Nomad Foods Limited (NOMD) 9 Nov 222022 Q3 Earnings call transcript

Ladies and gentlemen, good morning and welcome to the Nomad Foods Q3 Earnings Call. [Operator Instructions] Please note that this event is being recorded. I would now like to turn the conference over to Anthony Bucalo. Please go ahead.

Hello and welcome to the Nomad Foods Third Quarter 2022 Earnings Call. Head call Relations CEO; by Zekhout, CFO. Bucalo, joined I and Anthony our the on Stefan am of and Investor am Samy I Descheemaeker, our

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

non-IFRS and should replacement financial considered a also be IFRS should be measures during will We non-IFRS These financial not for discuss together measures results. with read our today. the call

to figures to as Unless can been to Please FX XXXX within of and represent at as for payment expenses and the find appendices and the or just adjusted adjusted Stefan. adjusted well numbers. With on adjusted share those this available hand items, comments for XXXX. over related related, will You our reconciliations presentation have IFRS acquisition release earnings financial figures losses. from within information in that all certain you slide on end our the otherwise based refer noted, presentation gains non-IFRS here non-cash exceptional All will the note I that, website.

for on joining the us call afternoon Good and thank today. you everyone

pleased hard and grew the the across the XX%. were well in chain had results revenues across the quarter. as commercial focus, and In as Nomad, performance price supply a business. strong of to boosted pleased especially We solid review for creativity. work QX increases reported Nomad leadership, our the their by our performance I’m are great first quarter. We execution very people with for

price to performance, still net growth, a of Adriatic by of good we another increased remain the is to we Our acceleration cost inflation and organic in driven increases, by experienced value work our the much do which very posted ice strong of and region There boosted sales sales The creation. double-digit cream X.X% journey brands. committed offset half. first

leading sales another at is in the share on was high improvement brand last its protein same position Our plant two is winning basis in degree a Cuisine market category. Overall, of week across Nomad four Green growing highest a and the digit lost number point they the quarter. versus Cuisine single plant and period Green good further had ever reached market This year share. XXX protein fortifies This Europe. value XX.X%. small

is driven innovation believe the our our know are and in partnership portfolio. consistent in with preparing we you temporary brands We our that share this core However, and by nature, the will retailers. we regain help keep with over long-term Nomad initiatives are to medium them we consumers in pressure, for under

price by lower growth value of to are drive months improved the nine year, sustainable innovation management, the chain In at well within rising supply and service Within we positioned innovations the our healthy first our effective strong XX.X%. service through execution. cost level we basis winning XX points, to to tasty, means We points. we and developing offer solutions believe portfolio, are structure

are XXXX and progress we our great have sold cost for goods made at securing supply cost for of XXXX. covered we Additionally, fully in competitive

in approximately in XXXX maturity debt loan loan path profile are through also due term refinancing our We our to with $XXX in extending in of XXXX a terminal due the $XXX million in XXXX. on million principal XXXX

we business, this business proper in This will level are the adjust food area of prices to as input and maintain as a our frozen to XXXX, we performance to our cost hold. us to recover Looking our as we in fourth still working to progress heading investment category on great inflation. ahead to made our quarter, are expect well We've enable improving. the continue

We mix declines, sales digit the pricing volume leading full organic to net to year offset single expect year. for low growth

we to and costs challenging increases, offset political energy we environment, is which disruption. As includes navigating rising consumer further over expect input Nomad inflation high time. margins gross improve a prices,

us sales we increase to reported this position best financial Organic revenues. quarter good increase the of double-digit metrics, the driven X.X% strength. €XXX organic I'd growth in revenues QX was uncertainty. net million, recent driven inclusion to increased reported revenue represent our We performance our price and like in our sequential by by in steps and a XXXX. of beginning taken should period in are by quarter through of believe quarter. executing the primarily of of a XX% With enter fourth quarter improvement, our well grew with However, that, acquisition is the we've of which key XXXX recap The third allow year-on-year.

