Slide 1: LiNAS odt fPrLevert
LiNAS odt fPrLevert Cheffelo| ,.... () retnemtT Adams.
Slide 2: Cheffelo Q3 results
Cheffelo Q3 results 2024-11-05
Slide 3: Today’s agenda and presenters
Today’s agenda and presenters • Cheffelo in brief • Q3 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: Q3 highlights
Q3 highlights: Growth continues in seasonally soft quarter • Net sales growth in local currency of 3.8% (2.0%) • Fifth consecutive quarter with y-o-y growth • Increased growth rate expected in Q4 • Double-digit growth in Sweden • Continued improvement in order frequency and reductions in subscriber
Slide 7: Navigating an uncertain macro environment
Navigating an uncertain macro environment - Dynamic market environment with central banks hesitating on interest rate reductions - The fast improvement seen in Danish consumer confidence in 2023 has slowed down - Swedish consumer confidence index is showing a sharp recovery this year to a neutral le
Slide 8: Net sales development by market – Q3 2024
Net sales development by market – Q3 2024 Sweden Net sales +11.9% (4.9%) (Sweden Online Grocery Index Q3 +7.5%) 2) Denmark Net sales1) +8.6% (20.7%) (Denmark Online Grocery Index Jan-Aug +5.3%) 3 Norway Net sales1) 0.1% (-2.6%) 1) Net sales in local currency. 2) As measured by the Swedish Food Retai
Slide 9: Market consolidation effect – good cohorts!
Market consolidation effect – good cohorts! • Last delivery date: May 15, 2023 • Last delivery date: Sept. 16th, 2024 • Orders through Q3-24 • Unique customers through end of Oct: 977 • Over 25k • Order flow tracking at 87% of Kokkens after • Unique customers (over 70% new) comparable start-up phase
Slide 10: Where will growth come from?
Where will growth come from? Long-term growth target: • Net Sales CAGR of 6-8% • >1.2b SEK in 2026 Cheffelo growth will come from: Mealkit category will grow: • Price optimization • Mega-trends • Active customer • Demographics base increase • Increase in • Driving order purchasing power frequency •
Slide 11: But it’s not just about growth
But it’s not just about growth Profitably Increase Market Share Attract high-value customers, efficiently Ensure subscriber loyalty, profitably Desired Business Outcomes • Increase number of new subscribers • Decrease churn rate • Reduce the cost of acquisition • Increase order frequency • Increase
Slide 12: Cheffelo’s new management structure from October
Cheffelo’s new management structure from October CEO Walker Kinman CFO CBDO Erik Bergman Klaus Toft Nørgaard Chief Growth Officer Chief Customer COO CTO Adam Björklund Officer Vibeke Amundsen Anton Nytorp (Jan 25) Claes Stenfeldt • Adam Björklund joining the team at the start of 2025 (Klaus acting)
Slide 13: Financials
Financials Cheffelo
Slide 14: Local Net sales growth of 3.8%
Local Net sales growth of 3.8% +3.8% local currency • Post summer ramp-up slightly later compared to last year • Macro environment was slower than expected 211.0 216.0 • “Bumpy” growth: • Strong performance from existing customers • Fewer New customer acquisition vs LY Q3 Q3 Jan - Sep Jan - Sep LTM
Slide 15: Controlled contribution margin
Controlled contribution margin • On track to achieve annual target • Improvements in fulfillment 27.9% efficiency sponsoring 27.9% enhancements to the kitchen experience Q3 Q3 Jan - Sep Jan - Sep LTM FY Δ% Δ% 2024 2023 2024 2023 Q3 2024 2023 Contribution margin, % 27.9 27.9 0.0 pp 30.3 30.4 -0.1 pp
Slide 16: Sales and marketing
Sales and marketing • In anticipation of an improved macroeconomic environment, we intentionally increased sales and marketing spend • Positive results in Sweden, less so in Norway and Denmark • Marketing cooperation with Middagsfrid MSEK 1 effect in Q3 Q3 Q3 Jan - Sep Jan - Sep LTM FY Δ% Δ% 2024 20
Slide 17: Increasing EBIT margin
Increasing EBIT margin • Seasonal effects, with lower volumes and relatively higher sales and marketing spend, characterize a third quarter • The increased Sales and marketing main reason for lower profitability • Improved profitability in Sweden and Denmark Q3 Q3 Jan - Sep Jan - Sep LTM FY Δ% Δ% 20
Slide 18: Free Cash flow
Free Cash flow • Calendar timing of trade payables impacted NWC* comparison • LY included a tax refund of MSEK 9.0, affecting quarterly comparability Q3 Q3 Jan - Sep Jan - Sep Δ Δ MSEK 2024 2023 2024 2023 Cash flow from operating activities 7.0 39.3 -32.3 60.8 84.5 -23.6 thereof Changes in Net worki
Slide 19: Looking forward
Looking forward • We expect single digit growth in Q4 - Delivery volumes in Sweden and Denmark to reach high single digits or low double-digit - Delivery volumes in Norway expected to be flat • We expect to see contribution margins slightly above 30% on an annual basis • Sales and marketing expenses
Slide 20: Concluding remarks
Concluding remarks = a5 Cheffelo
Slide 21: Takeaways
Takeaways: • Net sales grew in Q3 by 3.8% in local currency with growth in all markets. − Fifth quarter of continued growth − Double-digit growth in Sweden • Middagsfrid marketing partnership developing well • Growth expected to remain bumpy with higher growth again in Q4 • Lower EBIT for the quarte
Slide 22: Q&A
Q&A