Nomad Foods Limited (NOMD) 11 May 222022 Q1 Earnings call transcript

Thank you for standing by. This is the conference operator. Welcome to the Nomad Foods First Quarter 2022 Earnings Conference Call.

As a reminder, all participants are in listen-only mode. And the conference is being recorded. now Head turn of would to conference I Bucalo, Anthony Investor Instructions] like the to over [Operator Relations. Please go ahead.

Hello, first quarter and Samy Anthony the call by Nomad Call. on our our am to Investor am CEO; Descheemaeker, I of Bucalo, and I Head CFO. the and joined Zekhout, Stefan XXXX welcome Earnings Relations, Foods

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

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

remain joining earnings. we for to guidance team review on the deliver welcome and for results us on our to executing XXXX you and Good February. the the for back all to are quarterly and we report first Tony, you, everyone, that today. track call pleased and to set Thank We're thank afternoon, well first in your the quarter

by these great macro entirely disrupted model, strength team. are and our significantly waters. been performance, see We're a of has resilience as our and a business the our with business by of we to we backdrop, the difficult but satisfied ability Our encouraged navigate achievement our for not brands our results difficult

the in war of the XXXX. faced With we unprecedented first starting an challenge geopolitical Ukraine, quarter

and retail Our this is high have from costs It proposition, our execution are sharply through Europe. inflation we're under process and refining input risen backdrop strengthening while increasing with year-on-year, and our improvements. investments further world-class targeting consumers delivery, across driving supply on performance consumer that coming focusing pressure chain our while

adjusted future. investing With Looking €XXX acquisition first improvements, of in metrics, of gross portion key of declined our to to supporting COVID [ph] against a increased by margin the input EPS the significant acquired weighed newly our year-on-year, last of million, we free costs. this before And that business. the as comparisons were ahead We on like share. in increases cash year. our positioned well the place the higher strong XX.X%, least flows, X% to our points basis recap with results. in pricing supply are and in our and €XXX the of one represents lower rest on at acquisition, price hedged year we material expect of a are plan impact we our more costs, investment compared X.X%, year, round to inflation. lower decline inclusion maintain by costs an offset help cost per higher the well EBITDA driven by reflecting Adriatic of volume by we raw year, finally, of sales time and adjusted last reflecting Supported in delivered XXX organic input reported X.X%, was revenues quarter that, Adjusted also chain lockdown of €X.XX beyond. million difficult We're brand which and latest first still Adriatic for beginning XXXX I'd revenue to us financial Organic

this still decline EPS versus a last of our €X.XX Although to XXXX guidance represents track year, X% deliver €X.XX. to are we on adjusted

boost first growth slide revenue first quarter, by both and to Turning inclusion a four. In closer time of the driven small positive was from business currency. Adriatic the

sales items, we to lost to our lockdowns. due Stripping out by large lapped as dispute would and one-off single COVIDs organic a a results sales these period. due declined low driven last shortage have in been X.X% down year's another pricing strong major digits retail revenues with poultry for in lost Our U.K. market organic We the volume sales the a customer.

period since have get actions [ph] did pricing with weighted our pricing of our of quarter, both during the to We full benefit successfully issues. the was phased We resolved many not March. the increases as across the

expect sales our improve to as of begin post-COVID comparison. get quarter and the lockdowns benefit We full quarter our we lapping second pricing trends first

we our recovery half acting after our next first pricing take year momentum on However, we one year. of round our once top in of not annually, gain expect the we to of from early QX. the margin do take pricing second until Traditionally, the

costs. experiencing. starting more be a taking we U.K. we the boost will This period year, early to offset record pricing unprecedented the pricing at help should half of of planning of However, second top wave the line we our recover and inflation, inflation for midyear least are in and in We're are more cost one the

is Just recover year between to evolution What position gross is long-term the us to is are increases matters this appropriately to us a margin, which our imperative it we price and the our always retailer, and next which linear profit to COGS increases, and clear, to staggered. are margin of for believe time lag dollars there be year.

