Slide 1: LiNAS odt £P evert
LiNAS odt £P evert Che fF | occ a () retnemtT Adams.
Slide 2: Cheffelo Q2 results
Cheffelo Q2 results 2024-08-20
Slide 3: Today’s agenda and presenters
Today’s agenda and presenters • Cheffelo in brief • Q2 2024 • Financials • Concluding remarks • Q&A Walker Kinman Erik Bergman CEO CFO
Slide 4: Our purpose: Innovating the mealtime experience
Our purpose: Innovating the mealtime experience Our vision: Simplifying everyday life Strong local brands with heritage in innovation and entrepreneurship
Slide 5: Our business model: subscription-based home delivery of mealkits
Our business model: subscription-based home delivery of mealkits • Demand driven business model - Near-zero inventory - Minimal food waste • Local taste preferences - Local chefs and dieticians - Widest selection of recipes • Personalized customer experience - Proprietary tech solutions - AI recomme
Slide 6: Q2 financial highlights
Q2 financial highlights: Double-digit Net sales growth and increasing profitability • Net sales growth in local currency of 11.9% • Fourth consecutive quarter with y-o-y growth • Including the effect from Easter, Net sales growth of 7.6% • Denmark growth of 40% • Return to Active customer growth +0.
Slide 7: Cheffelo enters marketing agreement with Middagsfrid amid mealkit market exit
Cheffelo enters marketing agreement with Middagsfrid amid mealkit market exit • Cheffelo announced this morning a marketing agreement between its Swedish brand Linas Matkasse and Axfood-owned competitor Middagsfrid • Middagsfrid to refer its customer base to Linas as they are exiting the mealkit cat
Slide 8: Improving consumer confidence
Improving consumer confidence - Consumer confidence indexes in the Nordic markets showing steady improvement: - Denmark significantly recovered by end of last year and slightly up in Q2 - Sweden sharply higher in Q2 and almost comparable to Denmark - Norway improved in Q2, still lagging SE and DK -
Slide 9: Net sales development by market – H1 2024
Net sales development by market – H1 2024 Denmark Net sales1) +41.9% (-21.1%) Sweden Net sales +4.4% (-11.0%) Norway Net sales1) -0.3% (-16.6%) 1) Net sales in local currency. • Sweden Online Grocery Index Q2 +5.0% 2) 2) As measured by the Swedish Food Retailers Federation 3) As measured by Danske S
Slide 10: Developing our Brands
Developing our Brands Promising initial results of common Nordic value proposition: • Clear increase from 1H23 to 1H24 in: - Brand liking - Aimed at me - Modern - Trustworthy - Value for money Differentiating Adams Matkasse in Norway • Price increase in August • New family-oriented recipes • More un
Slide 11: 2024 focus remains on strengthening the core
2024 focus remains on strengthening the core Marketing Excellence Long-term profitable growth • Performance marketing and social • Net Sales CAGR of 6-8% selling • >1.2b SEK in 2026 • New Nordic value proposition • EBIT margin approx. 4-6% • Strategic partnerships • 50-70 million range in 2026 Epic
Slide 12: Financials
Financials Cheffelo
Slide 13: Net sales
Net sales +11.9% local currency • Fourth consecutive quarter with growth • Including the Easter week in Q1, Net Sales grew by 7.6% in local currency. 256.9 • Active customers grew by 0.3% while 230.5 Order frequency continues to increase, up 12.6% Q2 Q2 Jan - Jun Jan - Jun LTM FY Δ% Δ% Δ% 2024 2023
Slide 14: Investing in the customer experience
Investing in the customer experience 1.8 pp higher • Controlled Contribution Margin • On track to achieve annual target 1.5 pp lower • Improvements in fulfillment efficiency enabled enhancement in the kitchen experience Q2 Q2 Jan - Jun Jan - Jun LTM FY Δ% Δ% Δ% 2024 2023 2024 2023 Q2 2024 2023 Contr
Slide 15: Increasing EBIT margin
Increasing EBIT margin • EBIT margin increased by 0.9 pp, which resulted in MSEK 4.2 higher EBIT • Low season for customer acquisition gives that Sales and Marketing spend are managed at a relatively lower level during the quarter • Cost for central function increased by MSEK 1.1, although 0.9 pp lo
Slide 16: Increased Free Cash flow
Increased Free Cash flow Q2 Free Cash flow improvement vs LY +11.1 • Solid cash generation with Free Cash flow** of MSEK 6.4 -1.7 +6.4 • Changes in NWC* – seasonal volume effect MSEK towards summer vacation period. +6.6 • Cash and cash equivalents amounted to -9.6 MSEK 104.3 (75.2) MSEK • Dividend o
Slide 17: Looking forward
Looking forward • We expect single digit growth in Q3 - Double-digit growth in Denmark to continue through much of 2024 • We expect to see contribution margins slightly above 30% on an annual basis • Sales and marketing expenses are expected to be around 13% in 2024 • Following the normal seasonal p
Slide 18: Concluding remarks
Concluding remarks = a5 Cheffelo
Slide 19: Takeaways
Takeaways: • Net sales on a local currency basis were up almost 12% in Q2 • Fourth quarter of continued growth • Growth in all markets during Q2 – double digit growth in Denmark • Active customers returned to growth • Increased profitability for 1H • Increased Free cash flow of MSEK 6.4
Slide 20: Q&A
Q&A