Management characterizes 2026 as a transition year focused on enacting organizational changes to drive long-term growth potential starting in 2027.
Revenue guidance assumes a decline primarily due to temporary disruptions and retaliation during annual price negotiations with European retailers.
Cost inflation in the Fish category is necessitating price increases, which management expects will lead to a temporary volume lag as competitors typically follow with a delay.
The company is shifting its strategic focus toward ‘point-of-sale disruption,’ utilizing superior packaging and more aggressive in-store animation to differentiate from private label and branded competitors.
Growth in the potato category is expected to serve as a partial offset to volume pressures in other segments.
Management attributes the resilience of the frozen food category to its ability to outpace overall food growth in key markets like Italy and Germany.
Management expects a return to growth in 2027 and 2028, though they declined to provide specific numerical targets until an Analyst Day scheduled for later this year.
Price negotiations with the majority of European retailers are expected to conclude within the first quarter of 2026.
The company plans to roll out product innovations, such as a new coating for fish fingers and the expansion of the ‘Chicken Shop’ brand across Europe, to justify price differentials.
Capital allocation priorities remain focused on organic growth investment, with share repurchases continuing while the stock is perceived to trade below intrinsic value.
M&A is viewed as a potential future lever if market conditions shift and valuation gaps between the company and targets narrow.
Management addressed reported IT and digital system disruptions regarding illegal fishing catches at European ports, clarifying that these have not impacted Nomad’s supply chain.
The CEO and CFO announced intentions to make substantial personal share purchases in the coming weeks as a signal of confidence in the business’s long-term trajectory.
Significant investment has been factored into the current year’s plan specifically to strengthen retail relationships and point-of-purchase execution.
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Management is guiding for a net sales decline driven by negative volumes due to price increases in Fish and negotiation-related retail disruptions.
Price and mix will be positive contributors, but will not fully offset the volume impact during the transition period.
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