in are deliver XXXX. track that to We on recovery

XX our all in encouraging highly share were trends quarter. basis across value grew the share Overall, markets. of we market points Our

on battles our on define XX points our than are commercial share of in grew our which success. basis gross our Higher more four we top the These and costs margin XX% where weighed input average sales. represents profit QX. in we However, markets, must-win

outstanding However, for roughly accelerated material XXXX We're we've space while still rest product XXXX. risk of requirements had formulations our we key standards. XX% taking appropriate, we the no On have use our taken covered We're volume high-quality mitigation our execution supply and reduce oils, across XXXX our with derisking and quickly to our strategies, In region, in markets. the wherever portfolio crisis, sourcing In taken products to effectively an we and With date, year-to-date, also energy, of driven our ingredients. of in water been well raw we for begun shortage by we the have steps of adjusting across recovered for Russian further our the are we our to on new the position business all the for have eight the hedged. Adriatic meeting edible diversify have also prepared a highly we encouraged of business. this XXXX. are have by our hedging team performance step

consumption expires for August meet our €XX levels drive we XXXX, In repurchased we regard ice in a announced $XXX million in million share XXXX. program, we by buyback In XXXX. target accretive value. shares, continue QX, repurchase shareholder and to August we and us is Easter well, program was highly we a million which cream to peaks. and progressing nearly pre-COVID Our summer €XX synergy The return confidence giving will of season the selling integration tourism are strong, to performance when confident option

around center today. which tested been now growth Win other company we’ve and challenge Turning culture XXXX come in company creation side. is Nomad managed We After the the the and a uncertainty. and unique pandemic the passed XXXX, to of Battle are Must of our not a then better of breaking turned challenges through slide XXXX Nomad five. first the who has in Over This in multiple XXXX. created and at during have in time period through is COVID on focus, we the history, out we

inflationary Through chain materials supply source, global exceptional In the meet these to this late new convert quality demand our COVID facilities capacity. well at in year XXXX highest the were raw In but this We to challenges. to has with continuing our our we environment, XXXX, supply provide commitments higher are evolved and capacity and how difficult year-to-date, will shortage have the exceptional of step-changed XXXX pleased and security of plans our we especially Ukraine, war organization. our come are inflation believe this a to to have for high in and by I'm XX% and we than navigated positioned out be despite when robust pressures. in running supply strong and place at retail growth challenged and I deliver we partners, early

a significantly improved fill rate, finishing from the level the same year XXXX first service versus improvement a quarter at year. ago, XX% current points of basis last Our XXX period an of

we've focus costs of on climbing portfolio Additionally, proteins. market the for are evolving our actively of reflect This is we in especially and important innovation, realities. to our our new rapidly maintained light all

with planned Our have the quarter flagship more that second gaining brand. is line we innovation Green Cuisine for share, plant and protein

for Year. We listed Grocer short pleased Cuisine food the that are XXXX, also brand Gold Green Award of in been the for has

listed Tokyo Olympics initiative for GB XXXX been our Power year. [ph] to addition, also In Team Proud for the the short has consumer of campaign

When with even that difficult financial deliver OEG most are XXXX, we focus of in on on we this our our responsibility our the in meeting against are noting our carbon balance efforts area neutrality. commitments. worth backdrop, is to it important metrics. especially track believe of maintained our we We've the Finally, resolute on social net to out looking goal,

XXXX in full new in is grown creation to discuss will including from accomplished Eye, Iglo in in year believe billion what we and business Adriatic to billion of recent are we Samy billion, later what business. we important year line more our years. XXXX. our €X.X consolidating this have in the with I of revenues in to it Birds grow detail, business achieved run a €X.X look we've with a this rate have guiding at €X.X Findus, After of As

We adjusted XXXX. XXXX have to expect from the more end of than to double EPS

our we There produce and Findus We elasticity chain, we to Aunt our Bessie's the difficult add sales accelerate good to business Also is have of capital deploying value-creating conditions. this including portfolio that supply assets of future. excellent our eases, supported volatility and review strong but of financial growth our optimal successfully team hand and in more our well now an the in positioned expect integrated value shareholders. track results a by confident the are way, guidance more will than plan across period billion Switzerland, driving in accretive €X that situation, confident and call we results I record Samy? and our our acquisitions, see strategic to year, brand in when is more Europe, in will that, to proven over this detail. including I'm uncertainty under some for With to Goodfellas, a Samy