increase pricing, per of by finally, year, X.X% adjusted points year-on-year. And and Our gross million the reflecting more were volumes higher delivered by EBITDA last region, down benefits XX% Adjusted was new higher up summer. of inclusion the margin higher energy mix. adjusted the share and represent were costs phasing. and to SG&A as year-on-year, mix We XX% Adriatic nearly XX.X%, positive the by of €XXX compared during pricing offset input but EPS has elasticity offset impacts, than margins of an which a €X.XX driven XXX peak basis

our base Turning to growth benefited Slide from our X, revenues organic return to business. in

There we between to price price increases the the throughout a the for net X.X% staggered landed always volume the sales third XX.X% October year. we This our sales gap cost successfully opened our first is in quarter. increase mid-single sales on and We pricing and price low track single-digit time mix. maintain decline has the In with remain quarter. in narrowed increases for second offset growth. the increase lag year, initiatives cost retailers. organic between the which and We quarter, substantially In performance a input price, in realizing momentum linear the have digit

to that have lag. nearly caught We up

regarding Additionally, our our more rebuild with remains adjustments margins. pricing, we further dialogue over change allowing to active time gross a as retailers

Year-to-date Thursday. due will B This With our $XXX due be profile. XXXX million $XXX The flat We of visibility Term focus dynamic volatile are our this environment, the share portfolio done average XXXX debt close loss in is of on a with battles maturity XXXX our has cost. and debt in with and cost, a entire covered the significant must as is making is or in this and entire refinancing is extending Loan and would was us extension, through and short-term covering XXXX believe to enormous interest our have priced slightly share for good market attractive in been will progress fully B in our pricing environment. attention highly nature. Term battles. in a win We million consumer we're mid be We're deal an in schedule balance QX. for covered will down we this This XXXX. share effectively In for for Loan on enable business on costs at XXXX. in overvalue slightly accelerating growth approximately winning

target a and trajectory growth our €X.XX for adjusted to with a €X.XX. execution single-digit represents XXXX deliver we of XXXX for adjusted confident remain our EPS EPS With Longer-term, affirming of year we costs strategy at on are our that our the guidance This €XXX. high this ago. are pricing we business range successful pleased versus coverage will year, and

year Turning is to our progress to change slide three to in focus X, challenges which throughout Nomad all Ukraine different. has And no war can The on areas times many the have We us has react required history. successfully adapted this market. to strengthened business. difficult our report quickly

we strength cash as strategies. the be price executed and to margins planned First, believe with this flow invest enter we good of and brands. will brands see needed to we to increase in a We XXXX And fully our our the in shape the testament our quarter. in

strategy diversification fish our moved stage. new Seconds a into has

high fish. have farmed quality investment a news We of good in growing

we to sustainable happy or farming. we We whom We producers, of compliance. of that on Currently, XXX% supply diversifies by our XX% is not sustainability goals. geographical be that sources, major secured our track with fishing driver in XXXX. to are only species but our These responsible for ASC new source and believe from also comes are of are announce an October all fish additional

over initial next an the see XXXX We for additional expected years. expect the growth provides fish in in This potential with platform early also the rapid benefits for farm of investment capacity innovation. in to us three new supply with

have many high in products key in the markets. new place fish We for quality coming across years plans Nomad

ahead and a of during strong of season saw the our seaside, returned that report had future. to recovery our to this region in region proud We of We are channel region by successful as be gain tourists and plan most our we the sales market summer. strong well. we is growth summer Adriatic and on-trade ahead expect important schedule on of weather year-to-date, ahead of good The will is share and EBITDA integration an helped in a expectations. selling as source the the the Finally, of

the at going now As is transaction remarks with Samy? that, of forward. integrated a numbers note, Samy. the to the And into finalized end turn organic will was Fortenova XXXX fully September over I

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

a favorable X, by well of during in last offset the net basis increase decline was €XXX to more in increases Price were price Slide mix. our driven third revenues which reported a will XXX in business, second margins operating XX.X% increases reflecting million quarter X.X% as quarter, quarter, helps effects improvement. XX.X% of I drive new Gross were margin provide and a key points XX% versus third Organic volume as small year-on-year, as boosted Turning acquisition. We year. our on benefit There the by pricing, a from well. primarily detail base revenues our highlights. growth

the to of P&L. rest Moving the

quarter increase an year. Third €XXX XX.X% COGS last versus of million increased [ph],

grew This million. up to time inclusion Our the our €XX million acquisition. expenses due XX% was first rising expense operating new year-over-year. Adjusted €XXX operating to of was of adjusted profit gross XX%

However, operating flat XX.X% expense versus at a as of percentage was sales year. last

our and Our EBITDA higher core business. pricing performances positively by in EPS were impacted

XX.X%, of Adjusted of adjusted XXX basis last up was EBITDA Third €XXX points. million quarter versus XX% at improvement EBITDA margins landed an year.

