Nomad Foods (NYSE:NOMD) executives used the company’s fourth-quarter 2025 earnings Q&A session to expand on management’s 2026 outlook, ongoing retailer negotiations, and plans to strengthen execution in the frozen aisle across European markets. CEO Dominic Brisby and CFO Ruben Baldew emphasized that 2026 is expected to be a “transition year,” with near-term sales pressure tied to pricing actions in fish and temporary disruption from annual customer negotiations.
2026 guidance: net sales expected to decline amid negotiations and fish inflation
Responding to a question about the building blocks behind the company’s guidance, Baldew said the company is providing net sales guidance but is not breaking it out into volume and price. He nonetheless pointed to several drivers behind the company’s expectation for a net sales decline.
Second, Baldew highlighted that a “big part” of inflation is coming from fish. Nomad expects to take pricing on fish, and while management expects competitors to follow, Baldew cautioned there could be a timing lag. He described this lag as the “biggest contributor” to the negative guidance, because the company could see volume pressure while competitors are slower to raise prices.
Third, Baldew and Brisby said 2026 will include internal change initiatives intended to improve the company over the long term, acknowledging that “with change does come disruption.” Baldew added that while price is expected to contribute, the company’s commentary on price also includes mix effects, and he pointed to continued efforts to drive growth in potatoes as an offset.
Timing of retailer price negotiations
Asked for more detail on negotiations and how long they may run, Brisby said that for most European retailers, price talks are happening now. While there are exceptions “in certain markets and with certain customers,” he said management expects most negotiations to be concluded during the course of Q1.
Competition, private label, and strengthening reasons to pay
Management was also asked how share could evolve if competitors follow Nomad’s fish price increases. Brisby said the company has “no idea” what competitors will do on pricing, though it monitors the situation closely. He also emphasized that Nomad’s price gap versus private label is meaningful, and argued the company must give consumers strong reasons to pay branded prices.
Brisby outlined several focus areas discussed on the call:
- Product superiority: He said Nomad’s products have been superior and will become “even more superior” during 2026, citing the rollout of a new coating on fish fingers.
- Stronger brands and more effective spend: While noting brand equity is already strong, he said the company sees opportunities to be more effective in how it deploys A&P spending.
- Point-of-sale execution: Brisby reiterated that Nomad aims to be “noticeably stronger” and more disruptive at the point of sale than competitors and private label.
Retail environment: fresh vs. frozen and store-level execution
In response to a question about whether European retailers are shifting focus toward fresh food and improving private label quality, Brisby said retailer behavior has not changed dramatically. Instead, he described continued execution of existing trends: retailers want high-quality private label offerings, and fresh has been an important theme in Europe.
Brisby said Nomad sees opportunities to strengthen relationships with retailers and to create more “excitement and animation” in the frozen aisle. He cited “Chicken Shop,” described as working well in the U.K., and said he sees no reason it cannot work across Europe.
He also discussed packaging as a key lever, noting that because frozen packaging is generally not transparent, brands have an opportunity to communicate more directly on pack. Brisby said Nomad intends to be more aggressive on packaging and ensure it is not only better than private label, but also better than competitors and better than Nomad has been previously.
On investment levels, Brisby said some point-of-sale initiatives will require spending and that the company has factored significant investment into its plan for this year. Other improvements, he suggested, are more about being “more smart” rather than spending heavily.
Jason English, Head of Investor Relations and Corporate Strategy, added that the frozen category has been delivering growth for retailers. He said the category grew 2.4% across Nomad’s overall footprint last year and cited market examples including Italy at 3% and Germany at 4.5%. English said those category tailwinds create opportunities for Nomad with retail partners.
Supply chain question on fish: no impact from reported port disruptions
Asked about reports of IT and digital-system issues related to illegal fishing catches and potential disruptions at European ports, management said it was not an event for Nomad. English referenced reporting that certain programs or policies tied to the disruption had been temporarily suspended until resolved, and he described the issue as short-term and not long enough to affect Nomad’s business. He added that management does not believe the disruption impacted the broader category or competitors either.
Looking beyond 2026, Brisby said he expects the company to return to growth in 2027 and 2028 and described “tremendous growth potential” for the business. However, he declined to commit to specific targets while management is developing multi-year plans, saying more detail will be shared at an Analyst Day later this year. Brisby also said that he and Baldew plan to make “substantial share purchases” in the coming weeks, framing 2026 as a transition year with a positive longer-term outlook.
On capital allocation, Brisby said the company’s top priority is to invest in the business to maximize organic growth. Beyond that, he said buybacks have been a priority because management believes shares trade below intrinsic value, and the company still has an appetite to repurchase at current prices, balanced against leverage and liquidity needs. He added that M&A could potentially reemerge if conditions change, and said management and the board intend to allocate capital in ways they believe will maximize shareholder returns.
About Nomad Foods (NYSE:NOMD)
Nomad Foods Limited is a leading frozen foods company headquartered in the United Kingdom, operating under the ticker symbol NOMD on the New York Stock Exchange. The company’s portfolio comprises well-known consumer brands such as Birds Eye, iglo, Findus, Goodfella’s and Aunt Bessie’s, covering a wide range of categories including vegetables, seafood, ready meals, pizzas and desserts. Nomad Foods focuses on delivering convenient, high-quality frozen products designed to meet evolving consumer preferences for taste, nutrition and ease of preparation.
Formed in 2015 through the acquisition of Iglo Group by investment firms Permira and Goldman Sachs Asset Management, Nomad Foods was created with the strategy of building Europe’s largest frozen foods platform.
