Nomad Foods Ltd (NYSE:NOMD), the frozen food company, stock rose 2.04% (As on March 5, 11:19:14 AM UTC-4, Source: Google Finance) after the company reported better-than-expected fourth quarter results and raised its full-year 2025 earnings guidance. The company reported organic revenue increase of 3.1% was driven by a 1.6% price/mix decline offset by 4.7% volume growth. Gross profit increased 9% to €226 million. Gross margin increased 120 basis points to 28.5% due to a positive product mix performance as the company invested behind the core most profitable Must Win Battles, and improved supply chain productivity. Adjusted operating expenses decreased 3% to €114 million due to lower A&P as we cycled a sharp increase in 4Q23 and benefited from a more even investment cadence through 2024. Adjusted EBITDA increased by 17.6% to €137 million and Adjusted Profit after tax increased 28% to €67 million.

Meanwhile, the company has significantly strengthened the innovation engine, increasing our innovation as a percent of sales year-over-year, while executing more impactful merchandising programs that resonated with consumers at point-of-sale. Importantly, the company accomplished this while expanding margins through a combination of supply chain productivity initiatives and focused growth investments that yielded healthy mix gains.

NOMD in the fourth quarter of FY 24 has reported the adjusted earnings per share of €0.42, beating the analysts’ estimates for the adjusted earnings per share of €0.38. The company had reported the adjusted revenue growth of 4.3 percent to €793.4 million in the fourth quarter of FY 24, beating the analysts’ estimates for revenue of €792.81 million.

For the full year 2025, Nomad Foods raised its adjusted EPS guidance to €1.85-€1.89, up from its previous outlook of €1.81-€1.85. This implies 4-6% growth over 2024.

The company continues to expect 1-3% organic revenue growth and 2-4% adjusted EBITDA growth in 2025. Management expressed confidence in delivering a 10th straight year of sales and profit growth. Adjusted EPS is now expected to be €1.85-€1.89, implying growth of 4-6%, versus the prior outlook of €1.81-€1.85. Based on USD/EUR exchange rate as of February 25, 2025, this translates into 2025 Adjusted EPS of $1.94-$1.98. The Company also continues to expect full year adjusted free cash flow conversion of 90% or greater.

Nomad Foods returned €208 million to shareholders in 2024 through dividends and share repurchases. The board recently approved a 13% increase to the Q1 2025 dividend.