Nomad Foods Limited

In Q1, we generated 25 million euros of adjusted free cash flow for a conversion ratio of 32%, but to 62% in Q1 2022. Q1 was adversely impacted by the phasing of inventory, receivables and payables in certain markets during the quarter. The adverse phasing of receivables and payables is temporary and should reverse in Q2. We remain on target for our 2023 cash flow guidance, and our options for accretive capital allocation remain wide open. CapEx of €21 million was flat versus last year. We continue to support strategic investments in the business. Changes in cash tax increased €1 million to €10 million, while cash interest was down €2 million to €25 million. As part of our refinancing in November 2022, we will be facing higher cash interest payments on a portion of our debt. As a result, we saw a cash benefit in Q1 before realizing the full impact of higher interest charges in Q2. Last year, our cash generation was negatively impacted by a working capital build to mitigate the possibility of supply shortages in the middle of the year. We are also impacted by the implementation of unfair trade practice directive, UTPD, in the EU. This year, with normalised inventory level and UTPD in the base, we expect cash flow conversion in line with our historical average. With that, let's turn to slide eight to review our 2023 guidance, which we initiated in our 2022 earnings report in February and are basing today. This guidance is based on foreign exchange rates as of May 3, 2023. We are updating the original guidance we delivered in our 2022 year-end earnings report. First, we expect organic revenue growth to be in the mid-single digit range for 2023. We expect our pricing initiative to more than offset volume declines. We expect cash flow to be in line with our historical performance With working capital and UTPD in the base, we expect our cash conversion ratio in the range of 90% to 95%, in line with historical averages. We are raising the bottom end of our original 2023 guidance. We now expect adjusted EPS in the range of €1.52 to €1.55 per share, or €1.67 to €1.71 at current USD spot rates. This replaces our original guidance of €1.50 to €1.55 and excludes any impact of capital allocation. I will now turn the session over to Q&A.

Operator, back to you.

We will now begin the question and answer session. To ask a question, you may press star then 1 on your telephone keypad. If you're using a speakerphone, please pick up your handset before pressing the keys. To withdraw your question, please press star then two. At this time, we will pause momentarily to assemble our roster. Our first question will come from Jason English with Goldman Sachs. You may now go ahead.