Nomad Foods profit tumbles as supply chain inflation and volume declines weigh on results

Nomad Foods (NYSE:NOMD) reported a challenging start to 2026, with earnings significantly impacted by persistent supply chain inflation and a pullback in consumer purchasing volumes.

The Feltham, UK-based frozen food leader—owner of iconic brands such as Birds Eye, Iglo, and Findus—reported total revenue of €715 million for the quarter ended March 31, 2026, a 5.9% decrease compared to the prior-year period.

Organic revenue fell 5.3%, driven primarily by a 4.4% decline in volume as the company faced a difficult consumer environment in Europe.

An additional 0.9% decline from price/mix, fueled by unfavorable product mix, further pressured the top line.

Profitability metrics saw a more pronounced contraction.

Gross profit fell 13.2% to €184 million, with gross margin narrowing by 210 basis points to 25.7%.

Management attributed the margin squeeze to a combination of supply chain inflation headwinds and the specific timing of price increases, which have yet to fully offset rising input costs.

The impact of lower volumes and narrowed margins flowed through to the bottom line.

Adjusted EBITDA decreased 22.9% to €93 million, while adjusted profit for the period plummeted 40% to €32 million.

Adjusted earnings per share (EPS) fell to €0.23, down from the €0.35 reported in the first quarter of 2025.

Reported diluted EPS stood at €0.20.

Despite the earnings pressure, the company maintained tight control over its overhead, with adjusted operating expenses remaining relatively flat at €115 million.