Ladies and gentlemen, greetings and welcome to the Nomad Foods second quarter 2026 earnings Q&A session. At this time, all participants are in a listen-only mode. As a reminder, this conference is being recorded. I would now like to turn the call over to your host, Jason English, head of corporate strategy and investor relations. Thank you. You may begin.

Thanks, Max. Hello and welcome to Nomad Foods second quarter 2026 earnings question and answer session. We've posted the associated press release, prepared remarks, and investor presentation on Nomad Foods' website at nomadfoods.com. I hope you all had a chance to review them. I'm Jason English, Head of Investor Relations and Corporate Strategy, and I'm joined by Dominic Brisby, our CEO, and Ruben Baldew, our CFO. During this call, we will link forward-looking statements about performance that are based on our view of the company's prospects, expectations, and intentions at this time. Actual results may differ due to risk and uncertainties, which are discussed in our press release, our filing to the SEC, and our investor presentation, which includes cautionary language. We will also discuss non-IFRS financial measures during the call today. These non-IFRS financial measures should not be considered a replacement for and should be read together with IFRS results. Users can find the IFRS to non-IFRS reconciliations within our earnings release and the appendices at the end of this slide presentation available on our website. Please note that certain financial information within this presentation represents adjusted figures. All adjusted figures have been adjusted primarily for, when applicable, share-based payment expenses, related employer payroll taxes, exceptional items for currency translation charges or gains, and hedge ineffectiveness. Unless otherwise noted, comments from here will refer to those adjusted numbers. With that, Max, let's open the line to questions.

Thank you. We will now be conducting a question and answer session. We ask that you please limit yourself to one question and one follow-up. If you would like to ask a question, please press star 1 on your telephone keypad. Confirmation tone will indicate your line is in the question queue. You may press star 2 if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys.

One moment, please, while we poll for questions. Our first question is from Andrew Lazar with Barclays.

Please proceed with your question.

Great, thanks so much. Hi, everybody.

Hi, Andrew. Andrew. Maybe to start, you know, Dominic, I guess as you think through the back part of the year and the cadence of how you expect sort of market share to unfold, because I guess that's the one area where you note in your prepared remarks that, you know, Some of the disruptions and whatnot in the first half led market share not to be where you want it despite the category obviously accelerating nicely. So I guess is it unreasonable to expect market share to be more neutral by year end or is there something else that would prevent this now that much of the retail disruption is behind you? Competitors are also sort of starting to take price. I'm really just trying to get a sense of whether there is something more structural regarding the ability to hold or gain share as you go forward.

So hi, Andrew, and thanks for the question. So the retail disruptions were a meaningful headwind to our share in the quarter, and we certainly expect our performance to improve in the second half. As you pointed out, those disruptions are now behind us We're also encouraged to see the recent pricing actions of private label. That said, we still have more work to do to improve our competitiveness. We're making significant progress. We expect to deliver better sales and market share performance in the third and fourth quarter, but it's probably going to take more time to get back to market share neutrality. I don't, however, see any reason that we cannot get there over time. In fact, we've developed what we think are very compelling plans that are designed to achieve just that. And we're looking forward to sharing those plans with you at our analyst day in October. Got it. All right, thank you.

And then what sort of elasticity are you seeing thus far on your sort of more recent pricing actions and just how do those compare relative to maybe historical levels?

So it's a little early to talk about where price elasticity is. Of course, in most cases, private label have only just increased prices Although we are starting to see quite meaningful price increases coming through. For example, in the UK, certain retailers increasing 20 or 30% mid-July. Carrefour increasing on certain SKUs in France by 32%. In Germany, Aldi, Edeka, and Rev are all raised prices by about 20% in most of the fish categories. However, we're still analyzing what the real sellout data is. So at this point, it's a little too early to draw any meaningful conclusion.

But it sounds like you're being at least, correct me if I'm wrong, prudent with respect to elasticity assumptions in the way that you sort of guided to the full year around organic sales.

Thanks again. Thank you.

Our next question is from Steve Powers with Deutsche Bank. Please proceed with your question.

