the the months its revenue It's currently contribution of year. grow by EBITDA full business, incremental high expected revenues due guidance digits for XXXX.

during cream by the difficult we the sales sequence seasonal of season quarter improving gross tailwind margin three three year, and performance margin mix XXXX as expect of Fortenova from result QX high expect Supplementing we the of an first financial during Fortenova pressures we a ice comparisons two Based the throughout input the to the on of driven screen recover phases performance months relatively to the over year. a two first gross and half to where and margin sequentially As cost evolution course we the of this favorable loss strong. expect provide the second profile the improving of are the in this, from year. in course

flows flow, we in deliver cash cash will confident are we For strong XXXX. free

present our we medium-term we to some conversion higher However, operate in and the of a EU's which trading countries XX% to across capital XXXX. implementation to unfair XXX% directive in combination the of practice headwinds expect the investments

and to the evaluate adoption currently sustainable this across both not time of EU are in the directive therefore and Specifically, consistent working we mitigate line way. markets is all a

the session now We will turn back give to detail our remarks. the of you. at That quarter. over Operator, the end first will on to Q&A. you. this concludes further Thank I

time, at Instructions] Ladies [Operator the a Session. Lazar you. question-and-answer we Thank with Our will and question your gentlemen, conducting this Barclays. comes proceed from of Please Andrew be first question. with line

sounds tough trying get year-over-year of should lapped organic year-over-year then first of sequential Would regarding I the you with it what you as regarding here. know and sales the last pricing And pricing to of the earnings. discussed, yet change in in was it's you're under with magnitude to in XX% know Great. Maybe sort from saw a about, Thanks just A seasonality the fourth still think some some talked questions XQ? in shape last I'm in not terms again sort quarter couple so a or lockdown you pretty of to in got you expect phased XQ that not like you've fully saw comp line still I sales, decline much. any be tough with in in we pressure quarter. what could quarter, like still a of fourth about of as that follow-up. what the in very year Fortenova then the of from of top the EPS down year-over-year. first profitability just sense organic the a I've improvement quarter, fully And year. comp start still the --

Okay. Andrew. very much Thank you

quarterly the and So let full me on the obviously results. start year results with

we're guidance, revenue is with me and which terms growth. EPS double-digit growth start obviously of Let up with in coming what

to different very full a this the year. year point, be picture will that's quarter-by-quarter. But full for So your the

think points I right. your are

quarter, to year First share the been had year we COVID. still in meantime, Interesting to we last doing have gaining that are now part. see something months. by this we XX This market last we've is way the over lap the which

price And of some yes, the the where waves we of countries, interesting To a happening different at your your are say have the increases, is to point, going structurally an in let's obviously countries, quarter-by-quarter, COGS you're that's And sort through let's negotiation time piece. nature say potentially is the some So let's that price in is always some between there faster, comparison also and the this will different say a pace. piece of right. which bit more difficult. year, happening last go we be obviously absolutely point, several to lag

see QX, by structurally these let's obviously of you definition early the and a business QX, strong I lowest in sells the QX, less say simple say winter the ice are when QX, for the bit we just cream reason, pleased. are very quarters spring. obviously can it's let's Fortenova, we very and tell But is

come are going quarter. with But is going that it's we true details obviously to to different not So the be I it story. each think up a directionally, of

Now, I market sales. the about planning We Yes, over see a see increase again, in you I exactly ramping full share comps first point quarter. think in question this basis. we're should what -- on think also But your the about to the the year point time. obviously second about up tough your to

to be going we see have. So of which -- what to But after grow to bit perspective different is volatile all growth, again years It's what is a have XXXX. nature. this can intent we -- we definitely the compared a six that's in by which year,

been some frozen year the about a digit, countries just itself last general of sort at category single more those days of category reopened kind would still the the guess you fully changes growth performance more talked you think can in of of quickly go lockdowns versus well we've Thanks. once before return given leads lapped single-digit in you that lot for seen then, Okay. lockdown to retail low Have any of that. nature believe year? of that in the in many sort about environment that modest sort these expectation sales of some that I to you to underpinning grocery more frozen lap the category heard and significant year fully you I extreme Europe -- running down and overall last recently you organic food food as would of sales that the kind has low growth around a about talked be And have your you've

