Full Year 2022 Nomad Foods Ltd Earnings Call
Ladies and gentlemen.
And welcome to the Nomad foods fourth quarter and full year 2022 earnings call.
At this time all participant lines are in a listen only mode.
A brief question and answer session will follow the formal presentation.
If anyone should require operator assistance during the conference. Please press star zero on your telephone keypad.
As a reminder, this conference is being recorded.
It is now my pleasure to introduce you to your host Anthony Bucardo Investor Relations. Please go ahead.
Hello, and welcome to the Nomad Foods fourth quarter 2022 earnings call and Anthony can Carlo head of Investor Relations and I'm joined on the call by Stefan to Shoemaker, our CEO and Jamie <unk> our CFO .
Before we begin I would like to draw your attention to the disclaimer on slide two of our presentation. This conference call May include forward looking statements that are based on our view of the company's prospects expectations and intentions. At this time actual results may differ due to risks and uncertainties, which are discussed in our press release, our filings with the SEC and this slot.
In our Investor presentation, which includes cautionary language. We will also discuss non <unk> financial measures during the call. Today. These non <unk> financial measures should not be considered a replacement for it should be read together with <unk> results used.
Users can find the IRS to non <unk> reconciliations within our earnings release and in the appendices at the end of the slide presentation available on our website.
Please note that certain financial information within this presentation represents adjusted figures for 2021 and 2022.
All adjusted figures have been adjusted for exceptional items acquisition related share based payment and related expenses as well as noncash FX gains or losses, unless otherwise noted comments from hereon will refer to those adjusted numbers with that I will hand, you over to Stephane.
Thank you Tony.
Thank you for joining us on the call today.
I am pleased to report that 2022 marked our sixth consecutive year of generating record sales.
EBITDA and adjusted EPS.
I would like to stack all the indicators people at new Matt who made this possible.
And there is terrific challenging conditions.
Last year, we made significant adjustments will business model as we evolve to mitigate the impact of COVID-19, and the Ukraine.
Importantly, we maintained our strong foundation to speak a word that people iconic brands in the bread category and healthy financials.
Allow us to continue investing for the long term.
Frozen food remains a great budget for consumers with sustainable growth expected.
Frozen food is high nutrition low any waste in the base budget for one it across the food category.
During periods when consumers are looking for betterment nutrition in their food choices.
Prudent needs those needs and more.
The category leader nobody is positioned to deliver that value to millions of consumers.
In 2020 and 21.
Our business, except during the Covid lockdown as consumers pantry loaded and it won't be the whole.
Adopting many of our products into their everyday lives.
I'm happy to say that.
We've held on to most of these gains.
In 2022, we started the year with the supply chain is still under pressure from Covid impacts.
The war in Ukraine further competitive situation creep.
Creating historic input cost increases and consumer incentives.
We took full major steps.
Successfully to mitigate the short and long term disruptions.
First we derisked, our fish supplied by diversifying our species and geographies, while wrapping up high quality fossils.
Second we leveraged our corporate supply chain to build inventories of key ingredients.
Protect against any shortages.
Third we successfully priced our products to close the gap with this regulation.
Finally, we refinanced our debt portfolio in November extending our debt maturities to 'twenty eight 'twenty nine.
We believe that 2023 setting up to be a transitional year to a more normalized consumer environments.
With improvements we implemented in our business last year. The plans we have in place for this year.
We are on the right path to meet our financial objectives and maintain.
We also have the right plans in place.
We capture market share boosted by our Red brand communication and innovation.
We plan to strengthen our brand by increasing investment in A&P.
And this is especially crucial as conditions normalize.
We are also be broadening or affordable choices to address inflationary pressures on consumers.
We will manage our supply chain for greater efficiency and use those cost savings through enhancements of Nashville.
Finally, we plan to maximize the value of our portfolio through prudent pricing.
And improve revenue growth management strategy.
