Nomad Foods, the owner of Birds Eye, Findus, and Aunt Bessie’s, has signaled a price increase after posting disappointing first-quarter results, majorly due to tough comparisons with strong demand during Covid-19 pandemic and “difficult” economic conditions.
As per recent reports, Nomad Foods’ organic revenues declined 4.5 percent after a 6.1 percent fall in volumes was only partially offset by a 1.6 percent increase in prices.
Higher raw material costs and the inclusion of its Fortenova acquisition, which has gross margins below that of the rest of the business, have also dented the profit margins.
Chief Executive Stéfan Descheemaeker stated that the business had “performed well against strong pandemic comparisons and a difficult macro backdrop,” noting that the war in Ukraine had created “dislocations across our supply chain”.
“In our first quarter results, we performed well against strong pandemic comparisons and a difficult macro backdrop, proving the resilience of our business model. The Ukraine conflict created dislocations across our supply chain, and I am proud of how well our team delivered under these difficult circumstances.
“We have rapidly adjusted to inflationary changes in the market and plan to recoup rising input costs through more price increases this year while remaining hedged on key inputs for 2022 and beyond,” he added.
The financial results came after Nomad Foods called on the food industry and regulators across Europe to consider a more comprehensive, end-to-end approach to Life Cycle Assessment (LCA) studies, which includes food loss and waste impacts, to improve transparency for consumers and drive critical action to reduce carbon emissions.