What's Happening?
Nomad Foods, the owner of Birds Eye and Iglo, has unveiled a plan to achieve €200 million in savings by the end of 2028. The company aims to cut costs in procurement, logistics, and overheads as part of an efficiency program. This announcement comes weeks after Nomad Foods lowered its forecasts for annual sales and earnings, citing weaker-than-expected first-half results. The savings are intended to allow for targeted reinvestments and to mitigate inflationary pressures, with a focus on improving the utilization of its manufacturing network and unlocking overhead efficiencies.
Why It's Important?
Nomad Foods' savings plan reflects the challenges faced by the frozen-foods sector in maintaining profitability amidst economic pressures and changing consumer preferences. By streamlining operations and reducing costs, the company aims to enhance its competitiveness and financial stability. This move could set a precedent for other companies in the industry to adopt similar strategies to navigate economic uncertainties and improve operational efficiency.