This will help drive our efforts to recoup the cumulative impact of two years of record setting cost inflation.
Revenue growth management will be especially important as we maximize the value for both for you and with market share.
By placing the right product at the right place at the right price.
Taken together with the expected rebound in global cash flow and increased visibility of extended debt maturities.
We believe we have significant flexibility to return cash to shareholders.
While positioning our business for growth.
Beyond next year.
We will be taking a deeper dive into our strategy later today at Cagny and we hope you will join us.
With that I'd like to recap, our 2022 key financial metrics beginning with revenues.
Q4, organic revenue grew seven 7% or third sequential quarter of improving sales trends.
Our full year organic revenues grew one 8% as our price increases in the back half of the year offset volume declines.
This low single digit organic sales performance is in line with our guided expectations from the beginning of the year.
Adjusted gross margin declined 80 basis points to 25, 7% in the fourth quarter and declined 120 basis points for this year.
We saw sequential improvement in gross margin trends in the second half usual pricing initiatives.
Adjusted EBITDA was up slightly at 130 million Euro.
And grew 8% to 554 million euro for the year.
And finally, adjusted EPS was reduced 10% Q4 flat versus last year.
Our current U S dollar spot rates, our Q4, adjusted EPS was <unk> 35 USA.
Adjusted EPS was impacted by our November refinancing and we saw an approximately 2% impact on the earnings for Q4 and for the full year.
Despite the Easter week, the challenging macroeconomic environment.
We delivered another record financial performance in sales adjusted EBITDA and adjusted EPS.
Since 2016, we have increased our total revenues by more than 50%.
Adjusted EBITDA by more than 60%.
And doubles or adjusted EPS.
We have generated more than $1 seven digit deal room, and adjusted free cash flow during that period as well.
Organic revenues returned to growth a successful price increases exceeded mid single digit declines in full year volume and mix.
The fourth quarter, we further narrowed the gap between price and input costs.
GAAP, which had widened after the outbreak of the war.
When looking ahead to this year on dialogue remains active with retailers regarding further base oil pricing.
Adjusting pricing with the lowest recoverable costs, while protecting the business, we stepped up investments in A&P and innovation.
Excellence in execution is a hallmark of <unk> and our supply chain had a great performance.
Our service levels ended the year at 96, 6%, a 30 basis point improvement.
As of today, we have more than 50% of raw material cost coverage for the coming year.
We believe our supply chain is a source of competitive strength and a source of savings to sustain topline.
Top line growth this year.
And beyond.
Last year, we raised prices to protect margins and ensure that we have the appropriate profitability to invest in our business.
Many of our private label competitors did not follow up question.
As a result, we've seen volume declines and margin losses in market share.
However.
This was predicted and is part of a broader process.
We believe volume and market share losses are short term in nature, which we expect to rebound this year as we discussed at Cagny later today.
We successfully extended our debt maturity profile in November .
We refinanced our $960 million term loan B, you mid 2024 with two term loans totaling.
$830 million due to the 2009.
Our debt portfolio with no secured until mid 2028 and 29.
Competitive interest cost and a 75% fixed.
With a much received extensive we now have significantly more latitude executing or use of cash.
This year, we're taking important steps to make snow maths wrong in the market and better positioned for long term growth.
First we refinanced our debt in November to give us greater visibility on the whole industrial cash.
Commercially we are investing in our brands with greater in deep to ensure that we have the resources to innovate and grow our leadership position.
When accounting for higher interest charges and stepped up investments.
We are establishing our 2023 adjusted EPS guidance.
At the range of $1 50 euro to $1 55 year rule.
Flex those investments.
This represents an adjusted EPS range of $1 $61 to $1 66 dollar U S dollar spot rates.
The guidance excludes any impact of capital allocation.
Excluding the impact of incremental interest and investment in A&P and people for 2023, our forecast adjusted EPS range for this year would that be in the range of $1 70 euro to $1 75.
