Leadership Change Ushers in New Era (Image Credits: Pixabay)
Europe’s prominent frozen foods provider Nomad Foods projected further reductions in sales and earnings for the coming year as its recently appointed CEO launches a comprehensive transition effort.[1]
Leadership Change Ushers in New Era
Dominic Brisby stepped into the CEO position at Nomad Foods last month, marking a pivotal shift for the company. He succeeded Stéfan Descheemaeker, who retired after steering the firm for 11 years. Brisby arrived from Flora Food Group, a dairy-alternatives outfit, bringing fresh perspectives to the frozen foods sector. Nomad Foods owns well-known brands like Birds Eye and Iglo across Europe. The executive transition occurred amid ongoing challenges in the market.
Brisby exerted no influence over the latest annual results, which the company disclosed recently. Previous leadership had initiated a €200m cost-savings initiative set to run from 2026 through 2028. Questions linger over whether the new team will maintain that trajectory. Investors watched closely as Brisby outlined his initial priorities.
2025 Results Reflect Mounting Pressures
The company recorded softer performance for the 12 months ended December 31, 2025. Organic sales declined 1.9% to €3bn ($3.54bn), driven by a 1.4% volume drop and 0.5% weakening in price/mix. Reported revenue fell 2.2%. Adjusted EBITDA decreased 7.5% to €523m, while adjusted earnings per share slipped 6.7% to €1.66.[1]
Base profits tumbled 39.8% to €137m, hampered by €57m in net-of-tax losses from fourth-quarter debt refinancing. These figures underscored persistent headwinds in volumes and pricing. The results prompted a guidance cut earlier, even as cost-saving measures took early shape.
Stern Outlook Defines Transition Year
Nomad Foods issued cautious guidance for fiscal 2026, anticipating organic revenue to shrink by 2% to 5%. Adjusted EBITDA faces a projected 5% to 10% reduction. Adjusted EPS could fall another 4% to 13%, landing in the €1.45 to €1.60 range – or $1.71 to $1.89 based on recent exchange rates.[1]
| Metric | 2025 Actual | 2026 Guidance |
|---|---|---|
| Organic Sales Growth | -1.9% | -2% to -5% |
| Adjusted EBITDA Growth | -7.5% | -5% to -10% |
| Adjusted EPS | €1.66 | €1.45-€1.60 |
This forecast positions 2026 explicitly as a transition period, with risks of greater shortfalls in key metrics. Management highlighted the time needed to enact changes effectively.
Overhaul Aims to Unlock Potential
Brisby emphasized organizational improvements to boost performance and value creation. Efforts will target streamlining operations for greater speed, agility, focus, and accountability. “We have a number of opportunities to address in the organisation, and we will be focused on these in the coming months,” Brisby stated. “We continue to streamline the organisation to increase our speed, agility, focus and accountability. We believe we can and will deliver better results but we anticipate 2026 being a transition year as our financial outlook reflects the time required to implement and manage change.”[1]
Co-chairman and founder Noam Gottesman expressed optimism about early progress. “While it has only been a few months, I am encouraged by the rapid changes being implemented at Nomad Foods and the multi-year vision that is beginning to unfold,” he said. “Dominic and his team have a lot of work ahead of them, but they are starting from a good place.” Brisby added, “We have work to do to unlock our full potential.”[1]
Key Takeaways
- Nomad Foods expects continued sales and profit erosion in 2026, framed as a necessary transition under new CEO Dominic Brisby.
- 2025 saw organic sales drop to €3bn, with adjusted EBITDA at €523m amid volume and pricing weakness.
- Strategic streamlining targets long-term gains, though near-term pain persists.
The transition at Nomad Foods underscores the realities of reshaping a mature frozen foods player in a competitive landscape – forces that demand patience from stakeholders. As changes unfold, sustained execution will prove critical to reversing recent trends. What are your thoughts on this strategic pivot? Share in the comments.[1]