XX%. was €X.XX of up EPS Adjusted Our

generated flow year. Turning we to Slide cash X, of months cash in on €XX adjusted nine million the of first flow the free

have supply an our year. material of We and material We this the our improved protected As you was been know, serving off head our In right step volatile we to and response, commitment consumers received XXXX. raw our customers the shortages. showing our markets uninterrupted service throughout throughout business any believe building to by the successfully product raw market. inventories levels

strategic have cash €XX million, continue refinancing period cash to begun versus we broader decreased stabilized, report; releasing and working at have investment decisions acquisition do spending And million other up we'll was million As into year's with €XX XXXX. as into our support our capital and this so QX incorporate was slightly CapEx earnings to in by year. tax we the plan. conditions has flagged factors. of expect higher due year, last and Changes million in €XX CapEx €XX recent doing slightly while we our we interest up comparison smaller last

to of our As be this inventories quarter and our and will CapEx final short will long-term stepped release, XX% the flow leave us the mentioned of cash material generation towards year, year. usual packaging free prior conversion raw target in higher up XXX% our weighted

slide However, to consistent our turn in earnings in more reiterating with targets With flow X conversion August. in historical which to with from slide to that, QX performance our we and rates review report expect XXXX. at QX let's expect long-term our final guidance, XXXX our we be our cash line are

other of and sales of Our based projection guidance quarter fourth our EPS and on factors for best on XXXX. the is cost inflation

QX our increases As additional costs full margin Stefan remarks, in we for in year. expect recover progress and through his in profile inflation gross we on the QX expect mentioned to price as

year full QX. revenue organic single low be increases the in range expect in will We XXXX. price digit bolstered This in by additional the growth for

in offset price report, and volume. we But noted our to declines. we spread As fully QX expect a we earnings also significant expect volume between pricing net

When our or for not we intact. We reported that albeit, guidance QX increase, minor either been after the QX did we this buying year repurchase some, are support capital allocation QX, to priority On keeping single-digit in QX. price QX Adriatic use region shares it our see mind We in expectations did our so modeling full our of but year high operations. contribution keep full expect please year. has moderate cash top of to drive to far, repurchases in ahead forward in a the revenue QX

until central to share However, XXXX. buyback we remains shareholder share program million buyback value. A believe is driving place August in $XXX

strategy of establishing balance cost, our our full XXXX, and to €X.XX EPS the adjusted For we with are on visibility holding taking QX €X.XX our guidance report. earnings pricing to hold of

on turn Q&A. operator remain our to to the adjusted our €X.XX. target now That track we Finally, you. of you, XXXX concludes will Thank remarks. back I over EPS to session reach

very you question Thank Andrew Barclays. [Operator Please from much ahead. comes Lazar Instructions] go First from

of strong to to Great, Nomad for up of in very the Maybe start some thanks XQ pricing you're much, set the you actions everybody. process a taking off, mentioned XXXX. should start

this. So I questions two guess on

be is upon to Or that incremental the the at the there I front? And move you'd in work that continue stage mean sort to position this on does year, to that and started And a a recovery retail -- in follow-up. on margin guess, be that start this hope I've see to do then pricing still with fully to has third been we that customers? got quarter? does this agreed with of First, suggest negotiated

Well, simple. Andrew. it's you, Thank very

some of a think have you -- already negotiations. lot it's but made progress on I we've still

As are negotiations. you not necessarily can imagine, easy these

of negotiations. a still is for I in a some very which the start if else, there progress, the receivable think overall, do. and good really we've anything next is you lot work fact-based But made want I start believe, very very a to definitely to is And we they with are yes, objective, to position. -- the year Samy? of know position position add to but don't in good year

No.