of we CAGR the XXXX X.X%, with think two in say think and I basis, distance a you're seen -- is definitely XXXX is CAGR years. of obviously two-year higher see We you XXXX, can Andrew, category. a basis. XXXX -- absolutely we on which it a what compare let's the around right. When as past had What we've is what than

the nothing see from believe standpoint. -- I be future and a beat bit going to have definitely to is something in to close something why a than -- Another you can precise. to is frozen I seen frozen million They've again that people seen food what I -- big definitely have it. start encouraging. they way of apply for markets, we when also beginning, four to think number the going to consumers, that frozen see waste about the and meantime and And by in The -- can people, it's also it grow so think consumers we lower also And five I wouldn't is is think, markets. I going we million they were definitely or and XX.X growing don't look very they've it's top but we've it, it reason close X% think consumers had of they only And taste definitely example this the XXXX for at that like number well, like like any component. be -- all which beat -- to we food. a XX the tasted the seen

to strong tailwind the it's future. think I us going the So definitely are and help and for us health in sustainability that

will yet. in materialize We to know are things these what emphasize at But definitely we key future. pace? some don't the holding So,

you. Thank

line with Our next proceed Jason question comes Sachs. with Please from the English Goldman of question. your

folks. morning Good

you. I on Yes think price. of year in noise base. question the be lot for may there's know I prior afternoon a it

look quarter. on time, staff two-year the every when So inflation at escalating you've sometimes got lower. same things And have But to price at a it's do we we easier that, basis. slipping clearly

I think has consecutive price your this negative. on is quarter the one driving a negativity? two-year that it's basis second What's What's that the erosion? what or stack driving and eroded, year-on-year And of does roll into get we inflationary that magnitude as price year foreshadow offset pressure? increase in terms now of next pace of to the this going to you're some

think fact obvious have the in reasons. when into think year the were before, I underpromoted to take see for QX we I QX account Well totally you that you

reason I you intent can that the only that's I COGS. main so according is obviously in that QX. to definitely why tell have And you price difference to mean the

prepare for a bit know in want But that's coming to exit the and ourselves be we how to As to it's staggered. the going year Europe, we years.

we've So quite price. also We've there terms that. I frankly and which in that low also think you standpoint from as was last then obviously know extremely been efficient is very materializing very, of COGS seen year,

time at also recession. COGS also we're of label, us to now potential is But to right pricing. think clearly private according with obviously helps well I in compared same the equipped terms which a

know, way that's country working you but Just the time and there it's country. bit taking more here as by in

and a surprising of the on suppose on negotiate on in a year Europe was rounds good me. year one you timing I start it. type per Well way bit always potentially of where comments multiple I've goal market, your that's shot can topic viewed Continental a to as the

and for you wait year. of kind next to locked in You got

those have seeing well? were in rounds flexibility UK, multiple your comments are more So, more you as where European referring to markets flexibility of or really more you

be world The simple, changing. is would very That Jason.

are and changing. That's will so, And be we it. changing orders the

it Thanks right. a All I’ll lot. pass along.

question. comes Please Robert your with next Our from Suisse. proceed the with line Moskow Credit question of

I'm make the to Hi, doing thanks. I sure right. just math wanted

XXXX. Fortenova on million an least X% original the in contribution I'm forecast. at getting €XXX based

your doing is wiggle high-single not case your I organic right the the organic math growth definition of for a is Am modest? being very, There's growth that's if XXXX So for there just guidance room lot positive. of very digit. or

what double overall on if say pattern Well, that EPS are or the digit we've revenue want profit our on standpoint that we be with earnings and have. you fact remained effective going let's the that to from

We for are clearly in XXXX. seeking growth

clearly that's a I synergies of integrating we know, that a newly have vector driving and history But is to Fortenova as doubt. contributing out no business mean fast provided acquired you as as have the contributor perspective And that to we business. I a I some key mean perspective. the can. that on from we was mean fact be to Fortenova going a

existing where totally base And to invest area we Fortenova is EPS But an don't business that that, a but organic we both, that growth combination of you to the you overall, So mean want the being overall provide your either. necessary double-digit as to be acquired know commitment breakdown drive overall. I a to the we the category across effective vector business we is continue have in grow. and if buyback continuing a key

way. growth start yes, put always has the thing more From based been that on I One M&A combination the Robert it model would and of our organic M&A.

so now. that's what's And exactly happening right

do the to business to line. you specific more I'd there Fortenova a shrink to maybe could. that rationalize first find to if top I on you've like anything had Is grow with SKUs get little

detail little is what need that to the you're us with you providing that I happening think more business? a Given give there, on numbers

is Well it not put changing. the would that business I way.

