Slide 1: Q4 & FY 2023 Results
Q4 & FY 2023 Results 15th March, 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: 2023 Year in Review
2023 Year in Review Fifth consecutive year of profitable, self-funded growth, in which we delivered over 1bn meals to our customers, up ~4x since 2019 Revenue of €7.6bn, a constant currency growth of 3% Rapidly growing and profitable global RTE business with revenue of €1.4bn Contribution margin exp
Slide 4: 2023 marked the 5th consecutive year of self-funded, AEBITDA profitable growth
2023 marked the 5th consecutive year of self-funded, AEBITDA profitable growth Group Revenue Group AEBITDA (in € billions) (in € millions) CC CAGR CAGR 2019-2023 2019-2023 33% 57% 7.6 7.6 528 505 477 6.0 448 3.8 2020/21 supported by Covid- driven low CACs and high- capacity utilization 1.8 47 2019 2
Slide 5: Despite the temporary slowdown, we have held onto the Covid-supported growth better
Despite the temporary slowdown, we have held onto the Covid-supported growth better than comparable categories Higher growth rate relative to peers (Growth vs peers1, indexed to 2019) >4x Growth at scale is not linear Normalization seen in the context of pandemic-driven growth General e-commerce 2x
Slide 6: Number of orders moderately down in Q4, but with an improving trend
Number of orders moderately down in Q4, but with an improving trend throughout the year • Orders in both segments (NA and Q4 Number of orders FY Number of orders Intl) down yoy in Q4 by low single (in Millions) (in Millions) digit % (2.8)% (4.7)% • Improving yoy trend in Q4 vs prior quarters • Stron
Slide 7: Continued AOV expansion throughout the year
Continued AOV expansion throughout the year • AOV growth continued in Q4, Q4 Average Order Value FY Average Order Value increasing 6.4 % yoy on a constant (in €) (in €) currency basis • Both segments showed meaningful +2.0% +4.8% CC +6.4% CC +7.8% increase in AOV in Q4 ◦ NA: 7.0 % (CC) ◦ Intl: 5.0 %
Slide 8: Constant currency Q4 revenue growth of 3.4%, and 2.8% for the full year
Constant currency Q4 revenue growth of 3.4%, and 2.8% for the full year • Positive CC revenue growth across Q4 Group Revenue FY Group Revenue both segments, with re-acceleration (in € millions) (in € millions) over the last 2 quarters • NA +4.4% (0.8%) (0.1%) • Intl +1.6% CC +3.4% CC +2.8% • RTE gro
Slide 9: Procurement expenses as % of revenue up 0.8pp yoy in 2023
Procurement expenses as % of revenue up 0.8pp yoy in 2023, driven primarily by RTE growth • RTE has comparatively higher Q4 Procurement Costs FY Procurement Costs procurement costs, as it captures all (% of net revenue) (% of net revenue) aspects of the cooking process • In NA, procurement expenses
Slide 10: Continued reduction of relative fulfilment expenses by 2pp yoy in 2023
Continued reduction of relative fulfilment expenses by 2pp yoy in 2023 • Significant improvement in relative Q4 Fulfilment Costs FY Fulfilment Costs fulfilment expenses for the 6th (% of net revenue) (% of net revenue) straight quarter • NA: Improvement primarily driven by 1.9pp 2.0pp structural low
Slide 11: 1.3pp contribution margin expansion, reaching 27% for the full year
Despite previously flagged RTE ramp-up and other costs in Q4, 1.3pp contribution margin expansion, reaching 27%1 for the full year Q4 Contribution Margin1 FY Contribution Margin1 • Strong contribution margin (in % of revenue) (in % of revenue) expansion across both segments: 0.2pp 1.3pp ◦ NA: 1.6pp
Slide 12: Marketing spend above prior year at 18.8% of revenue
Marketing spend above prior year at 18.8%1 of revenue Q4 Marketing Costs1 FY Marketing Costs1 • Meal-kits absolute marketing spend (% of net revenue) (% of net revenue) relatively flat yoy (FY) (3.0)pp (2.1)pp • Absolute RTE marketing spend up by ~60% yoy, in line with revenue growth (FY) • Less eff
Slide 13: Full year AEBITDA of €448m for the Group
Full year AEBITDA of €448m for the Group • AEBITDA development yoy driven by: Q4 AEBITDA Margin FY AEBITDA Margin ◦ Softer EUR-FX rates (in € millions & in % of revenue) (in € millions & in % of revenue) ◦ Continued contribution margin expansion ◦ Somewhat higher relative (29.0%) (6.3%) (2.4pp) (0.4
Slide 14: Return to positive free cash flow of €78m in 2023
Return to positive free cash flow of €78m in 2023 • Cash Flow from Operations increased to €384m Free Cash Flow • CapEx reduced to €306m (in € millions) • Strong cash position of €433m at year end • Ongoing share buyback program, under which €30m of stock has been bought back in Q4 2023 Q4 and FY Re
Slide 15: We are well advanced in our multi-year capex program
We are well advanced in our multi-year capex program; most important projects completed or close to completion CAPEX development (€ millions) 418 306 280 -290 252 c. 200 84 36 2019 2020 2021 2022 2023 2024E 2025E ● 2024 capex primarily comprises: • RTE production capacity expansion (US, CA, EU) • Co