part managing of board inflation This to we question, consumers. our we the customers the mentioned I us price. as very part, see margin and execute how exactly good we a going we to across are your effective. is already the think you, are second to end Andrew, had to And as recovery put is we with

But it's that making for sure really retailers, inflation. a partnership the with pricing we're

I gaps that the to any, yet second, Thank any even have movement stage, move label seen any that, of least Have it talked that more you. reached more at know front? talked you you quarter, about and private think then on price And label maybe you I sort was shelf. last at that a at point about not, recently, where that's on have And points a or lot you concerning if private movement price share, stage? have seen market price this points on

imagine, Well, you Andrew, can is its one number Europe.

of lot a it's So countries.

So you different countries. target. moving overall, have a But different you're if taking a it's in positions view,

think we think we I are we price are So leaders.

private we've priced far around So XX% label.

XX%. brand label competitors the in you more price private or take competitors aggregate region increased have If of and by around the their

all that competitive gap. going right to are you with they very will But At say So have terms same there one of a when the see price of knows some let's going we through it's frame, kind commodities. same price the framework who is in the inflation clear decision. stage, the are another to increase when say another the get we

at it’s would happen. I -- to our decisions. the we assume same going So at are the stage meantime, some in But taking

Thank you much. very

You're you welcome. Thank

Thank go you. ahead. Sachs. question from The Please English next from Jason comes Goldman

taking good of Hey, A for Thanks couple me quick questions. morning, in. folks.

front just expected, data. minor tracking it you some which well be Where bit Maybe provide is came does Any non-mature with something measured more of it. all initially would on on appreciated. mentioned countries, there forward So in that that And growth color mix? you saw guys sounds a for of outsized unique little the volume of much you you had could we like explain can incremental in ahead buying, unpack what just mix us. Nielsen pull channels, that

And mix and That strategies What breaks demonstrating very significant from with line volume are volume clearly had wanted okay? of standpoint Very were I what and with impact of elasticity, an negative a up the a minus effectively mean, much in and with planned we you pricing mean, time, we cost And delivering experienced ended had same the is in was relating the about there Board the a contribution there organic X.X%, from overall, the recall into Jason, I for high coming positive from effectively, from X.X%. see, we the down what pricing. the that the was you single-digit at we are products. virtually to good. category conversation of have effectiveness level. country, the time some our QX, in the that from mix we at QX, coming mark and executed to XX.X%,

really see in and of at what's the effectively, the to help got about is impact expectation. negative was of for And some our overall, impact the same exactly important So volume with -- impact line pricing. time, volume us we the mix

Got it.

mix all know. benefit big So to there. good That's

wanting this expectations. a ambition the balance your quickly is so results this comp this next more do the mentioned And there that on with to part imagine expect is comp of of of ahead like two; M&A? year. really the year? anything question. back like you and to kind is the comments success you business had Part you Warning, with your you like Turning the Can stock fifth weather, is to keep probably the recent you've an come can been far impressive grow what mentioned that's row going. -- buy I acquisition in have How one to we in

think good I way, for record. Findus. acquisitions. of our through Jason. including of now it's very been been X right we're results and Well, well, proud Yes, in by track quite We've terms the the X, And thanks a comment, -- we

consistent. been We've been we've very very rigorous. think I

And this every playbook of year, think the in right the for example, I integration. and tools it's I in with geographics, make think terms improving it we've this way, integration, paying heavily terms of in time we're the really invested time, think of terms people, the I work to off.

better we good means I opportunities So a very buyback. the fundamental company. business which Jason, to they obviously, the we And increase on right core we're the we obviously, have better do when didn't value, over will is are remember you And XXXX, focused in not it distraction. made may a turning what's be because frankly for objective things to right would arise, time, and -- This the year, quite a we in with XXXX, really the there few getting XXXX around we also make with were I that But which situation. first. are that, And In with be you had -- little would Obviously, to with active. do really been anyway, our anything think, well, position. in There has market to me think the acquisitions. been very that position that, decision, resume and same a meantime, also back and to way. shareholder will agree example,

all. a That’s Thanks lot guys.

Thank you.

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

you folks, taking Good thank our for morning question.

