Birds Eye owner continues volume growth

Nomad Foods, the parent company of Birds Eye, Aunt Bessie’s, and Goodfella’s, has reported a second consecutive quarter of volume growth, showcasing resilience despite disruptions caused by the rollout of new Enterprise Resource Planning (ERP) software.

For the third quarter ending 30 September, the frozen food giant posted a 0.8 per cent increase in total revenue with organic revenue rising 0.3 per cent. This growth was underpinned by a 0.7 per cent uplift in volume, continuing the momentum seen in the previous quarter. However, the ERP implementation challenges, which impacted service levels in some markets, were estimated to have reduced growth by approximately 2.5 per cent. The group also recorded a slight decline in price/mix by 0.4%.

Nomad’s return to volume growth in earlier quarters was driven by a strategic focus on advertising and promotions, which successfully attracted consumers following a period of significant price increases. Nomad attributed this improvement to supply chain productivity gains, a positive product mix, and reduced promotional investment as the company managed inventory during the ERP transition.

Stéfan Descheemaeker, Chief Executive of Nomad Foods, highlighted the strength of the European frozen food category and the company’s ability to regain volume and value share in the quarter.

“Our higher-margin Must Win Battles and Growth Platforms continue to drive growth,” Descheemaeker said. “Revenue growth management and productivity programs, combined with favorable pricing dynamics, fueled margin expansion, allowing us to reinvest in the business.”

Co-Chairman and Founder Noam Gottesman added, “The improved underlying trends validate the new commercial flywheel and innovation framework we adopted last year. Despite curtailed support levels due to ERP implementation, we’re seeing strong progress, and the innovation and marketing plans ahead are exciting. These strengthened fundamentals give me confidence in the sustained momentum of the business.”

While the ERP-related disruptions posed temporary hurdles, Nomad Foods’ continued investment in marketing, innovation, and operational efficiency positions it well for long-term growth. With volume growth restored and gross margins at record highs, the company is looking ahead to capitalize on its improved market position and the resilience of the frozen food category.