(Reuters) - Nomad Foods Ltd (NOMD.N) reported better-than-expected quarterly sales on Thursday, as the company benefited from acquisitions of frozen food brands Aunt Bessie’s and Goodfella’s Pizza.
Nomad has been strengthening its European frozen foods brands in a bid to boost sales, starting with the acquisition of Goodfella’s Pizza in April last year. The company also bought Aunt Bessie’s, known for its Yorkshire puddings and frozen potatoes, for 240 million euros in July last year.
The acquisitions boosted the frozen food maker’s revenue growth by 17.3 percentage points in the fourth quarter ended Dec. 31.
“We are pleased with our progress integrating Aunt Bessie’s and Goodfella’s, which have outperformed their plans since being acquired in the middle of 2018,” Chief Executive Officer Stéfan Descheemaeker said in a statement.
Nomad’s revenue surged 21 percent to €614.8 million ($701.8 million), beating the average analyst estimate of €588.5 million, according to IBES data from Refinitiv. [nBwb9szvna]
Net income rose to €40.8 million in the quarter from €27.3 million a year earlier.
Excluding items, the company earned €0.29 per share, in line with the average analyst estimate.
($1 = 0.8760 euros)
Reporting by Soundarya J in Bengaluru; Editing by James Emmanuel