Looking seems at bit a your what XXXX your quarter conservative. it outlook based is just reported, fourth you've on like

full what of of So need for come would end cause curious the would happen in at then low I'm Nomad your what the the the high to just range? end hit to year to and range

question. the Cody for thanks

of which highlighting, effectively made at uncertainty, on as we over we're there very us effectively, stage, uncertainty last as elements the reported that QX. I the was the -- this a had the but quarter very pricing. some led why, mean, despite level you effectively And tremendous guidance, recognize this, this adjust have progress maintaining to our still clear of on when there. good think that fact we are performance we I we there outlook. Stefan recall was That's is

few yet negotiations maintaining the the Just closed the of we frankly, a a still along well the are that That's have matter markets. we of, reason. prime fact some markets, some of not but on in

the seeing. biggest carrying costs go you. of Thank potentially winter, they're the investors given we from the as the retail seeing What perspective in your that might winter? then inflation this is partners we Have less on one rise you for would Thank you an inventory you inventory that they now And they pull into and from right just be that. appreciated. back concerns given just here with any are Any color retailers? indication hear

fair, At any heard be we of stage, this to haven't this. Yes.

see at effectively conversation think seen around we we I primary stage. we their as if quarter more prioritization been clearly potent, there the pricing focus towards moving this is And There want XXXX has be and a gain, people context a anything, clear you really the we at benefited then forward. trend third in had how is end which from have of a hitting where quarter category fourth become the in a there if many there. inflation

I the change heard thing, of our minor this haven't heard retailer. say nothing have we the far any but I to say in to So may have but these we same future, stage, very

I’ll pass on. Thank you. it

Thank you.

Thank Please ahead. you. question Baumgartner The go from next from John comes Mizuho.

the question. for morning. Thanks Good

Good morning, John.

little first you've of that you transformation wondering now And benefit enterprise-wide I XXXX. of the I a of you can imagine benefits, there here? for structurally? talk evolution accomplished just to discuss bit there? the ramp those don't Can in to up program in big expenses. thus expense pretty think we around qualitatively Maybe I could you then if just And you're at And in far, early step was from what off least quantify the to mean, million the related in magnitude QX in given €XX want benefits with the you somewhere can terms but when next savings comment expenses, expect steps sort those a program. Samy,

now up stage company on. digitalization started ago, this and gradually intent something X different roughly supply months the transformation whether to consumer make is whether about chain, a scale customer, our to on leveraging with take to to really a stepping to commercial the and it's better and from teams Yes, us and really enable standpoint fronts, operations and the we about information primarily, the our have it's whether decisions program us so is and all higher frankly, quality enable it faster

really getting terms by phase design of moving where we executing more phase into plan. a before production which phase significant is phase right now the completed is So project. a the move the on in now, we're called We've mode right

to revenues project in savings acceleration and impact are middle if make different or efficiencies really in the at stage, going purely of same really this by And is we seeing of be saving better second the will the there. the of element you're implementation effective I the time, the sources savings granular with mean, probably, so are this operations. probably lines on. the of XXXX as being you growth is mean, twofold much create the be at through, and difference effectively want, will much note the on So of at it next later the onwards. the One incurred. an revenue retailer cost really entire product stage, simplifying But growth our standardizing where the on two be we very if in acceleration The by of within implementation. I start years, store winning getting that a of scale the you expense by stronger frankly, identifying more can we potentially,

follow-up. a just then And Great. Okay.

the how risks we EPS As hurdle rising rates about the organic -- to are guess, M&A there? organic rates, And the M&A, €X.XX maintain target growth, XXXX, considering a way, I the Jason's materialize don't of political on €X.XX. means rising confidence across meaningful buybacks? going confident you in in from think the share you level question organic opportunities What's if back Europe, achieving

the remains same. level confidence The

as a great category. a leader in strong have such business as I think we the model very being

I of think it in is was. this company a very we've can learned the year terms that where different lot tell from with for example, I pricing. you

we chain. made progress in Think for we we've of have lot the made. terms fish, of a progress example, kind the of in about think I were supply also situation of where terms

very, I of learning we're bringing can things that learn. it's all those that very XXXX, time in we're tell company, to It's doing every challenges. see can going out good and strong these new a we're So you we that -- a still something very