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

will key acquisition We detail more million Turning finalized reminder in on a September first the of I X.X% revenues to business, that in transaction driven provide slide a our Adriatic XXXX. €XXX of operating was reported growth quarter by metrics. of quarter, our as seven. first year-on-year, primarily the

seasonally M&A, favorable FX margins comparisons, were the volume promotional XXX of lower at XXXX. Mitigating difficult composed of are were quarter. a organic time was Adriatic's supply line point some in increase pressures This acquisition, our drivers year reflecting was of in percentage to X.X% in benefited be decline is key the growth loss the the basis XX.X% from the expectations. compared prior inclusion during by Gross to XXX The expected decline chain base year. during constraints remaining by point quarter, markets. also at whose basis offset as a pricing Beyond this to margins with revenues These a lockdown the first points due in and quarter gross and driven points a our basis further U.K. the first follow business, revenues decline X.X XX translation. of the inflationary in price lag impacted with contraction margin through implemented

the to of P&L. rest the Moving

year-on-year supporting brands appropriate Its A&P First adjusted more year-over-year. normalized level of to We reflects of operating €XX stable committed level a spending. quarter expenses of with were our million spend. remain stability

decline was X% First million previously and EPS reflecting prior quarter a €XXX factors down year, X% €X.XX EBITDA adjusted adjusted prior versus discussed. year, our of of the the the reflected versus

of flow of free last Turning tailwind year below We cash €XX from first flow slide to conversion. this flow cash switched cash to year XX% on in of are cash eight. quarter, generated still our equating adjusted to is a XXXX. million shortages. COVID in as position during we of This million anticipation as QX of benefiting the in free related a a working use capital we remainder the source from €XX Change inventories in material raw possible of quarter, inventory before rebuilt last cash we build

ago decisions. interest tax While as CapEx cash were QX, Changes year for do phasing. due to investment in the was higher primarily flat a quarter cash expect versus year offsetting strategic broadly and in we support both CapEx the in we

We flows expect to deliver in strong free cash year. this

investment, year-end are which to us also earnings implementation final our However, from Trading let's that, our short medium-term nine, of of conversion to higher in in report XXX% Unfair a XX% expect targets. February. we Practice the our capital guidance, review slide inventories the slide, XXXX we CAGNY turn to and XXXX our of reiterating leave combination With stepped-up to typical Directive EU's

sales inflation factors projections the XXXX. half Our is based second best of other our of and EPS guidance on and on in cost

in As XXXX. to remarks, gross over mentioned inflation of margin course several through and an Stefan pricing his throughout year, expect waves profile the we we improving recover thus, of cost the plan

mix can dynamics. to expect level to margin so Hence, appropriate wave margin. need half We market in reactive may we and as Adriatic's recovery pricing expect of from should is second remain of the persist. third an We inflationary to favorable tailwind the we and the support weighted of wave third the business towards margin quarters quarter, XXXX second to pricing provide of we the with The execute that the well. towards start those the year a to a end second pressures during Adriatic's

a improving on expect throughout So to our hold. improving takes margin evolution XXXX we based performance clear, sequentially pricing financial be as our

to for is consistent first by revenue XXXX. second driven expect with and phased in what the of guided growth we Low will be single-digit February. growth increases the low year. trend half We organic the in This price single-digit

In However, volume than we mix two. a of relatively guidance. mix and buildup original the we of in price and price guidance, our small a volume our with expect spread different sales between original a in expected balanced our

but spread price and push expect pricing, recovery. negative with However, a as between we now maximum wider volume for we significantly more cost much volumes higher

for over per the revenue expect adjusted share, full of guidance will We our of now year. expect the contribution €X.XX in, Adriatic to to Q&A. turn high single support digits you. Thank another €X.XX you. All revenue to of we That Operator, double-digit reported year back in the concludes range the to I session EPS growth. our remarks. to

Thank you.