This would also have excluded any positive impact from capital allocation.
We made significant adjustments will business model as we have repeated last year's political and macroeconomic environments.
First we completed a major initiatives to protect our fish supply.
Throughout the year, we continually so alternative sources for signature products.
We also secured new high quality farm fish.
And we expect to see the benefit of that early this year.
We believe this protect the security of high quality supply of sourcing, but also provides opportunities to exercise pricing forward.
When purchasing fish in the future.
Second we leveraged our world class supply chain to address bullets that market against unprecedented cost increases.
Procurement was a key source of strength in 2020, due as we built raw material inventory to protect against possible shortages.
Our service levels improve them for the full year delay.
Delivering consistently for customers and consumers.
We continue to improve our supply chain efficiencies through intensive diligent cost control programs.
And we expect virtual new savings to be reinvested detailed black book this year.
Finally, we price to close the gap with inflation in a typical year, we price went to the first quarter.
However, with your break of the war in Ukraine, we saw rapid increases in raw material prices.
We were compelled to act.
We took pricing for the year were appropriate and made significant progress in closing the gap between price and cost.
We will enter this year with improving margins needlepoint investment in our brands.
Alongside a vigorous revenue growth management strategy, we will continue to quest consistency with inflationary market dynamics at the Orca.
With that I will.
Now I'll hand, the call over to SME to review, our financial results and guidance in more detail Tommy.
Thank you Stephane and thank you all for your participation on the call today.
Turning to slide seven I will provide more detail on our key fourth quarter operating metrics, beginning with record revenue, which increased six 6% to 750 million Euro up seven 7% organic.
Fourth quarter revenues were negatively impacted by one 1% of unfavorable effects.
For the year total revenues were up 12, 8% driven.
Driven by one 8% organic growth and 10 eight percentage points from acquisition.
Overall, our sales benefited from lapping 2021 comparison as well as strong pricing execution across all four quarters of the year.
We did see elasticity in our top line performance.
This impacted our market share in overall volumes.
Our volume and mix was up mid single digits, while our value share was up about half a point for the year.
We expect market shares improved sequentially. This year due to our innovation efforts on value and affordability as well as stepped up A&P investment.
Adjusted gross margins were 25, 7% during the quarter, reflecting an 80 basis point decline versus the prior year.
Margins were impacted by higher raw material costs offset to some degree by pricing. This.
In the second quarter of an improving gross margin trend.
We will continue to look at pricing to stay price competitive in the market and manage or any additional inflation.
However, as we look out to the next year, our expectation is for relatively stable gross margin as we will continue to recoup cost the two products.
Finally, we are planning to refresh our universal shelf registration statement on form F. Three amongst the first to ensure that we can continue to access capital market efficiently.
New offerings are currently planned.
Moving down to the rest of the P&L, our adjusted gross profit grew 3% to 193 million euro for the fourth quarter.
Adjusted costs increased to 558 million.
An increase of seven 7% and 40 million euro versus last year.
Adjusted operating expense of 103 million was up 9% year over year.
Our adjusted EBITDA and our adjusted EPS performance fees were positively impacted by higher pricing in our core business offsetting a considerable portion of our raw material costs for this quarter and full year.
Fourth quarter adjusted EBITDA of 130 million Euro was up slightly versus last year.
Adjusted EBITDA margin landed at 15, 1% a decline of 90 basis points.
Finally, our adjusted EPS of <unk> 53, Europe was flat in Q4 this translates to 35% in U S dollar term at spot rate.
Adjusted EPS was negatively impacted by debt refinancing and this had a roughly two euro cent impact on earnings for Q4 and for the full year.
Full year adjusted gross profit grew 8% to 850 million Euro.
Cogs increased to just above $2 1 billion.
At 14% driven by raw material inflation.
Full year adjusted operating expense grew 12% for the year to 380 million Euro.
