2025 Falls Short, Sparking Urgent Overhaul (Image Credits: Unsplash)
Europe’s leading frozen food company, Nomad Foods, signaled a period of deliberate disruption as its new CEO detailed plans to restore growth amid recent setbacks.[1]
2025 Falls Short, Sparking Urgent Overhaul
The company closed 2025 with underwhelming results that fell below expectations. Volumes dropped 1.4 percent, while price/mix declined by 0.5 percent, resulting in a 1.9 percent decrease in organic sales.[1] Adjusted EBITDA retreated 7.5 percent, and adjusted earnings per share deteriorated 6.7 percent.
Value market share eroded by 30 basis points last year, extending a cumulative loss of 190 basis points since 2021. Nomad Foods held onto its overall market share but struggled against intensifying private-label competition. Shares fell 9 percent following the earnings announcement in New York.[1]
CEO Brisby Targets Speed and Accountability
Dominic Brisby, who recently took the helm at Nomad Foods, described 2026 as a “pivotal year of strategic repositioning” to unlock the company’s untapped potential. He acknowledged past shortcomings bluntly: “These are not results that we as a leadership team or company can be proud of.”[1]
Brisby emphasized the strength of Nomad’s portfolio, including powerhouse brands like Birds Eye and Findus, which command a market share 2.3 times larger than the next biggest branded rival. Yet, he admitted the firm had been “too slow in recognising changing market dynamics.” The focus now shifts to greater agility, category disruption, and driving consumers back to the frozen aisle.[1]
Plans for this repositioning will feature prominently at the upcoming capital markets day, with specific targets to follow.
Pricing Emerges as Key Lever Amid Cost Pressures
Suggested pricing stands out as the cornerstone of the strategy, with “sizeable price increases” planned to recapture value. Brisby stressed providing “strong reasons to pay” for premium branded products, even if it means short-term sales turbulence.[1]
CFO Ruben Baldew highlighted risks, particularly in the fish category where industry-wide cost inflation persists. Retailer negotiations have seen disruptions, and competitors may follow suit with hikes, though price gaps could widen early in the year. Nomad anticipates volume declines due to price elasticity.[1]
- Inflation headwinds strongest in fish portfolio.
- Temporary retailer pushback in pricing talks.
- Strategy prioritizes long-term value over immediate volume.
- Aim: Step ahead of private labels through innovation and marketing.
Forecast Signals Pain Before Gain
Nomad Foods projected a 2 to 5 percent drop in organic sales for 2026, alongside adjusted EBITDA down 5 to 10 percent and adjusted EPS declining 4 to 13 percent. The year marks a deliberate transition, with recovery eyed for 2027 and 2028.[1]
The company remains committed to a €200 million ($236 million) cost-savings program launched by predecessor Stéfan Descheemaeker. Here is a snapshot of recent performance:
| Metric | 2025 Actual | 2026 Outlook |
|---|---|---|
| Organic Sales | -1.9% | -2% to -5% |
| Adj. EBITDA | -7.5% | -5% to -10% |
| Adj. EPS | -6.7% | -4% to -13% |
Key Takeaways:
- 2026 prioritizes strategic resets over quick wins.
- Leading brands offer a strong foundation for rebound.
- Pricing discipline could reshape frozen food competition.
Nomad Foods’ bold pivot underscores the pressures facing branded frozen foods in a value-conscious Europe. Investors and shoppers alike will watch closely as the company navigates this turbulence toward renewed growth. What do you think of this pricing strategy – necessary reset or risky gamble? Share your views in the comments.