now Robert with session. question [Operator Suisse. The Please ahead. Instructions] comes go first will the Moskow begin question-and-answer Credit from We

about you. Hi, question one thank I the guidance. to wanted ask

costs here, that And as like they I are then stay pricing you'll think from need wave? follow-up. you'll know, need quick Or today, if a said climbing does you third of a third third as that that you a persists. And to wave inflation that a if I I'd does mean might need mean inflation want wave? keeps if high

overall, Robert. at then a up, Hi, middle if inflation. what increase this means say, inflation of, of creeping second the which is if want, the consider actually, we keeps that we're what we this in steady is execution you I third the effectively And in wave. on the have And effectively is pricing, would current now mean, wave seen stage. let's

then wanted Okay. positioning your make I I next in my competitive fish. And to understood sure one,

competitors label private as do to would logical a knew than transparent and because I to price. Russia. to who are You've same they in more of coming whether to have thing seem you your XX% they wondering has But the one brands, And and been think the challenges raise as therefore, sourcing? from well? your facing a raise of you're Or they other you raise do if retailer supply like you was very that about that your present to

players, simple. fish. understanding competitors, we intelligence, good private full even our mostly label it's don't [indiscernible] intelligence. but probably exactly sometimes more but is on is our some dependent the have very - in a brand same producers Obviously, question situation if that the Russian mostly the have And are we

re-branding they're put that way. it it's for the I [ph] It's would same them. facing So situation,

I in just I in way. they have we're terms don't of well, moving Robert. only increase, cost I facing, when it's think That come, of the the obviously, the going by fish I'm It's to shoes b, them. terms private it's is increase, I the of more why are broad-based. [ph] the a, limited and question retailer see something But of would not about obviously they're which cost no price. old is terms in cost different quite when it decide, a pass my the can't but is situation for in would not what. It's But to label of to supplier in from consumers. to the if. The fish, fast. retailer It's to that way, - than remit. not well, Then going their a price, question to put It's they matter from

Thanks. the Okay, back in get I'll queue.

steeper relative a from to in pass don't terms I that of would COGS the terms, you're increase, increase. to the which label, the facing but you're absolute you going when kind means you're terms, it's starting if a same even a in if lower terms exactly argue, in as increase you if price, COGS of and relative that in mind, - baseline private going be

Thank it. you. Got

UBS. comes go Ross with Cody from question ahead. next The Please

Thank morning, question. our for Good Hey. taking you folks.

your the noted in In press the question, low guidance year. you little organic slides in commentary, Can growth. organic a your for just you a put decline organic you a together? help single-digit modest I'm us release, revenue those two And your XXXX. First confused noted growth for about

sure. Yeah,

on in mean I speech think correct modest ones. think is now, That's been correct what growth intended comments stage. has a been I there. in at be It growth. I this year. press the I have is the corrected there been in right put put the are mean, earnings I the modest The has the statement, remarks just organic have a the the made will for informed. be There release, version

expectations with Got sequentially your growth we Can in you it. second underpinning understand are half, then that Thank second should declines And the as us then outlook. think assumptions it organic Many the about tougher. for That's moderate environment it? and your you sales help just expense, the for gets full expect the of that. Is back assuming speak concerned year gross you build, that to helpful. operating to some EPS Thank margin right held half way operating investors half. we you. about decline the

we full-fledge as a the same as I I impact where is bit of end implemented when we pricing year. then At getting the what and process QX, And time, effectively probably end see Yes. a the you impact of mentioned. effectively, across have have we pricing. have coming the mean, would QX, the say, we of ramp-up gradually, a last which speak the first of impact, let's are into second of map, is implementing in wave the in we of as more see executed of the from, year this take say, or less, if steady bit total quarter, overall, we you the of inflation a

up you when or effectively the a standpoint four from step-up development January, compensated of recover want, this least look pricing there you would average quite an picture, have significant an the in of you inflation to other point-to-point at exiting if at to December in with the pricing to that gradual with totality end So inflation. for is of see end early

