Hellofresh Se · XETR:HFG
Hellofresh — Hellofresh Se Ord — Q3 2024 Earnings Presentation
26 slides from Hellofresh's earnings presentation, Oct 29, 2024
Slide 1: HelloFresh Group Q3 2024 Results
HELLOFRESH GROUP Q3 2024 Results October 29th, 2024
Slide 2: Disclaimer
Disclaimer This document has been prepared by HelloFresh SE (the “Company“ and, together with its subsidiaries, the “Group”). All material contained in this document and information presented is for information purposes only and must not be relied upon for any purpose, and does not purport to be a f
Slide 3: Fundamental shift adapting marketing strategy to market maturity
We have started a fundamental shift of adapting our marketing strategy to the different maturity stage of the market Maximizing marketing ROI and long-term cash Maximizing growth at low ROI thresholds generation Prioritizing market share considerations Prioritizing high value customers Improving bra
Slide 4: Disciplined full-funnel approach to bring the strategy to life
We bring the strategy through a disciplined full-funnel approach to life... Build long-term f desirability through > brand and content investments Bring product innovation & ‘reasons to buy’ to the forefront of the customer journey _ HELLOLES © DINERS| Provide value & benefits via owned channels HEL
Slide 5: Nurture long-term relationships with existing customer base
.. and nurture long-term relationships with our existing customer base to increase long-term marketing ROI Improved service levels Accelerated product investments a 800-4000 “me 08:00 12:00Une Oe age) * 10:00- 1¢00Uhe (149.¢) | oo -- Content and brand strategy weorT” ~ Roll out HF+ program targeted
Slide 6: Q3 2024 Highlights
Q3 2024 Highlights Robust quarter, both from a revenue growth and bottom line perspective Revenue of €1.8bn, a constant currency growth of 2% Further increase in average order value in both segments to Group AOV of €66.2 (+3.8 % yoy on CC) Good marketing efficiency with marketing expenses down yoy b
Slide 7: Continued modest yoy decrease in overall order volume
2023 Q3 Number of Orders • Continued modest yoy decrease in overall order 2024 volume for the Group (in millions) (1.9%) • Subdued new customer acquisitions in meal kits, partly driven by focus on higher value meal kit customers and marketing budget shift towards rapidly growing RTE • Continued robu
Slide 8: Further AOV growth into Q3
• Further AOV growth into Q3, increasing 3.8% 2023 Q3 Average Order Value yoy on a constant currency basis 2024 (in €) • Both segments showed steady increase +3.2% ◦ NA: 4.3 % (cc) CC +3.8 % ◦ Intl: 3.0 % (cc) • AOV increase primarily driven by: ◦ Increased RTE contribution ◦ Increase in add-ons Q3
Slide 9: Q3 Group Revenue
• Positive revenue growth across both segments 2023 Q3 Group Revenue ◦ NA cc growth of +2.0% 2024 (in € millions) ◦ Intl cc growth of +1.7% +1.4% • Continued strong cc revenue growth in RTE of CC +1.9% 40% • Meal kits negative cc revenue growth of (9%), with continued overall marketing discipline Q3
Slide 10: Q3 Contribution Margin
• Q3 is a seasonally lower quarter for contribution 2023 Q3 Contribution Margin1 margin given lower utilization rates and warm 2024 (in € millions & as % of revenue) temperatures (more packaging required) (1.3pp) • Contribution margin still down yoy, but delta sequentially reducing, due to: 25.6% ◦
Slide 11: Q3 Marketing
• Q3 marketing expenses reflect normal seasonality, 2023 Q3 Marketing1 with September impacted by the ‘back-to-school’ 2024 (% of revenue) period +0.7pp • Disciplined focus on marketing ROI results in yoy reduction • For Q4 we target to maintain our marketing efficiency and, unlike last year, will n
Slide 12: AEBITDA by segment and product category
Product categories Q3 9M Segments By segment In MEUR Q3 2024 Q3 2023 9M 2024 9M 2023 North America 74.0 83.3 232.4 326.6 International 34.7 23.7 118.1 111.4 Holding (36.6) (37.8) (115.4) (110.6) Group 72.1 69.2 235.1 327.2 By product category In MEUR Q3 2024 Q3 2023 9M 2024 9M 2023 Meal kits 108.6 8