A&P brands can what I requires we've think a seen which see great the from -- upto is is knew stage. this great what route a of doing. at that's reinvestment five and business, only we freezers We're to especially what bit terms months we're thing the confirm in doing the also can exactly think we we market. the it That's for as only of example start bit increasing we're I

also way Win of much Battles. the with in the model by line We very Must

Battles the what defining are Win are. We Must

very will be food, unsurprisingly by this but what the investment even imports also for and much with in the compared business. They So focus, home of the some would two People take we one way. like the example do or ice that's behind other we like also for we country. which frozen line in to the categories said there rest by other is focusing it are the way further nothing the cream changed key -- but

complement the and very well. Overall up to is have on our clearly that refer and add we beat Fortenova I have mean out. very gearing track XX makes back organic top the where on I frankly well. Bessie's well as with complement the record a fast. synergy integrating the fee strong line M&A the the But and to very side revenue And Aunt what on synergies Switzerland Findus -- we would fact cost the our are as historical perspective driving and of talked I in announcement. Robert, well. to I that's we of mean agenda well on picture consistent to side, complement would then clearly as where good Goodfella's as what

this bit is bigger. a just one And Yes.

Okay.

take fair? Because in that in question more you're And like. US, as on at of need expectations you raised pricing about the then in there's you sounds another that the So in during than course country as Is it year? sounded a -- one given also you just least you to. to pricing terms describing for pricing the Does there's way well imply And you to a going need like Jason take it's pricing more Fortenova one increase sales no than year. country ground. in your of than waves. This more expect it already follow English's if a given up change one the price a know more given be you the more

Well, end once. Yes idea this than are point we to countries to I level a which more a point But so different on your line a But is with the intent are partly raise to having US a lag -- different really we price all doing the the that things country. of are go between country would also players the not inflation in we want. kind need different. Otherwise by of bit what price and nothing is -- of is bit and COGS day time way. your basis just at

the So doing. US that's what very players line US much are the in -- with

And last question.

to willing time? things? price, raise market you volume saying share. Can you're You reconcile the you same as help you expect also two that at both said but those see us you you're some to do gain Can

never Yes. to That's it's -- do I important we already the time. way. think Robert, by But it's by both were the definition one same at We think I well -- easy had yes, right.

future this. So that's the not around job sure obviously of our make cash the important going that of But be what's to damaged. say value are maneuver in flow shareholder to is let's terms to

believe do as still market to what's sure it a our the and same months. life us to important intending basis. that the term let's it may yes, we're is make time, by so, and the way are Well, for is gain shareholders road. share. have to right means Still that thing that's for been your point that margins and some And the in to we management we if on doing the this We've the at gross once say the long bumps XX long-term protected last on

want the But depends year full have what dislocation And do we to what achieve. negotiation. or on to don't we as so, to that's defining -- want want you're what it we what

inflation That's bit happening carefully things. you these normal. yes, what's a is when higher. have But So to choose that's

Okay. Appreciate it.

proceed [Operator with Please question. the comes Instructions] question your Mizuho. Baumgartner line of Our from with next John

question. for Thanks morning. Good the

are in in of there's new is your basis relative products? frozen, you on you've demand larger then the the think you growth to have lot sustainable First swing mentioned XXXX to out for Stefan, seeing To home. that like revenue organic of And even terms of curious it Cuisine. what focus a independent been And meals consumption pre-COVID? changing the can the of increasing offerings on growth of given to portion future trends reasonable new the era on since been consumption the of home that off to contribute and COVID entrees then those in households the mix. in category come mix premium focus into single-serve consumers I'm the extent but a Green volume in during product morning, given a this I'd