And time, So as the stage to our case tighten the At that's take right into discretionary up two the we impacting XXXX. We set that school there have some maintain in to order we preserve element in not effective objective terms intervention business cost is maintain this of some made for further. when and consideration, there. in an see element base we effective effectively, to to cost protection continue clearly you still moves the those structure elements we of at of [ph] neutralization, inflation continue have a same the are discipline, the bit

well should a talked have We wave, more of requires think third some could intervention and intervention. do discretionary if trigger that some the the about possibility as it I we situation have

clearly, that we So very that EPS. per range stage, the at share we XXX X.XX million feel mean, under hypothesis comfortable with have the effect this a we have, guidance to I

pass you. I'll Thank on. it

from with Powers Deutsche comes question Steve ahead. Bank. next Please The go

your good raw most Yes. cost an us I Hi, Russia focused How perspective deteriorate I and was tail case from a materials where might then morning. in play bit that EU availability whitefish. bands whitefish that more the relevant. but risk? from just out? are give to or perspective. you the there's with your importation more guess Russia, U.K. excessive tariffs less on on what if continued broadly, Russia actually fish, relations risk event little of hoping risk strategies could even but more in do or you expectations, a I'm tail on a mitigation And perspective, size from

at sourced stage, be been fair, this I materialize. stage, not we've can to for be think in just At to Well, normal way. we waiting this a

as thing. it's taking same repeatedly, there. at and light. step to volume switch one the said up Again, like that's But on not the we we're reduce the purchase So time, switch you

we need Today, yes, quality ASC, the need and find obviously of are - really to But MSC constraint, or you great that to ways We're fish in and be We're But species again increase - to future so it's that farm It going right on taste. something of is the purchase are breathe with used. years. for terms with - what the Russia. fish significant of to about with is like which the we starting talking is of haite farm coming outside replacement some with We're sure to in finding quality. the dealing about. also XX% we something Nomad starting is from high quality fish like standard, very to with is criteria. in the make a has working to we're grow have close which You're is you that you have terms constraint, which [ph] kind all definitely, lies that we and same be some wild-caught. flesh fish example, provided

in which is So words, Southeast things to farms We're in Marine ASC, Aquaculture instead Stewardship this it's MSC, - other to in to of going is Council. And the going Stewardship which of together we're Council. Asia. with going is develop the mostly kind

And that's the any that definitely in working the from today But a very So U.K., one steps product, taking Cuisine, working And appropriate we're threats. is there. of you're the also product with is well, have the way, obviously, to called fingers. it's yes, best fishless countries which aside, sellers Green get a which we like is in meantime, fantastic by Germany. incoming

the the thing team previous definitely, taking. you by back other busy way, can And now, the way tell are is right R&D procurement options we to But right reasonably say, think the the there that is a situation. - so because to we're do, don't and I the let's which teams

going what to our we want future. no happens we're the and in to, So reduce dependency matter

together those with fish. back there be That's normal, to we're for think suppliers. don't new it's to normal trying going is new and normal situation. a And define to So a this we

the a the has In aside let's increasing. say, price terms - that well, broad, let's been is, Big coming say, has animal from oil. everything of I from fact situation. broad-based It's these things, think, materials, been countries other for example, been

co-position the oils, impacted we And for other it's for we no are edible have XXXX. and taken contracted by requirements but so war, or

we had shortages no So date. have to

We also mean, the have has how and food. important grapeseed know, for heard been - time, a sometimes I lot an people first you as I of you grapeseed oil mean this oil, know, in important use are grapeseed oil

that are suppliers if so working peak working suppliers, And ensure and to we've approved with multi-specs key sought our our we're and been required. with

know standards at all stage. is think, we're stand damaging which is doing Obviously, the with we this this And fine. that So have we at I quality Energy thing. without - where Nomad. we another again, what

We XXXX, to covered have a XXXX. - multiyear starting well XXXX, in cover XXXX. We in for hedged to in strategy

think it's we've not the stop to right But I So going here. taken measures. again,