Slide 13: Meal kit Q3 AEBITDA Margin
• Meal kit AEBITDA up yoy in absolute and 2023 Q3 AEBITDA Margin relative terms 2024 (in € millions & as % of revenue) • Key driver is focus on marketing ROI, leading to +33.0% lower yoy marketing spend (absolute and +2.7pp relative) 8.5% • Contribution margin lower than last year, due 5.8% to lower
Slide 14: RTE Q3 AEBITDA Margin
2023 Q3 AEBITDA Margin • Seasonality for RTE is similar to meal kit business 2024 (in € millions & as % of revenue) ◦ In Q3, lower trading volume during the summer; then an increase in marketing (77.9%) intensity during '’back to school’ (6.7pp) 8.0% • Envisaged breakeven for Q3 2024 over-achieved •
Slide 15: Q3 AEBIT Margin
• Difference to prior year primarily driven by 2023 Q3 AEBIT Margin1 higher D&A 2024 (in € millions & as % of revenue) • Increasing focus on AEBIT as a key (0.4pp) performance metric going forward to steer the business to higher capital efficiency 0.8% 0.4% Q3 2023 Q3 2024 1 Excl. impairment Q3 2024
Slide 16: 9M Free Cash Flow
• Cash Flow from Operating Activities lower 2023 9M FCF yoy, primarily driven by lower AEBITDA 2024 (in € millions) • Somewhat offset by lower CapEx (32.8%) ◦ 9m 2023 CapEx of EUR 235.8m ◦ 9m 2024 CapEx of EUR 131.6m 9M 2023 9M 2024 Q3 2024 Results | 16
Slide 17: Revised 2024 outlook
Revised 2024 outlook: 1%-1.7%% cc revenue growth and €360m - €400m AEBITDA FY Guidance Constant Currency Revenue 2% - 8% Growth AEBITDA €350m - €400m HELLOFRESH GROUP 9M 2024 2% €235m Revised Guidance 1% - 17% €360m - €400m Q3 2024 Results | 17
Slide 18: Q3 2024 Results | 18
▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ Q3 2024 Results | 18
Slide 19: Appendix
Appendix
Slide 20: Group: Operational and Financial KPIs
Group: Operational and Financial KPIs Q3 23 Q3 24 Number of orders (m) 28.0 27.5 Number of meals (m) 236.6 231.2 Average Order Value (€) 64.2 66.2 Average Order Value constant currency (€) 64.2 66.6 YoY revenue growth1 1.9% CC4 % Revenue1 1.4% € (€m) % Revenue 25.6% 24.1% Contribution margin2 (€m) A
Slide 21: North America: Operational and Financial KPIs
North America: Operational and Financial KPIs Q3 23 Q3 24 Number of orders (m) 16.0 15.7 Number of meals (m) 128.3 124.2 Average Order Value (€) 74.9 77.2 Average Order Value constant currency (€) 74.9 78.1 YoY revenue growth1 2.0% CC4 % Revenue 0.9% € (€m) % Revenue 27.3% 26.1% Contribution margin2
Slide 22: International: Operational and Financial KPIs
International: Operational and Financial KPIs Q3 23 Q3 24 Number of orders (m) 12.0 11.8 Number of meals (m) 108.4 107.0 Average Order Value (€) 49.7 51.6 Average Order Value constant currency (€) 49.7 51.2 YoY revenue growth1 1.7% CC4 % Revenue1 2.4% € (€m) % Revenue 23.8% 21.9% Contribution margin
Slide 23: Profit and Loss Statement
Profit and Loss Statement 3 months ended Change % 9 months ended Change % 30-Sep 24 30-Sep 23 YoY 30-Sep 24 30-Sep 23 YoY Revenue 1,828.4 1,804.0 1.4% 5,852.8 5,737.6 2.0% Procurement Expense (697.3) (634.4) 9.9% (2,203.1) (2,005.5) 9.9% Fulfilment Expense (697.9) (715.6) (2.5)% (2,240.3) (2,218.7)
Slide 24: Balance Sheet & Cash Flow Statement
Balance Sheet & Cash Flow Statement In MEUR As at 30-Sep 24 As at 31-Dec 23 Assets Non-current assets 1,717.8 1,756.4 Cash and cash equivalents 355.6 433.1 Other current assets 365.8 391.8 Total assets 2,439.2 2,581.3 Equity and liabilities Equity 900.8 1,019.0 Non-current liabilities 535.7 649.3 Cu
Slide 25: Share Count
Share Count As of September 30, 2024 Types of share Ordinary shares Stock exchange Frankfurt Stock Exchange Market Segment Regulated Market (Prime Standard) Number of shares issued 173,190,562 Number of shares outstanding 163,465,079 Employee Incentive Plan Options RSU Total Vested (in mn) 11.0 1.3
Slide 26: Llu
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