Green is what consumers of Cuisine a something long seen our -- point to fantastic that quality. category. in category start your Green the nicely. tasting these definitely let products. is point, with very term and which Cuisine. be which And is to We part to And growing, new which We're growing me testing great of nice. a a they've a going is Well, of market category, we've is believe this lot it's it's share gaining seen

to by So that's generates Cuisine which gross important margin. very That's Green also for way notice. the nice a

put For I that would the it John. way, rest,

and what the true categories country, gross Win a very there let's what concept, the remarkable remain frozen for margin. changed, where have is we but we country is battle it. your convergence food with And we're said have we think which growth potential just think is gain we're by brands which Must highest highest But for know market and say our like we that very not no as from much which share, our e-commerce We on is the capitalizing line good have you highest is said. point, also like good I the in standpoint. on with to from I adopted focusing always. us you obviously To standpoint,

in the Nomad on XXXX. And transformation, company-wide Samy, this then program Okay. optimization operational launched side

of XXXX? you. that terms of supply areas think And in chain terms But the then as since expect can optimization? highlight made good any program for accomplishments during some milestones specific I what can Thank we you to XXXX you or in focus in changes well.

I was maximizing to whole Sure. really you optimizing if right. as them cost that mean that growth would your if are you transformation John, of I on say revenue a the program and in areas covers one want the that are accelerating XXXX set record well of effective number and it and just in initiated structure.

of So the task us key of together cost optimization. starting at this work are building going very stead that we have team sides revenue putting the to completed both on to say appropriate and blocks the effectively on drive let's

for of hear more start we us very is phase the sad if that clearly will in in order we're of as year. this design half You phase But want second implementation the completing to the you move speak the in year. the

you we've So it's a about big multiyear and it's a as been know it and program. talking program

So XXXX where effectively XXXX will towards kick be parts program. opposed to off probably will the probably look implementing the you more we different onwards the of if start benefit as to

Okay. Thanks for your time.

Thank you, John.

question Please from next comes Our question. proceed your with with Jon line of Tanwanteng the Securities. CJS

on in annual just to a to little Hi, prices is beat pricing business was it you good and the terms your model? morning. way on Are year. multiple wondering, before of but big model -- bit with there the Thank staying still that that's Not I a you US for now if you expand a maybe ability raise Or taking go the your commentary piece of to real point question. closer to still you the increases this death, could my time? more seeing just to the reach parity with

potentially think our operating I fairly the has conditions of under level are other okay? Yes. a John, I staples particularly single inflation. conditions been in is lot businesses market the changing, mean a low in and -- Europe the segment historically reality there of

that negotiation are regular plan margin not view effectively that preserve you which And optimize dramatically now touching we gain as everyone. hopefully growth to a are alignment so got pattern into The with very is us as CapEx you usually to only is will if you inflation effect but seeing contributing get familiar promotional inflation, share. what changed you to has want know. underlying the and And is

either effectively stage, have the inflation. year this scatter reality is to conducive correct we probably there they condition in more the the very to are and at high try or of go effectively with spend a a whereby that's inflation pricing the the -- to So to way

this there's So in the is other forget many that us, that as pricing there's operators pricing as area per optimize we but starting such don't rates. a not Clearly, know components of process. the architecture pack such are such as promotion but within to is And well other of just as you only se, that price important [indiscernible]. concerning something are number as

the softened reflect So than developing that into the we appropriate our effectively strong all us enable pricing. as idea go the has credit what and to with to in be our trying inflation retailer down frankly the to one us But is year very revenue the implementation growth doing in way a made that whole of level rather strategy. of vectors in use management really the in

lumpiness will for or maybe Great. this of you're was expecting you could mentioned you think And wondering this that then phasing a some I second, that year. you that. talk Okay. year. if any separate concentration get And the acquisitions I about Thank concentration Cuisine if promotional spending if there's on there's Green specific any program?

understand, will expect as help today? the that quarter Just through how run us you it

product is market a is hearing we situations promotion the supply had if the promotions And are message think whereby want we the issue promotional we have what where because wanted. have to the a to effectively in past see up because one we critical. ramp-up you the would I you're quantity like simply particularly On been this we in didn't And to absolutely business. not the grow of

are point think I are to the we majority vast getting a to where issues we the able the us, behind supply Now, business. promote are of

us which on which attract on features hand would the displays -- And the business. which in sides leveraging But clearly portfolio the to our intent pattern the to of [Indiscernible] both so drive activity cycle. continue product more competitiveness Fortenova in and will go for business eye our the being will on is probably a you therefore the year through end-of to -- category be different of order steady the a go of in and promotional business is across well as on on see promotional one in the consumers it promotion our seasonality