So months more weeks, and quarters. to come in the coming

If Thank topic. could I is ask on different follow-up one extremely That a perspective. that helpful. you for

and something or pricing? the Is you're you contemplating. in pricing of on potential anticipating organic On you future waves first potentially low baked as third factored - growth how the friction, rounds in saw have of second your that into outlook? in How guidance, you've quarter retailer single-digit that the

for total successfully effectively you mix. At that if this effectively There the that revenue if the to strategy. pricing gone pricing in is both our at, bit the to growth you highlight most. I managing challenge hitting mix. want and to which ends we is revenue broad-based been perspective We same first an mix as February, you September, who an in carry, stage, of purely thing, going us tension just different unusual. margin simple one I we say, by on. trade the you always market. understand. question sides about want leveraging a we and because risk up we tells wave, is promotion pricing let's have to debate conversation But done this historically, And a more say, the other matter such pretty And are looking possible and have. There much, we that manage some I very same talking inflation, as stage. the I a perspective. are is of that what the about exercise circumvent our objective. number funding, that so a of give of a indeed, I mean, totality usually call very And clearly that to to effectively there or in end, management even if points the you in management frankly well do working the and mean, on had a wave. context mean are let's preservation of But increase variable year, October you of one actually around effective job second whole in the in effectively which course, time, that up point a But and the world, that is prior we it's way, is only of, to elements terms manufacturers boost there's against of there, for say, are price. order retailers This year, the positive in in we mean, of order if had those in risks with and every price risk at work which want, and want has ended think be negotiation portfolio on had quite number they that's of boat, the the fact some end The which depending round, everybody. in on start is that let's there observing this to do give stage. pricing as the the price we growth example, you this I their want at That's at deliver just to I the mean, is of had. At we first we some and are potentially, you the have I'll are

both. you, Thank good. Very

comes ahead. question Please Tanwanteng John go CJS from next with Securities. The

Hi, my questions nice and taking Thank you for quarter. good morning.

what ended were there end hedged your this at? supply. risks that you mentioned market? looking are you open on point, You Where feedstock that either kind at by And of you're XX% or the are

the the are year, moving I XXXX. point, to end XX% and until hedged To hedge. is categories really, mean, XX% where It's we ingredients. of difficult where it's some we're The I think making I progress really forward of quasi-impossible think in impossible your our some there on

basis. So where XX-month I'm from hedge we're on pushing to the XXX% to system we the like an But environment coming a limit.

pinpoint. to nothing where when also would business I I some think there almost progress making there - we're need it But standpoint. from of are pieces recognize the is that it's impossible. like that Is you to

it's say, example, things more it let's more than would I of that categories, say, more that some are eggs, - broad-based. I you other way. mentioned, think ingredients, for difficult put it's we let's kind But can

I'm like effectively where sure institution pool really to in but not will You the veg you on, so it's in the free - lock business, I all you're and supplier familiar have with mean, entire of year. that and an food an us just the fish of interest even best necessarily

suppliers the Stefan this making has to team an the said, sure pushing which price. to want same look the XX% to it's frankly proper the at job there's is And and furthermore. we a time as year get the we plan which get on to XXXX. done us from think the in XX% coverage question get with But as antagonism form completely of to need as for one, that the is even can higher, us in benefit for to seeds for we other extraordinary production a I really their realigning and to really order it an

you. don't down across valuations own the allocation now? And given still more for of sectors you know Great. and priorities, this, think including Or priority a should assets of Are capital but if Okay. your of repurchases are board M&A shares? is in how you we number a the your addressed Thank focus I and guys?

the best seeking this frankly about same. clearly, I I to opportunity the is it's still mean, all for stage. The at mean, return maximize message,

are stated constant we of in the mean, And on available, effectively opportunistic including We course, of business. mentioned. you that have options that porting all we I those that - have of approach and assessment and an we've one, the

the view have. frankly we that's that So

Okay, great.

the Yeah, it's additional [ph] also way… commodities by back sometimes by

scale and to in ask space shelf you versus your engage is environment tough share take more, If could I doing enabling Okay. point? competitors at a which this one in are

can say, not so the questions, you sure Sorry, we it. get repeat you can that I'm

supply share agreements Is in space you scale your market environment? Yeah. enabling drive and shelf to gain those and this

we been have No, obviously significant the we're remember, think especially a in scale all challenged. supply have times. say Well, more think the where I only overall, is not positive, Yes, I categories I - long-term would chains position. that agreements, ones. in especially challenging some And people a the

clearly food you movements us point, how would within it, say and I and captaincy, to - category are if think scale I looking sectors. reshape call really frankly, at the across I retailers know the at are there if some would different help share