Thank you very much. Good morning, good afternoon. Going back to the retailer... Disruptions in Germany and France. I guess in the prepared remarks you talked about them as being behind you, being resolved as you did in response to Andrew's question, but then you also used language that alluded to largely resolved. So I guess the question is, can you be a little bit more specific on exactly where we are today versus full resolution, and if not fully resolved, how much allowance that you've made for Cariova Disruption in the third quarter and second half.

So I think with the exception of certain tiny retailers and tiny markets, these are fully resourced. So certainly in the case of Germany and France, we're now in good shape. So I think you can consider these as resourced.

Okay.

Very good.

Maybe you could also just talk a little bit about the ongoing – Productivity work that is going on within the business. As I think about the early earnings bridge into 27, I guess I'm trying to get a sense of the biggest contributors to profit growth. And just, I guess, the ability of you to drive incremental productivity as part of that bridge, just how you're thinking about that and how your plans are evolving on that front. Thank you.

No, thanks, it's a good question. And let me also make the link to the question Andrew just made. So we are on track with our 200 million productivity program. Also, if you look what we post in terms of our non-recurring spend, you see, by the way, the debt has gone down. But what we are spending, we're spending on programs linked to productivity. We announced a restructuring in some of our marketing function. You've seen that in quarter two, we announced a factory closure. So we are moving ahead and it is in line with the planning. And I think the other point to make is, Also linked to the elasticity is we're not pricing as much as what we used to do like 22, 23. We're using our productivity program to have competitive pricing to make sure that our price index doesn't go up further. We actually have seen our price index going down a bit and that is because of that productivity program. So I think the overall message is we will continue to drive it and it is on track and we'll use it to be competitive in terms of pricing and we're seeing the first results of that in the market.

Okay, very good. Thank you.

Our next question is from Scott Marks with Jefferies. Please proceed with your question.

Hey, good morning all. Thanks very much for taking our questions. First thing I wanted to ask about, in the prepared remarks you called out some of the things that help support your margin expansion. In the quarter, and you actually spoke to some, I think, one-time benefits or phasing benefits that might reverse out later this year. So wondering if you can help us understand maybe what those are, you know, what the magnitude is, and how should we think about timing for those to reverse?

Yeah, thanks, got it clear. I think the main message is you see a return to gross margin growth that is driven by pricing kicking in, as we also said after our quarter one results. So that's fully going to plan. That's it. There's a bit of phasing. So we see a couple of million of phasing in our phasing of A&P and overheads. And we had a bit of variances on some technical stuff related to variances to your recipes, which is also one or two million. But overall, I think the gross margin improvement is coming through to pricing and there's nothing of a facing effect there.

Okay, understood. Appreciate the thoughts there. And then regarding the pricing actions, I think there were some comments in the prepared remarks about your team feeling confident and being able to take Steele, and many more.

is centered around fish. As I pointed out, we've started to see private label increase already over the past few weeks in a number of countries. And we've used some of this opportunity to allow our own price index to go down slightly. So the price increases, we're talking about a cost justified price increases. And so we feel fairly confident in our ability to take these successfully towards the end of this year.

And then maybe if I could just sneak in one more just on capital allocation. You noted a suspension of share buybacks to pay down debt. What leverage ratio do you believe is appropriate in the current environment and do you have a timeline to get there? Thanks.

Yeah, so we're not putting out a leverage ratio. As Dominic said also, when you go look ahead of the next years, we'll come back with our Analyst and Investor Day presentation. Appreciate it. I'll pass it on.

Our next question is from John Tawantang with CGS Securities. Please proceed with your question.

Hi, good morning. Thank you for taking my questions. I was wondering if you could go a little bit more into detail on your market share expectations. I think you said it might take a while to get back to neutral in terms of market share. I was wondering if you have any more specificity on when you expect to get there. Is it Q1 of next year? And is it in your plan at some point to start retaking market share and have growth above the market? Thank you.