Okay. Great. every you, much. Thank

[Operator have your follow-up of Jon line from Instructions] with the Please We a Tanwanteng. question. proceed

other or or planned in for around wondering repurchases follow-up. the capital they? just year, if I your guidance are the that? EPS any assumptions what included you allocation there are And Thank so within was deployment

I mean Yes. have €XXX We -- we authorization. million on know the as you aligned

We QX. in million million of have -- out realized this €XXX €XXX

us if opportunity allocation on We for as are up to always continue to capital the you of And optimization an performance beef buyback versus from assess going other to our look an form EPS buyback standpoint. there. at we

time So region this we'll have intent use effectively of make authorization clearly is number a it. program the there. but At is we moment formed per provide the the to you to and se continue right good the the very the in But and is to contribute to to We've shareholders. and we this at possible place. started we objective intend EPS double-digit have return for driving growth the best authorization the already stage continue have

Great. Okay.

be to just is of in component there clear that's guidance? So some that included

allocation at I a just not us possibilities all told of said the looking at order very you. regular I've told within that are way delivery in our for in contribute that. looking this capital the you goals I've and to we to clearly strategy.

be down the or in line second of enough. there Eastern else may any get I we And from just just follow-up may all just be supply any that at terms may. point? the ability base impacts there if is chain Fair then supply was I Okay. not just risk given that your demand and anything in wondering at Are thinking to coming Europe? conflict this

first have very no we no let at saying me all sales and footprint in these start Well, little very, countries. by very,

first in some have commodities chain, as yes are thing. the energy some one supply that's So everybody fish component that like Well terms ingredients of well. of definitely -- is we else

a to hearing obviously waited we're else is say nature. are we have What prepare not let's far more the exposure. -- let's Still what financial some have measures as we So of so anybody ourselves. say

can adaptability that the the very name be we've game. of So -- I we that demonstrated -- are That is -- are something we the can be think strong we're with. we

definitely dependency terms already of we And we ourselves how kind species other prepared we the if do that so things. can to in can have needed of move

midterm preparing term short we're So ourselves.

haven't We waited.

again. you, Thank Great. Okay.

Okay.

is question Barclays. Please Lazar follow-up your with next proceed with a question. Andrew Our from

one. quick a Just

for would what were needed just Sorry of mention 'XX? in if for what I'm terms looking get I help be you in Did inflation Thank ultimately you. dollars? a manage trying to to missed there you sort on profit total read And pricing this. of

inflation when to definitely execute. you that COGS are the the you different and the between provided a pieces there. breakdown business number I know and suffice between the out depending some mid- specific aggregate rest fish of to and start different haven't on our ways across at category want of associated But that going view veg you have say We you different if But single-digit the of mean to components. to high pricing we require clearly looking will effectively the our

Thank you.

Our the Please proceed question. of BTIG. line with comes next question Saleh from Peter with your

Yes. a product? have to a Europe Great. supply ongoings sure in you're to you I on appropriate the you little with bit what just period ahead that crunch make of do just stuff point? wanted sure elaborate on Can the just you question. at you to can come all Can in time make chain to previous that buy this back

hedge increased for our of say for over it's fish of we're -- thing. That's example we're to Russia. in not thing Well, it all the limited And one then obviously first energy hedged. doing time. let's and as That's rest said fully I and we example the terms

all You have the other suppliers.