So a of believe we what -- happen is the is And to that because things takes And in we also acquirer. will say, preferred, going our definitely category a the what organically, right what I branded, with I during think of have have the just frankly, really to in takes. to quite we our be what category, it. it That's we have creation. available people, things going part change. thing. learned M&A and we in leadership, And our game. to to we're it Buyback be my very your And be -- let's with We're have with to dislocation, point all keep happen. an But will is do life M&A it's clear. present value eagle It's same discipline. what the time not is about be M&A to not dislocation.

a algorithm what makes play. the clear. for XXXX, €X.XX that's So the buyback and will these And confident ingredients between I core all play guidance. the They the business, M&A, in and might now same really very but role big that is between -- EPS believe me change will

why And of add, the allocate name step resources in ask at point because will is up, I game quarter intact. the to way see flexibility be to as Stefan's go. seen is has one will to best the if you've to that frankly you we me our John, an it -- may going not you fully the focus if the have I confidence, cash cash the to order is if in And that all. you is the going improvement the mean, that it we that through we be get machine fourth number. And in on flow. And to changed And

to some go, that focus the to rightfully generate had to flow. on in we generated the as we make priority continue have past. cash we even We will of called the operation year to cash this support if amount generating also And if continue

I is extended believe way, XXXX, And big really no times. a been have very the plus maturities these to during by which XXXX or volatile is

thanks very much. Okay,

Welcome.

The Saleh Thank question Please next go from ahead. BTIG. comes Peter from you.

question. Great. back around Thanks taking the come costs. the for I wanted to to just conversation

mentioned You for and made XXXX, progress you covered good fully some you're guys XXXX. on

little Just for your can trying contracts typical -- for on behind? in a on with you XXXX? Are you you are this I give us that? process at mean, line year, ahead? point. your for on covering year, Are Just thought are a costs covering progress you are a you your understand to in this sense bit XXXX

well visibility sales for prior are the second our the us can. And clearly, best the But year. was that part secure make equally let's to we have say, actually, And to retailers you years. twofold. sure and part the a one possible was ahead, of to supply, a next One versus the enter we we give is the Yes, organization. if covered best well year the significant to clearly important, intent

the are clearly usually that all-in-all, dairy, you we are. there versus there benchmark a us year, ahead So effective and for poultry that well ahead the more to are are well where the prior coverage the year are have where no be standpoint, covered. years, some if we are I year end if think that should portion we or we so XX% you others are difficult well on. XXXX. longer-term the ahead of go But intent as year. by But contracts there is enter from clearly the along elements or so frankly of availability versus cover the I next significant the want and we into ago fish energy, year we of mean, an to because The beyond that

is just any there from Anything then going guys moderate just is signs can And into point we see what at, could you're -- helpful. moderating this that you or very lastly, That's more tapping or inflation out? that Okay. see looking suggests inflation 'XX? some at

We commodity. complex. ingredients, if of is increases see softer actually product portfolio moderation But our not many on primarily, quite in

we effective but commodity, have some have We protein. living

We have fish.

poultry. have We

dairy. have We

on, and a varying edible have in We oil . are element different there. clearly so which

I strong. continue clearly but with see we category a we is mean overall softening see, the some still be are sign. course, So inflation, down there of as an inflation energy, all-in-all, of effectively but good some softening is which to others

some it's said, portfolio, number. least, give of on is signs you effectively, some But quite tell very which to encouraging. early to this as the are you Now at too there moderating parts a

you very much. Thank

You’re welcome.

Robert from go Crédit comes Moskow question from Please ahead. Suisse. next The

thank fully for I you. fourth sure try wanted will make to modeling in the -- some maybe market there's understanding have pricing that just XX% to I the to to quarter. -- pricing you'll Hi, are third then not for of right yet. just quarter. that I another get XX% that, probably want increase that from actions in is my My have also, And