So in at or end, just in developed to scale, must we looking help deep a very are and has maximizing say them help retailers and their knowledge knowledge, think, design I shelf, - requested that really their at organization clearly it's not that clearly while The us whereby itself. ask respect. the them frankly in-store very to revenue deep a shareholding knowledge the from

you and luck. Understood. Thank good

Thanks.

ahead. comes The Research. go with Bell Please Edge Ryan next from question Consumer

then an for operate the morning. Good the about your how maybe a also that And of able to on the integration in? Fortenova they on-premise Would regions but portfolio, Fortenova give little be understanding across specifically the broadly recovery is discuss going? you obviously, in bit

way, in through really is acquisitions, improving. an obviously, of - how synergies. is terms I simple, integration with the so acquisitions is we're to that every through food, And we've another acquisition acquisition, frozen middle the to I generate let's time focus of Fortenova paying how believing off think, we a behind all - By is approach been And the far pattern is because doing well. terms overall, mean, going it's which focus Fortenova doing I of Well, this. make to say, it a the extremely keep the or an model Fortenova of in clear interesting the in

People being for that on at it's tools asset organization, to That's I an can food. you we the And they But this take. good interesting extensive after diligence say, let's in we is supportive, have ice you more think energy, top for is on-premise. of bad cream, first, back say, always real a one change due what The of is that, tell to is makes some think also huge excited frozen to think of first surprises. So We By stage, And great for and a have we thing it surprises. - but I a your which huge have let's the want terms seen learn strategy part also thing. no have, a we've and I them. surprise. point, to extremely core extremely also a - team difference. be of big it's surprises definition, can

piece say, the something let's quality right It's something read, now this freezers of way. right the XXX,XXX, extremely far doing let's in CapEx, been have good knew we're just of year. by so And what it we is to the say, organization. across now from has the the is the for at we that that We start for It's part last obviously improve need of seen assets we've least our Easter us.

come to issues in say, cream was has back some let's pre-COVID is to situations ice starting this on of been, out-of-home, obviously, we're terms obviously So let's because imports there COVID. a say, were during a bit

I think we it's improving see big can time.

and going we're that the improve what was in good helpful So post-COVID. confident new going happen to to tools a team, very the quite extremely summer is with be infrastructure,

acquisition. love - And we I the by it. gosh, the really great think like cream, love way, a we it's also So it's imports, We yeah, margin. ice margins, the

ask just more. could I one If

you towards the kind highlighted of those actually able you the throughout magnitude took the the full the got pricing as back end depth and the the understand portion to of just of phased of a we or Would end of significant pricing? half towards that effect quarter, of came about talk to of be back the You the quarter. XQ, increases price

Yeah.

I of more support the world, think talk that retailer to to pass the list pricing promotions, with just really in a reality and from sales given another transition price impact your and the point. order The you the have put when price, business during is on place in have to you the was about you execution. together FMCG in the facilitate to transition point price time the the relevant comment to level

So increase essential. the price is managing your promotion during

on happens days start you rarely, average. what XX, raising see your just of after if XX market that's on if days example, a have a net on So is, the to pricing, probably impact net an prices sales to so, technically XX you you X, or you want pick Jan effect

it's deferred that the So have we execution. not

price, most on let's the let's the I March, think earlier did say, effect but is and even after of actually, even have important U.K. all net pricing of But basis executed as that, what's was February. the majority Jan the a really the ramp-up the say. hitting markets started execute between that we the than promotion of really of

that the kind of And of would you to a be pricing say percentage on basis? size able

Yeah.

I think it's bold. quite

of it's depending the on single-digit this think in mean range stage, I market. probably level, I the the at mid

single-digit, the from them the, of Some one we're the least the bit was a of is but to price. really say, promotions after average high closer execution least probably end the let's on the price mid-single standpoint, the other mid-single, not around

Thanks so much.

