Nomad Foods Limited (NYSE: NOMD) witnessed a robust upswing of 14.12%, concluding the preceding trading session at $16.25. This surge in Nomad Foods’ stock value was propelled by the disclosure of its quarterly financial performance.
Yesterday, Nomad Foods (NOMD) divulged its fiscal outcomes for the three and nine-month periods concluding on September 30, 2023. Throughout the third quarter, Nomad Foods sustained the upward trajectory of its organic sales, amassing revenue amounting to EURO 764 million, building upon the positive momentum established in the first half of the year.
Notably, in September, NOMD initiated an intensified Advertising and Promotion (A&P) investment initiative through a compelling media campaign. This initiative was further complemented by an extensive in-store promotional program, strategically positioning NOMD for sustained, enduring growth in both volume and market share.
In light of its operational performance in the third quarter, share repurchase endeavors, and optimistic outlook for the remainder of 2023, Nomad Foods revised its Adjusted Earnings Per Share (EPS) guidance to a range of EURO 1.57 to EURO 1.60, compared to the previous range of EURO 1.54 to EURO 1.57.
Nomad Foods demonstrated consistent success this quarter, showcasing a continuation of its organic revenue growth trend. The alignment of its financial, commercial, and supply chain strategies with anticipated outcomes has significantly contributed to this achievement.
In the course of this quarter, NOMD executed a share repurchase of EURO 65.8 million and remains steadfast in its belief that its shares present a substantial opportunity for value creation. Additionally, Nomad Foods approved a new share repurchase authorization of $500 million, replacing the existing program set to expire at the close of this year.
In tandem with its capital allocation strategy, NOMD aims to introduce a regular quarterly dividend in 2024, pending board approval, with specifics to be disclosed early next year. This dual approach, encompassing a new share repurchase program and the introduction of a dividend, underscores NOMD’s unwavering commitment to optimizing returns for its shareholders.