As a percentage of sales adjusted operating expense was flat at 13%.
Full year adjusted EBITDA ended at 524 million.
8%.
Adjusted EBITDA margin was 17, 8% also down 90 basis points from last year.
Full year adjusted EPS of $1 68 euro lending in the middle of the guidance range. We provided in Q2 earnings up 8%. This was 180 there are current user at corporate.
Excluding our November refinance we estimate our 2022 adjusted EPS would have been 117 or $1 82, there are current USD four three.
Turning to cash flow on slide nine.
We generated 189 million euros, adjusted free cash flow for our cash flow conversion of 65%.
Cash flow was impacted by the working capital increase of 96 million and the one time implementation of the unfair trade practices directive or UTP in the EU and 18 million Euro driving.
In 2023 with more normalized working capital level, and UTP and debate, we expect to return to a cash flow conversion of 90% to 95%.
Our cash flow performance was short of our typical annual goal of 95% conversion.
However, we took important steps last year to protect our business by getting raw material inventory to mitigate shortage risks.
We made it a top priority to guarantee supply for customers and consumers and we did so.
We are proud of this accomplishment and we believe keeping product on the shelf was crucial in maintaining the confidence of our retail partners and consumers.
Condition in the raw material markets are improving and we have begun releasing working capital.
We expect to continue doing so throughout this year.
Capex of 79 million Euro was flattish with last year.
We supported strategic investments and integrated our recent acquisitions into our broader company spending plan throughout the year.
Changes in cash stock decreased 15 million to.
Two 8 million, while cash interest was 22 million to 80 million.
Mostly due to the comparison with last year's refinancing period.
With that let's turn to slide 10 to review, our 2023 guidance, which you are initiating today and is based on foreign exchange rates as of February 'twenty, one 'twenty two.
Starting with the topline we expect revenue growth in the mid single digit range for the year.
We expect our pricing initiatives to offset the expected volume decline declines, which we expect to rebound.
We expect this year's cash flow to be consistent with our historical performance.
With our working capital and new CPE adjustment behind US, we expect our cash conversion ratio to rebound to previous level, 90% to 95%.
As Stefan highlighted in his opening comments with higher interest costs from our refinancing and stepped up commercial investment we expect adjusted EPS in a range of $1 50 to $1 55 euro per share.
Or $1 61 to $1 66 at current spot rates.
This excludes any impact of capital allocation.
When excluding the impact of incremental interest and stepped up investment in A&P and people for this year our forecast adjusted EPS range for 2023 would have been $1 70 to $1 75 Euro.
This also without excluded any positive impact from capital allocation.
I will now turn the session over to Q&A operator back to you.
Thank you.
Ladies and gentlemen at this time, we will be conducting a question and answer session.
If you would like to ask a question. Please press star one on your telephone keypad.
John will indicate your line is another question in queue.
You May press Star two 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 desktop Keith.
Ladies and gentlemen, we will wait for a moment, while we poll for questions.
Our first question comes from the line of Andrew Lazar.
From Barclays. Please go ahead.
Good morning, everybody.
Good morning, Andrew.
Maybe just start off fourth quarter gross margins came in.
Below where we had forecast pricing was in line with what we modeled and volume was even a little bit better.
So I was hoping first just to get perspective on what do I know the margins sequentially improved but they really were still down year over year. So I'm curious what drove some of that starting point. Thanks.
Yes, hi.
Andrew two year debt was exactly in line with what we have planned for which was the ticket the continuation of the execution of our pricing strategy to recover costs and costs are flowing through the quarter. So it's just a question of phasing and timing I mean on that one that doesn't change.
And the strategy to recover inflation through pricing.
Okay, and then you talked about in our price leaders services just one additional point, we are pricing ahead of the orders anyway.
So we priced.
Two questions.
And then I know you talked about stable gross margins.
For the year I think in 'twenty three.