Slide 16: Strong balance sheet with ample liquidity resources and little financial debt
Strong balance sheet with ample liquidity resources and little financial debt Liquidity vs. financial debt Leverage (at mid point of AEBITDA guidance) (In € millions) (In € millions) Cash on Balance Sheet 433 Cash on Balance Sheet (433) Untapped and available RCF 366 Convertible bonds(1) 172 Total l
Slide 17: 2024 will be a relatively complex transition year for HFG
2024 will be a relatively complex transition year for HFG Key Trends 2024 Group Outlook RTE Meal Kits Constant Currency Revenue Growth • Robust secular demand driving • Relatively soft consumer demand attractive revenue growth • Negative volume growth, but with easing trend in H2 2% - 8% • Ongoing p
Slide 18: Strategic Update Highlights
Strategic Update Highlights
Slide 19: The attractiveness of our customer base has increased significantly over time
The attractiveness of our customer base has increased significantly over time and the value we generate with our existing base is highly predictable …Average at higherorder frequencies… … leading to higher Customer Average order Customers value, order more€(1)items… rate (2) (AOV(1), in €) (in order
Slide 20: We are shifting focus in our meal kit business towards existing customers
We are shifting focus in our meal kit business towards existing customers and stabilization of growth, as we build the muscles required for the next leg of growth Enhancing our physical Launch of HelloFresh Evolution of our pricing product offering Loyalty Program and incentives strategy Focus on va
Slide 21: Targeting faster expansion of meal kit earnings than top-line
With more moderate growth expectations, we will target faster expansion of meal kit earnings than top-line in the coming years Long-term AEBITDA margin profile(1) Measures to improve the margin mid to long term: Right size the cost base and optimize production infrastructure Bring new automated fulf
Slide 22: Growth in 2024 will be driven by RTE, still at relatively low TAM penetration
Growth in 2024 will be driven by RTE, which still operates at a relatively low TAM penetration and has just commenced internationalization RTE Revenue Growth Levers RTE (In € billions) Revenue ~50% Capturing TAM penetration and monetization in the US via deploying our scale-up playbook €1.4bn >10x S
Slide 23: RTE ramp-up will switch from margin headwind to margin tailwind
RTE ramp-up will switch from being a margin headwind to a margin tailwind as we reach greater maturity Long-term AEBITDA margin profile(1) Capitalizing on HFG’s growth playbook and platform to improve the margin Higher AOV through broadening our assortment and add-ons offering Productivity improveme
Slide 24: Summary
Summary Meal kits in consolidation phase in 2023 and 2024: return to sustainable growth will be a function of further improving customer experience Accelerating Group revenue growth expected in 2024: driven by RTE through deploying our proven hyper scale-up playbook Meal kit cost base to be right-si
Slide 25: Appendix
Appendix
Slide 26: Group: Operational and Financial KPIs
Group: Operational and Financial KPIs Q4 22 Q4 23 Active Customers (m) 7.11 6.64 Average Order Rate 4.12 4.29 Average Order Value (€) 63.7 65 Average Order Value constant currency (€) 63.7 67.8 3.4% CC4 % YoY revenue growth1 Revenue1 (0.8)% € (€m) % Revenue 26.9% 27.1% Contribution margin2 (€m) AEBI
Slide 27: NA: Operational and Financial KPIs
NA: Operational and Financial KPIs Q4 22 Q4 23 Active Customers (m) 3.84 3.63 Average Order Rate 4.20 4.33 Average Order Value (€) 75.4 76.3 Average Order Value constant currency (€) 75.4 80.6 4.4% CC4 % YoY revenue growth1 Revenue1 (1.2)% € (€m) % Revenue 29.8% 28.5% Contribution margin2 (€m) AEBIT
Slide 28: International: Operational and Financial KPIs
International: Operational and Financial KPIs Q4 22 Q4 23 Active Customers (m) 3.26 3.01 Average Order Rate 4.03 4.23 Average Order Value (€) 49.4 51.0 Average Order Value constant currency (€) 49.4 51.9 1.6% CC4 % YoY revenue growth1 Revenue1 (0.1)% € (€m) % Revenue 23.0% 26.0% Contribution margin2
Slide 29: Profit and Loss Statement
Profit and Loss Statement 3 months ended Change % 12 months ended Change % 31-Dec-23 31-Dec-22 YoY 31-Dec-23 31-Dec-22 YoY Revenue 1,859.0 1,874.5 (0.8)% 7,596.6 7,607.2 (0.1)% Procurement Expense (670.1) (642.1) 4.4% (2,675.6) (2,620.3) 2.1% Fulfilment Expense (692.0) (733.2) (5.6)% (2,910.7) (3,07
Slide 30: Balance Sheet & Cash Flow Statement
Balance Sheet & Cash Flow Statement In MEUR As at 31-Dec-23 As at 31-Dec-22 Assets Non-current assets 1,756.4 1,623.0 Cash and cash equivalents 433.1 504.0 Other current assets 391.7 408.2 Total assets 2,581.3 2,535.2 Equity and liabilities Equity 1,019.0 959.6 Non-current liabilities 649.3 605.1 Cu
Slide 31: HelloFresh Group
HELLOFRESH GROUP