to they handy very our And fish a it great to that fishless great well. example cow species can fingers, can of You for the wild I product. increase by way a the other ‘’ think And Cuisine of we're consumers. proud It's time. as right also farm the interesting can very comes at to that also obviously to exposure a move be the way see Green that's to be

long So to of the more I adaptability. think muscle are nature, term need but short by our more be lot some a to flex options the available term demonstrate will and also to in we

been mean it just our toes on that I there have in The I one sure this want is make transition doesn't on to clearly point one. lost we get think I

really to supply task and making quality this from formula to we while had force supply place think started possibility a frankly for adapt of us the put our some would we in as had and waited the broadly that start lot whatever. of shut that same today consumers the thinking we a down effectively routes be really for scenarios have availability saw deteriorating We or while maintaining order to to case requirement sure a preparedness situation level have not for -- in ago has we been this have in thinking that

peas last where I is got So We it, to being clearly other but had veg let's give as say year quantities large a let's mean we've once effectively products. peas which for we for is a us for the you and have a of year. not have season got going we year forget stock instance built that well that spinach great if quite

fact the And we we are need So make we which we the to place. that seriously any just clearly position we the have to working and mean I competitive sure on will in have taken in right in on. don't We need we try we very have leverage plan get that that at our have we advantage any Ukraine. stage position and Russia. now don't product this

Great.

certain mitigation to degree guidance? So some to associated and additional of assume costs any strategies in these are it them that a is with contemplated fair XXXX maybe already

as your don't important know -- to fact. some for That's the too It's something That's with we customers. whether I matter a example it's this that. have also a or be say with point conversation that will because it's not. we fact to of it's to understand a stage at penalties yet understand. other think the I well. will some the becoming The everybody at think stage If species that Well, fact there early fact

your double-digit to on is remain EPS growth. intent to clear committed delivering The question

some over-delivered. drive pattern is And there. delivered And same element So there the year intent We forward. our know as -- others. no we've not were if you I to frankly the as from the record different look mean is adverse if to past continue we this

numbers laid the we We are committed out. have delivering to that

much. very you, Thank Great.

of line the We Baumgartner from your Mizuho. question. proceed Please with with John follow-up have another

for Thanks follow-up. the thanks. Yeah,

by is guess Or in The really Just move in that a QX? of of share timing QX that sort kind of in I the show a a sequentially. repurchase didn't count because curious I'm $XX just QX, thing share where P&L quick basis net on the issuance. share million it of was on clarification. offset point will up much

definitely. is been out. $XX has That's Yes. if want the been how in has we've €XX million the executed The is that the playing important -- mean million QX total I number if been the QX what's you want you there is realized overall. that

thank you. Yeah,

have of Moskow We Credit the from another Please your with proceed question. Robert with Suisse. follow-up line

thanks rough to in it a confirm contemplates can maybe just total on oil components can clear natural of And those Hi, again. per cost like increase you you And that gas. a percent on us $XXX give barrel guidance, estimate of be your what the significant basket? are

the can offline take feedstock on specific We underlying assumption Yes. that. or

the macroeconomic forecast our is with consistent that that guidance the is have. rest and that I assured already think condition into Robert that embedded we

I you. but of we've effectively offline if relating increase if The covered energy want mean of we the at I a against you if an freeze hedged where COGS it's assumption industry can you for elements reality percentage know that take we a total Our as which is for have that so the interest even we small specific that a are represent will level of cost our we significant and are year. and you small. that have inflation still all seen to But be hit we

or Did mishear for mid-single-digit pricing you expect XXXX modeling Thanks. I say did Okay. you your that? in

the you high will the timing we products recovered so out recover of the through us waves adapt would our have basis then exiting want of mean different year. year inflation from indeed. enable to the the didn't. did total pricing that mid- the inflation I inflation And and No, want we the are commitment we to come the if on that accordingly We pricing, facing on range a on if yearly to depending single category on you say of inflation.

Got it. you. Thank

to further closing I'd like hand There Stefan over questions. to remarks. back are no for Descheemaeker it

Well, you been participation an for eventful today's year. on has call. XXXX Thank your

We with are supply chains. all while impacting learning COVID, inflation unprecedented to we live global see

year. of shown Our we the organization commitment remained that the and ensure incredible outlined focused of business delivery the at has start to objectives the

look to year fifth six pleased record of forward consecutive achieved it performance are XXXX. We and in have to the making financial

be As to you we the business forward more to a We look in today, there. reminder, speaking detail. where intend we'll granular talk later attending the to many through CAGNY drivers of

conclude and teleconference. today's Ladies your for this gentlemen, you Thank participation. does

time this may and have day. at You wonderful disconnect a your lines