Nomad Foods (NYSE:NOMD) executives said first-quarter category growth came in ahead of internal expectations, while pricing negotiations caused some temporary disruption in key European markets that management said is now largely resolved.
During the company’s first-quarter 2026 earnings Q&A session, Chief Executive Officer Dominic Brisby said the frozen food category grew 3.8% in the quarter, stronger than the company had expected. That helped Nomad Foods deliver top-line performance “slightly better” than planned and drove upside through the profit and loss statement, he said.
Pricing Disruption Hit France and Germany
Brisby said Nomad Foods had expected some disruption as it implemented price increases, describing that as a fairly normal occurrence in many European markets. The company experienced disruption primarily in France and Germany, which affected both sell-in and more recent sell-out performance.
According to Brisby, “a couple of retailers” temporarily suspended orders for some products and canceled some promotions. That created out-of-stocks, and when combined with lower promotional activity, negatively affected market share in March and continued through April.
Brisby said the issues had been anticipated in the company’s full-year guidance and are now behind it. He said Nomad Foods has secured its planned pricing, shelves are being restocked and the company has “robust promotional plans” across its markets for the remainder of the year.
Chief Financial Officer Ruben Baldew said the pricing disruption will still flow into the second quarter, specifically in April, but shipments were “fully back on” from May after negotiations closed. He also said some shipment timing around Easter may have a modest effect, and that the lag before private label competitors raise prices could create an elasticity impact in the second quarter.
Management Sees No Consumer Pullback in Frozen Food
Baldew said the category remains healthy year to date, with 3.8% value growth and volume growth of 1.5%. He said management is monitoring inflation and geopolitical uncertainty, but at this point does not have data suggesting consumers are trading down in a way that would reduce the overall category.
Brisby also said Nomad Foods has not seen evidence that consumer demand for its categories has been hurt by the conflict in the Middle East. He said the company’s categories provide value for money, which has historically made the business relatively insulated from economic volatility compared with some other food companies.
Inflation Risks Called Manageable for 2026
Asked about energy costs and broader inflation tied to the Middle East conflict, Brisby said management is viewing the issue through three lenses: supply chain disruption, consumer demand and cost inflation.
On supply chain disruption, Brisby said the company has seen no impact. Nomad Foods’ products are produced locally, and while procurement is geographically diverse, none has been adversely affected by the Middle East situation at this time.
Cost inflation is the area receiving the most focus, Brisby said. He noted that costs for fuel, fertilizers and resins have moved higher, but said the company’s direct and indirect exposure is manageable and that Nomad Foods has good coverage through most of 2026. Overall cost of goods sold inflation for the year has increased by less than 1 percentage point and remains within the company’s mid-single-digit outlook, he said.
Brisby said incremental inflation could begin to flow through the profit and loss statement in the fourth quarter and into fiscal 2027 if current conditions continue. However, he said the company has pricing and revenue growth management levers, as well as a productivity pipeline expected to generate additional savings next year.
Baldew added that much of the company’s commodity spend is tied to agricultural products, livestock and fish, which are more linked to seasonal dynamics than direct input costs. He said the potential indirect impact from fertilizer, fuel and labor inflation into 2027 is being monitored, but it is too early to quantify.
Private Label Pricing and Adriatics Outlook
On private label competition, Brisby said it is early because many of Nomad Foods’ price increases have only recently reached shelves or are still beginning to do so. Some private label players have already moved in certain markets, while others have not yet followed, he said.
Brisby said the company believes private label manufacturers are experiencing as much, if not more, cost inflation than Nomad Foods. As an example, he said many private label fish producers source double-frozen fish from China, where costs have risen more than other sources of fish. He described private label price increases as a question of “when and not if.”
In the Adriatics region, Baldew said the company is not seeing macroeconomic or geopolitical issues hampering the business, and execution and results are in line with plan. He said Nomad Foods expects a step-up in second-half profitability, including a positive margin mix in the third quarter, helped by an improved sell-out and sell-in of its out-of-home ice cream business compared with a disappointing summer last year.
Broader Portfolio and Retailer Relationships
Brisby said Nomad Foods will provide more detail at its analyst and investor day in the fall about changes to its portfolio approach. He said the company historically had a strong focus on products that could be described as healthy, but management now sees the company’s role as a broader “champion of frozen food.”
That could give Nomad Foods more flexibility to pursue commercially successful products, including occasional treats or products that are less focused on health positioning, Brisby said.
Brisby also said retailers are showing strong interest in working more closely with Nomad Foods as a leader in European frozen food. He said some retailer relationships had historically been “a little transactional,” and that management is now focused on joint efforts to grow the category. He cited the appointment of Simon Ball as president of the U.K. business, the company’s largest individual market, as part of the effort to strengthen retailer engagement.
About Nomad Foods (NYSE:NOMD)
Nomad Foods Limited is a leading frozen foods company headquartered in the United Kingdom, operating under the ticker symbol NOMD on the New York Stock Exchange. The company’s portfolio comprises well-known consumer brands such as Birds Eye, iglo, Findus, Goodfella’s and Aunt Bessie’s, covering a wide range of categories including vegetables, seafood, ready meals, pizzas and desserts. Nomad Foods focuses on delivering convenient, high-quality frozen products designed to meet evolving consumer preferences for taste, nutrition and ease of preparation.
Formed in 2015 through the acquisition of Iglo Group by investment firms Permira and Goldman Sachs Asset Management, Nomad Foods was created with the strategy of building Europe’s largest frozen foods platform.