Was hoping you could add a little context, maybe around the expected sort of cadence, we expect gross margin to still be under some pressure in the first part of the year.
And then start to recover a bit in the back half to get stability for the year or just any perspective on cadence of margin and profitability through the year would be helpful. Thank you.
It's exactly that we won't see the significant let's say between the personal auto but effectively now that the if you on the full process of pricing is in place. We have now very good visibility on the inflation as we move forward.
<unk> see a sequencing of the gradual improvement of the margin over the year absolutely.
Thank you.
Okay.
Thank you.
Our next question comes from the line of John Baumgartner from Mizuho Securities. Please go ahead.
Good morning, Thanks for the question.
Sami just thinking of the cost environment for 2023, I don't I don't think I heard you give us an actual cost inflation estimate for this year, although I may have missed it. So just wanted to confirm on that front and then.
I think I heard that more than 50% of your raw materials are covered for this year, which I think is sort of similar to where it was back in November and it sounds like you have good visibility into costs. At this point. So can you just sort of reconcile has anything changed structurally with the shift in safe sourcing where that preclude you from taking that coverage position higher at this point are you.
Cutting relief and Youre, giving yourself flexibility, we havent taken coverage higher at this point, how do you think that the cost environment going forward right now.
Absolutely I think we had mentioned appointed after Europe significant inflation in 2022, we are seeing effectively the trended softening. Okay. Clearly is not moving to a point of decline, but typically we see much lower inflation on several of the raw material and packaging materials across the board overall food inflation level of traveling to Fay.
In 2023 will be lower than Q1 of 2022, but will still be there and will require some pricing action in order to continue on the journey of protecting our cost structure in order for us to allow for investments in the in the future.
50% that has been mentioned John was.
It was actually a projection we stated that by the end of the year, we intended to be effectively at in the range of about 50 plus percent and we're continuing on that journey now why aren't we effect increasing debt is because effectively they are down trends now in the market and we want to opportunistically take the action in order for us to <unk>.
At a lower cost when effectively ingredient prices are going down so effective we feel that staying at that level makes sense given the trend that we've seen the market I mean at this stage, but of course is the opportunity to look good prices.
In relation to the type of inflation, we're expecting efficacy will do so for sure.
Okay. Thanks for that Fannie and then just quickly on <unk> I'm curious the expectations for 2023, I know you've been sort of ahead of pace of integration rolling out additional coolers operationally is there anything different we should be looking for in 2023 in terms of innovation distribution.
The marketplace, there and is it fair to think that in 2023, four <unk> the revenue growth should be accretive to the guidance you've given for that for the overall company. Thank you.
Well the answer to your second question is yes, absolutely and what we're also going to see in 2023 years. As you know integration takes time. So the first year was I mean, we did very well with the integration is a multiyear process and 23, obviously is going to accelerate this process. So we're very pleased with what we see.
What we see in it.
With both the Nova we also see that for example, we have top line synergies by combining with the with our products as well. We also see some opportunity there will be a will.
Or will we not mentioned too much at this stage in time will time will tell what that will come when we can see some reverse topline synergies.
More specifically in ice cream, where it makes sense, we never going to change all of point about must win battles, where we need to be strong with matters, but we see some some interesting options.
In very carefully chosen places, where where ice cream may makes sense. So very pleased and quite frankly as always the kind of situation. You see also things that is not necessary has seen when you started but overall what I can see is more definitely more good news than bad news.
Okay. Thanks, Bob.
You're welcome.
Thank you.
Our next question comes from the line of Rob Dickerson from Jefferies.
Please go ahead.
Great. Thanks, so much.
So I guess just a question around the brand investment.
Okay.
I think Sammy.
Last quarter, you had said.
You would like the gross margin to kind of approach back until at least the high 20% level. Yeah. I'd tell you, we're able to lead into the business a little bit more aggressively.
Now clearly you are leaning in.
Sounds like that's out of kind of near term need.
