NOMD - Nomad Foods sees 7.2% organic revenue growth in Q3 over higher prices plans refinancing

• Nomad Foods ( NYSE: NOMD ) is up 3% on Monday after the company posted 7.2% organic revenue growth in the pre-announcement for third quarter results .
• The United Kingdom's frozen foods company said it estimates third quarter revenue to rose 26.7% to €760 million where organic growth accounts for 7.2% comprised of a 3.4% decline in volume/mix offset by a 10.6% increase in price.
• Gross profit increased 31.9% to €221 million. Gross margin increased 110 basis points to 29.1%, driven by higher pricing offsetting higher raw material costs across the business.
• Adjusted EBITDA increased 35.3% to €153 million while EBITDA margin improved 130 basis points to 20.2%.
• Guidance Reaffirmed: The company said "We are reiterating our full-year 2022 Adjusted EPS expectation range of €1.65 to €1.71. As we recover our margins to longer-term levels and focus on maximizing our input cost coverage, we are positioning Nomad for sustainable growth into 2023 and beyond. We remain confident in our ability to deliver our €2.30 Adjusted EPS target for 2025."
• In a separate press release , Nomad Foods announced the proposed refinancing of its existing USD denominated Term Loan B with lender meetings scheduled later this week.
• It comprises of the company's existing term loan of US$960 million principal due mid 2024 and US$825 million seven-year term loan.
• Nomad Foods said it intends to use the proceeds for refinancing and for general corporate purposes.
• Earlier: Nomad Foods is tipped by Mizuho to be a food sector outperformer

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