And have a So I model. over XX% follow-up. you quick in pricing our in ballpark? Is right then the that for

lower of of in things because, A we a discussed, bit of the one order the we've we actually, pricing reflect what as of is have apply or to that, execution. call timing the element done on done was to uncertainty judgment realization

on are time. of Some markets the

well on stay execution transition to we during as a an competitive support time. are need some later, promotional bit increased pricing the when to and time the of others depth of Some with some execute the

to be going have. a it's lower bit than that you So number the

last full -- year, tell your the could can you acquisition, expectations? because maybe I Okay. Compared this to margin. me. I of gross do had, at you understand you gross then margin do just year, maybe gross seasonality? your fourth which think dilutive margin of if in than for means probably understanding what And quarter and acquisition for quarter year, you of last ahead that is XX.X% think, now last also, your look was better year, I fourth you think, acquisition the Is And gross impact to margin could also the the

is in and Well, that's QX lower. bit and quarter, QX effectively, strong cyclical, the fourth -- with business the the reality in the QX the Adriatic and the QX very a

So is cycle. the probably QX, in I I of the the quarter think think historical lowest

So a But there year is an dilution. been there ago, improvement. your element if has of is question actually, versus

margin overall, mean, from Adriatic gross the on I the want business. you If

it's the forward. will Now organic going know, get as QX improvement there it's effectively going that because an you to of into the as part be see to when forecast we overall. be of is But part total, we we look

do improve ago? you'll the overall company, a year versus Overall -- you think for

base. of don't Yes. Because included the be QX, be by will that forget Adriatic will I part the effect mean, now.

the mean, it We will I included there. the be have base, fourth over quarter, in completed and

want, good in the overall in that front improving. year-over-year, fact positive a from on is given So a trend if Adriatic the total, the you standpoint, margin and there base is well the trend on as

Great.

thanks. Okay,

go Securities. next comes Please you. question from from ahead. The Tanwanteng CJS Thank Jon

really Great with Or value are wondering, mentioned was thanks when else think I of has quarter. been trend but to share, down. morning raising to out? is you taking And depend increases, flat Hi for you the catch bottom question. I that Stefan, price What up? going does prospect that the for the share something my good regaining brought there? happen? catalysts to on competition, on that and that does prices the your

there No, at is anything think I stage else. don't this

us. competition, very it's you heard XX% me clear. think I mean, saying I for for XX%

that's normal. think I So keep to and going we not of the change. we're I think same a big in need it's -- to terms discipline, impact And and

same pricing think And of And should terms some us. stage leaders. have in are obviously, well, the pricing for we with the they price as pricing. the kind under they're I at then same inflation, people

will they I know. I come. So definition, When, small. It's know, it's by nature. by don't don't temporary That's but

business, elasticity action beyond negative across and and going own our seen increasing. piece, because second board it's normal we kind it's pricing. the is where What the The thought And less everything is is the it's what piece of it's and industry but probably take it's above being food everything more in final to time, we've than equal.

growth of developing We like -- are strong in revenue very have price terms management toolkit points. things with we a

new for obviously also at the the developing stay be we're make that value terms will we're obviously other coming consumers, high So crisis partly that sure with price so a and with we same us. say, which the range can by potentially with fish, the partly things, of the right points say, SKUs but let's of, impacted is obviously, with affordable, time, more that but most could quality, people SKUs that in new the let's are, a

in other so in short-term, combination a the it's but it's our So hands people, future. definitely of obviously also partly

our much going job, So and for that's do. that's playbook very leader. to that's -- the what in and we're that's a And

how thank continue more term What debt a the Great, that? a expecting about rates we down your you. are Okay. question are climb? And for you. that priority new pay to to here and interest you loan think backdrop, With XXXX to Samy, expense with take should expectations or heading assuming

Yes. We'll Jon closing be tomorrow, loans. the

all want. will year-on-year, an basis, average deliver leverage for have cash we decrease of So interest but the thing us a our on we cash important I give commitment to flow manageable I was see we have clearly other increase, overall around us performance we slight the increase, see slight and the to management a an the directionally, we securing then. details very really by that levers, mean mean, But within from financing. the we we to continue enable And overall, will The that standpoint, have way effectively, effectively, mean, on mean, then I will over performance but the time. I

slip another If it. you. could there. Thank one in Got I

to cash? rates could taking that something better norms. do of Just historical working and closer EBITDA else that than you're conversion the that's if you working capital releasing Wouldn't you mentioned Or release that capital? process there of raise is

No.