So I was just curious you know.
As you speak to kind of offering maybe more value based products right. It doesn't sound like there is its intention to really.
Materially increased promotional spend but maybe rather kind of there'll be shifting the mix to some extent to recapture some of that volume share as we get through the year. So maybe if you could just provide a little bit more color as to kind of where the brand investment is going and if there is some <unk>.
Roger will kind of product offering shift.
To now more effectively compete.
The lower priced private label thanks.
Yeah. Thanks, Thanks, Rob actually we will be affected considering both and I think your question is probably about the balance.
Reality is that over the past two years, we have a whole variety of reasons you can take down our investment in the <unk> part of the E&P in advertising and with the strength of our brands in particular and awareness and equity strength overall, we feel effectively this is the moment to recapture some of this and re emphasize the communication on our brand.
And on what they are what they stand for vis vis the consumer and as well to regain momentum with our retailers because they really view typically as the category captain there. So we will be reinvesting back into the core of the brands on the innovation as well as effectively on some of the cost of living innovation that we are driving in the market. So thats part of the <unk> on.
On the T side efficacy there will be an element that is going to be important we are not going to tolerate volume share off okay.
And overall share loss in Q1, so we will be effective taking action when it comes to the sustained competitive versus our competitors, particularly private label and discounting in order for us to maintain the price level that are needed. We would expect them to overall effectively get to the same reality is we're facing from an inflation standpoint and have to price for that.
But at the same time, we will need as well to be promo competitive in order for us to maintain our competitiveness in store on that one so its going to be really.
Our balance I think Rob on that one which is really needed above the line and below the line.
Okay got it and then just quickly.
For the guide you know pricing more than offsetting volume declines.
But then also.
Im hoping that there is a recapture volume share.
That would imply as you know, let's say at least.
If we're sitting here and maybe Q4 of <unk>.
Next year that hopefully here the expectation is that volumes could actually turn positive that's all I have thanks.
That's definitely the concept for US is simple at this stage with the price gap, we have we're losing that we're losing volume, which which was expected.
To sum is points in the meantime, we are also starting to invest big time in a and B I think you've just want to emphasize the RG <unk> program that we put in place, which is which is quite frankly very strong at the same time, we see you will see also some signals from some competition.
They're starting to increase price and also we also see two Mac to semi points inflation is going to start to see starting to soften. So all these elements taken together things, we can control and things we control less obviously makes us much more confidence from that standpoint for the second part of the year.
Any family, rather Mina justa compliments different points I think to your point I think is going to be something around between the quarter. Four in Q1 of the following year, but the intent is to see a smoothing down of the volume decline.
And then gradually get back to normalization in 2024 and regaining momentum on the volume side at the time when do you know what.
Traditionally when you see any economic downturn in what we've seen in all categories two things for the time being one is.
Frozen is doing very well for obvious reasons, it's affordable it's convenient.
It's good value for money. So that's obviously a very good for the older players in starting with US and also temporarily private labels are doing well for the reasons we mentioned.
And that's why I think some is absolutely right. You mentioned that is going to be gradual also helped by our investment program.
Alright, great.
Thank you.
Thanks.
Thank you.
Our next question comes from the line of Cody Ross from UBS. Please go ahead.
Good morning, Thank you protecting our questions.
My first question I, just want to compare or if you can compare and contrast, your your <unk>.
<unk> today versus your volume pre COVID-19.
Are you seeing more volume come through the system or is volume down given all the pricing that you've taken over the last few years.
Sure.
From a volume standpoint in aggregate effectively what we're seeing is.
About the slight decline in the pre Covid remember carbon tons that we had a substantial increase in our volume in the range of about I think.
High single digit at the time and then it started to erode efficacy and after the part two we had about the same amount. So I would say from a pure volume standpoint, we are clearly slightly down. However, I think with three important to note. There is that from a consumer reach standpoint actually we are now reaching more consumers versus where we were pre COVID-19 about half.