So it's absolutely in our plan ultimately to start taking market share. And we'll be talking through those plans as we come to our analysts and investor day in October. But as I said before, whilst we're making good progress and we certainly expect to be able to deliver better share performance in the third and fourth quarter, It's going to take a little more time to get back to market share neutrality. Of course, that's against the backdrop of very strong category growth as well. So it is also worth pointing out that if you look at the category, the frozen category in our markets year to date, it's up 3.4% in value terms and up 1.6% in volume terms. Even in the last three months, by the way, up 2.8% in value and 1.1% in volume terms. So once we do get to that point that we're holding share or indeed growing share, it can have a significant impact. What we're not doing today is giving clarity about when that will be.

Okay, fair enough. Thank you. And then I was wondering if you could talk about any potential impacts from things like weather or other external issues like water shortages and how that might be impacting supplier demand in the current quarter, if that's anything more than you would normally see.

I think, you know, Dominic just said it, that the last three months we've seen actually the category roughly in line where it is here today. I think, you know, 3.4 versus maybe now the last three months, 2.8. So, you know, it has gone down a bit, but I wouldn't say it's a big difference. So that is one category remains strong. Second point is, you know, water shortages, we're not seeing that directly. We're having the harvests now. It's to be seen what that will mean. And again, I need to also come back to the point. The additional inflation we're seeing this year is on fish. If you also look at our cost of goods, a big part is there is related to proteins, which is basically chicken and fish. And that is less related to kind of water shortages.

Understood. Thank you.

Once again, if you would like to ask a question,

Please, press star one on your telephone keypad. Our next question is from Peter Solal with BTIG. Please proceed with your question.

Great, thanks and good morning. Dominic, I wanted to ask, you know, you've been in the seat for a couple quarters now, progressing through this turnaround. What, if anything, has surprised you as you progressed and maybe How has your thinking changed on the turnaround over the past couple quarters? Anything you can share would be helpful. Thanks.

Yeah, happy to. I think a couple of things which I was aware of before but have really been clear over the past couple of quarters. Firstly, the robust health that the category is in. So the fact that the category is in very decent levels of both value and volume growth. The real data behind the brands, the strength of the brand equity versus our competitive brands versus our private label brands has also been a very positive. So essentially we're in a very strong category and we have the best brands in the category. So those things are great. It's also been clear to me though that within Nomad, to make ourselves a much more competitive company and a much more successful company, there have been significant changes which have had to come through and you'll have seen particularly in terms of the changes I've made to the leadership team and the executive team of the business there was a need to bring in some very strong new talent whilst keeping the existing very strong talent that we had and that's meant making a number of quite significant changes to the top of the organisation and that'll also have corresponding changes to the culture that we bring about in the organisation but overall I've been pretty happy with what I've seen Great category, the best brands in the category, and now starting to get the organizations where we need to get to so we can be really competitive in the market in a way that perhaps we haven't been so much historically.

Yeah, thank you for that. And then just my second question, you know, the retail disruptions appear to be behind you. You've implemented some more price. You've changed some of the leadership. I guess over the next couple quarters, what's the next area of focus for you? Is it more around innovation, the marketing side? Just help us understand where you'll be focusing your attention over the next six months or so.

So we've now produced what we think is a pretty compelling value creation plan for Nomad for the following years. And that includes really every aspect of the business from innovation to To how we manage our marketing approach, how we drive our sales organizations across the business, how we improve our productivity and so on. As you can imagine, there's been an enormous amount of very, very intense work that we've put into this over the past six months. And I think we've got to a point where where we consider the plan we've got is a very good one, a plan that we're excited about and and and makes us quite excited about the future of the business and that's what we're going to be presenting when we have our analyst day in October but this will cover really every aspect of the business so it's not the fact that we've had some things to cover for the moment then we're going to cover others this will cover the entire spectrum of what we're doing and we hope that you'll all be as excited about it as we are.

Thank you very much. We have reached the end of the question and answer session.

I would like to turn the floor back over to Dominic Brisby for closing comments.

Thank you all for joining us today and for your interest in Nomad Foods. I look forward to speaking with many of you in the days and weeks ahead and then seeing many of you at our analyst day this October.

This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.