Welcome.

question next Robert comes Please go Suisse. Moskow The from Instructions] [Operator with Credit ahead.

Hi.

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they I know, because with you way, to Well, second up prices are don't come they as think I the the also, start willingness I - think part, don't it the labels. impacts to I doesn't think with it private mean, by

of So as they're kind COGS us. going through the same

mistake that year not COVID, performed and significantly would to doing this the last point, perishable. bit ambient yes, big I this they're I But a remember - other let's categories, need during over period that weaker frozen be mean than To at the think the So making is say, your you a stage, others. and mistake. also same

we're on see still So doing a overall, basis, two you well. very when and year

want obviously, things not definitely, moving So but concerned, we on. see, I'm to

that's So one thing.

are come terms is two or up in, store in assessment. carbon we've So from, end-to-end and really these approach the the for cycle study, than compared SKUs. guys. equivalent waste better waste know approach, or most is same because study, thorough let's fresh very for that three life LCA, by very which of with say, with ambient. the very, with XX let's announcement sustainability the a attributed way, terms And say, of, field in I end-to-end in let's reason We've the noticed yes, we most and believe, much in a the come is way up to at - or footprint an you taking longer obviously numbers level by also thing of much the don't them, the us, bigger fork years I [ph] if I the term the of say, And eat consistent. And we're you're time that's of a think the better consumers. level - we its doing approach. to The year for very the

So is waste, terms I need better of we communicate great what it's also the one waste is but sustainability income. thing disposable better in probably to even think less or for

also only if if you're So with the at you is in just consumer. a full same you - go if going retailer save on to level the level, price basis, because words, not year but waste to much other lower, frozen money the foods the

you're kind taking that yes, expense, I bit And But weaker. mentioned… the a the said, as the So that as it's at I gross believe we long-term things that's of of age. type stage, this fundamentals when

Okay. Thank you.

next Ross with The ahead. go Please Cody from UBS. comes question

Thank follow Hey, taking for you up. our there.

Just a question. quick

left in repurchased you. and million point dry €XXX share only you of consider accelerating $XX you would your You stock shares, XX% repurchase? what is powder. million nearly down this At year, Thank have

perspective. building our our plan to more were money make inventory repeat I those effectively, that we And mean actually, Yeah, spent it priority those regime, is that supply necessary up. gave made that's clearly full from why you. important. things serve functioning, that the the we really in probably to before And order I'm in that I the communication sure was in very made to message I war. in going clear, had have our repurchase I have us mean, to that we access to for consumers mean to prior effectively we Ukraine our

effectively from course, just taking about is availability, of So if we're the to question frankly, consideration, [ph] stage, we're let's maximization. was after at effective earlier. there supply are And looking we which say, look we And a that, but quarter-after-quarter, generate let's say, in want, capital. a the general the all best this value no, external allocate into want, shareholder let's if at frankly, you you constant, cash, as way is of standpoint, environment, sequel this say, there raised

So threshold there's maximization it's to - There's magic say, what's the a affecting going value. the of I but mix it's formula. to think us no about going not all really to get be right shareholder that's

would like I Stefan Descheemaeker session. to question-and-answer closing remarks. the concludes the This turn any back conference to for over

remain the on fruitful We all our focused are But the like conditions. delivering is, by difficult for set customers the XXXX challenging us said, we presented great thank Yes, especially and today's and call. working affordable participation a our everyone Frozen around operator, retail Thanks, loyal business of Nomad, for start, has food has troubling but as globe. I option these optimistic. on healthy, these. during for nutritious, consumers. difficult we're even our in tumultuous a times with off at in you your people families, objectives war partnership gotten to encouraged with hurdles, it a Ukraine a as has

in financial to consecutive expect do XXXX, record is to XXXX. delivered again survive expect than business to in of conditions, and we built of stronger Our before. performance We in we out tough a crisis come fifth so this and

This concludes today's conference call.

for you Thank lines. participating, and your disconnect have pleasant may day. a You