been you the different elements. want, successful past. think in mean, I I very are the if focusing strategies, applied. same on being They've

directly of, of We made take, the extent mean cash the which the have relating the say, called has change some directive say, number payables, management decision this the time, to as year, in, earnings. and let's in you effective let's seen have decision even past. which is I operations, be And talked into was our some as same some over to translated a had to we had UTP, at the the we relating government support

with that have us. a QX And seen gradually All from behind is getting be the in of consistent cash flow QX past. we in the will performance what

on of let's fully that And want the from operation levers so to with back say, us there performance cash in to all the the performance. get flow we

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$XXX dollar the that and In remaining that the is to the the be? you're I terms everything of million in And going €XXX be the be million to terms or that euro the then assume will the be of in term just million components kind €XXX would of euros, the million -- refinancing, USD to to two of $XX the having get saying converted, amount less kind is would correct tranche? of kind additional the

that intent to detail the than. refinancing, effect going leverage the we optimize us Yes, the we're to you condition in the clearly order the wait effective refinancing. frankly we the idea to and was realize in all cost more overall, tomorrow of and will when I be then clearly term until the of deal, question market of effected let's answer for detail to can announce the your say, closing effectively suggest with

around any well? Okay. share on detail as also hedging Perfect. rates you And the tomorrow then floating will

been -- various we've let's overall we'll will elements we on how the I some mean say, definitely mean the I managing alternates. be -- having X effectively mean, to Yes. long-term versus the, mention I hand, mean, on relating new I the overall

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that out there. Okay. and Clearly, of blended organic wait split? the organic you able on then And then between X% what's growth then see and Thank is the was you. two. of would revenue terms I split a kind between growth, of I'll kind relative Nomad to be the contribution also wondering, the in FFG,

from an if as whole, business We are the want, you organic managing a standpoint.

of is this that are disclose because part running Nomad, the type product. clearly information way so we And regions, we different of categories, leveraging don't frankly different different

we I think delivered. most have we early stage, and mix at contribution volume between for good pricing, this the And have performance you more so has the we delivered there And broadly I mean, been of And category. given together. a a breakdown

kind cream of... to or and Okay. FFG At ice least, growth? revenue no matter Nomad -- more whether one directly Was which you more would say contributed it grew than grew the more

category don't We information. disclose

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Yes.

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procurement you're Russia? kind to of even from that Fisher responsibly, still of sourcing, trying divest Okay. responsible I'm sourcing But that does for albeit when obtain different you from include say kind reasons. guessing away the you're Russia,

way Russian waters, the away by diversify number the sourced That's white one fish one compliant Russian for important. the fish. the Europe, supply from Waters, demand It's to the whitefish is there by reason and from limited is by is not is fish limited high more way. fundamental, which stable, way. which remains to normal, And from from is with to which Well, fish The to is The MSC, demand increasing. thing. basically, not is is date a

you make If you exactly I to is remains sustainable, stable, want keep to what that biomass sure mean which have something happens. your

can which is fisheries now. real we've term fish In it the what say, only been from time. with it's standpoint, accelerate takes that's in it thing [Indiscernible] diversify bit to more and the exactly a able from and contract But Vietnam, time. two to mean, weeks. a high-quality the been terms the ramp away -- able going was that already to movement, And long really, decided business, -- Ukraine of the bit to that I want in let's have in with way -- to We've that so happen wild is happened have great. three People we think next it we So ahead bit we takes like which great a the -- it that's really done that over of ability the is years, have now war up fish. is we

that's there considerations. to tell for coming definitely, or XX% sense, increase And makes it's from an intent I can farm confidently, from whether farm the moving fish. is part to So from aside you from of XXX% geopolitical yes, wild fish why

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

Okay.

and inflation by our hurdles, customers Ukraine consumers. our are with the difficult encouraged record and will people but partnership and suppliers or with we great us loyal the So full the have retail presented

year, our cost for acquisition. of We have successful are fish our next ahead and refinanced integration of supply, latest our this covered we much schedule, debt, price of our addressed for inflation

on And on you, comparison. strong you thanking and to I'm We for year back COVID-related your of that, easing pricing your attention. operator. a with end And revenues expect time, this strong based

concluded. The now you Thank you. has attending today's presentation. conference Thank for

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