Median more consumer and that was with <unk>.
A very important point for us given the strength and the momentum yoga during Covid is to maintain these consumer share if you want higher than what we had pre COVID-19, but to remind you right.
Great. Thank you my follow up is just around 2025, I didn't see anything in the press release or the slides today about your 2025 targets.
Just wanted to go back to there how comfortable are you.
With your 2025 targets.
Specialty on EPS, given that require over a 20% CAGR to hit that.
And if you are comfortable just what drives your confidence thank you.
Thanks for the question to make it simple we offer we are still on track operationally for 2025.
At the same time, the interest rate environment has changed.
Since we established that guidance as you may remember.
So looking looking ahead to 2025, we are strengthening our investment plans you heard about it.
It's going to be funded in 'twenty, three and beyond funded by cost savings to sustain our growth momentum in the years to come.
We committed.
As we always have been in the CEO Records.
To deliver superior shareholder return and we have many options available for us to achieve this you can't you can remember the kind of capital allocation program. We've been through these years, it's quite significant.
Thank you.
Ladies and gentlemen, a reminder, if you wish to ask a question. Please press star one.
Okay.
Our next question comes from the line of John <unk>.
Your line Tang from C J.
Please go ahead.
Good morning. This is stefanos crist, calling in for John Thanks for taking our questions.
Good morning, good morning.
Can you just talk about your plans for the improved cash flow. This year is debt pay down the most attractive or leasing opportunities for repurchases or M&A.
At this very carefully reviewing all options I mean that is we have a wide array of options ahead of us I mean, <unk> ranging from share buyback too.
FX M&A and other elements relating to our capital allocation, what's important to highlight is the fact that we're returning to our strong cash flow performance in 2023, and we really now are going to consider all possibilities the fourth to maximize the return on the let's say to shareholders overall.
Thank you and just a little more detail on the price increases can you just talk about how receptive your customers have been compared to negotiations in the past few years.
Yes, overall I think it has gone remember a year ago when the when we were I think it can.
Mia and announcing efficacy that we have to go through a second pricing. There was an element of question Mark and frankly, the three price increase over the year have gone through reasonably well.
And we haven't seen any dislocation whatsoever, given the dialogue that we have undertaken with the with the retailer and the way we've been executing the pricing of oil by leveraging not only to feed price, but as Stephane was alluding to effectively all of the possibilities of a renewed RCM our revenue growth management strategy I would say on that one so what has been going through in 'twenty two has.
Gone reasonably well with two markets that are kind of spilling over into 2023, which are going to execute pricing, but clearly a bit later, we will have to clearly continue on this pricing journey because of the fact that there is still inflation in 2023 BTT one.
Smaller, but as I said, it's a question frankly of laying down the issues well in finding the right balance between top and bottom line and outgrowth versus typically the retail growth and while staying competitive with.
With our customers.
With our consumers that with silver so so far as I said, it's been going quite well overall and we are very happy when you think about the context into weakness has been realized with an ongoing changing environment. I think the organization has done an absolutely have Chilean job in order to execute I mean, something that was deemed to be viewed a impossible and we.
<unk> is now in market as we speak.
That's great. Thank you.
Thank you.
As there are no further questions. So.
I would now like to turn the conference over to Stephane <unk>, Chief Executive Officer for any closing comments.
Thank you operator, and thank you for your participation on today's call.
2022 was another eventful year with many challenges to address.
We adjusted to Brexit, we adjusted to Brexit to Covid, and we have no adjusted to unprecedented inflation pressures.
Frozen foods remains the best value for consumers across food and we remain focused and committed to delivering our ambitious financial objectives.
And I look forward to speaking with you at Cagny to give you more details details on our plan.
So thank you all and back.
Back to you operator.
Thank you.
Nomad Foods has now concluded. Thank you for your participation you may now disconnect your lines.
Yeah.
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