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HelloFresh SE Investor Presentation 2022
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Investor Presentation
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Q1 2022 Results
April 28th, 2022
1
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 full or complete description of the Company or the Group. This document does not, and is not intended to, constitute or form part of, and should not be construed as, an offer to sell, or a solicitation of an offer to purchase, subscribe for or otherwise acquire, any securities of the Company, nor shall it or any part of it form the basis of or be relied upon in connection with or act as any inducement or recommendation to enter into any contract or commitment or investment decision or other transaction whatsoever. This document is not directed at, or intended for distribution to or use by, any person or entity that is a citizen or resident or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation or which would require any registration or licensing within such jurisdiction. Persons into whose possession this document comes should inform themselves about, and observe, any such restrictions.
No representation, warranty or undertaking, express or implied, is made by the Company or any other Group company as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or the opinions contained herein, for any purpose whatsoever. No responsibility, obligation or liability is or will be accepted by the Company, any other Group company or any of their officers, directors, employees, affiliates, agents or advisers in relation to any written or oral information provided in this document or in connection with the document. All information in this document is subject to verification, correction, completion, updating and change without notice. Neither the Company, nor any other Group company undertake any obligation to provide the recipient with access to any additional information or to update this document or any information or to correct any inaccuracies in any such information.
A significant portion of the information contained in this document, including market data and trend information, is based on estimates or expectations of the Company, and there can be no assurance that these estimates or expectations are or will prove to be accurate. Where any information and statistics are quoted from any external source, such information or statistics should not be interpreted as having been adopted or endorsed by the Company or any other person as being accurate. All statements in this document attributable to third party industry experts represent the Company's interpretation of data, research opinion or viewpoints published by such industry experts, and have not been reviewed by them. Each publication of such industry experts speaks as of its original publication date and not as of the date of this document.
This document contains forward-looking statements relating to the business, financial performance and results of the Company, the Group or the industry in which the Group operates. These statements may be identified by words such as "expectation", "belief', "estimate", "plan", "target" or "forecast" and similar expressions, or by their context. Forward-looking statements include statements regarding: strategies, outlook and growth prospects; future plans and potential for future growth; growth for products and services in new markets; industry trends; and the impact of regulatory initiatives. These statements are made on the basis of current knowledge and assumptions and involve risks and uncertainties. Various factors could cause actual future results, performance or events to differ materially from those described in these statements, and neither the Company nor any other person accepts any responsibility for the accuracy of the opinions expressed in this document or the underlying assumptions. No obligation is assumed to update any forward-looking statements.
This document includes certain financial measures not presented in accordance with IFRS, including, but not limited to, AEBITDA. These financial measures are not measures of financial performance in accordance with IFRS and may exclude items that are significant in understanding and assessing the Company's financial results. Therefore, these measures should not be considered in isolation or as an alternative to result for the period or other measures of profitability, liquidity or performance under IFRS. You should be aware that the Company's presentation of these measures may not be comparable to similarly titled measures used by other companies, which may be defined and calculated differently. See the appendix for a reconciliation of certain of these non-IFRS measures to the most directly comparable IFRS measure.
Our Mission
We change the way people eat forever
Our Vision
The world's leading, fully integrated foods solution group
Q1 2022 Highlights
Our revenue growth consistently outperforms 'COVID winners', whilst we maintain leading e-commerce AEBITDA margins
*Aggregated Peer Group (Revenue Weighted) revenue consists of Delivery Hero, Ocado, Logitech, Shopify, GoodFood, Marley Spoon, Wayfair, Peloton and JustEat Takeaway. Q1 2022 estimate based on published results, company guidance or analyst estimates
Q1 active customers increased by 17.0% year-on-year to 8.52m in our seasonally strongest quarter
Q1 Active Customers (in Millions) 17.0% 2022 Q1 2021 Q1 2022 • Similarly strong YoY growth across both segments ◦ Intl +18.9% ◦ US +15.2% • Q1 2020: 4.18m [Y-o-2Y +103.8%] 2021
Order rates in Q1 remained strong, substantially ahead of pre-pandemic levels
- Average order rate per customer broadly stable YoY against strong Covid comparison
- Equally strong performance across both segments
- Q1 2020: 3.5 [Y-o-2Y +14.3%]
Q1 Average Order Value meaningfully increased year on year
Q1 2022 Results | 8
Despite emerging from the pandemic, we continue to increase customer value through improved monetization and product innovation
Source: US Credit Card Data looking at cumulative quarterly customer revenue development for the 3rd Quarter cohort in the given year for the HelloFresh brand
Q1 2022 Results | 9
The depth of opportunity in our data optimized product roadmap gives us further confidence in the outlook for customer value growth in 2022
| Menu Size Expansion |
• >100 recipe slots to be added across the Group • 20-25% increase in menu size YoY |
|---|---|
| HelloFresh Market |
• Expansion to 100% of US customers • Launching in 3 new INTL markets, in addition to Benelux |
| Recipe Personalization |
• Meaningful increase in recipes that can be customized ◦ >50% of all recipes customizable in H2 |
UPDATE The consistently positive trend in all three topline drivers resulted in revenue growth of 26.4%1
- Strong revenue growth across both segments, despite tough prior year benchmark
- Q1 US CC growth of +27.6%, delivered >€1bn of revenue in a single quarter
- Q1 Intl CC growth of +25.0%
- Q1 2020: €699.1m [Y-o-2Y +173.9%]
Q1 Contribution margin of 25.2% delivered, despite previously communicated macro headwinds and ramp-up expenses
- Procurement cost (0.7) pps1 YoY driven by ingredient price inflation
- Fulfilment costs (2.2) pps1 YoY reflected:
- Ongoing ramp-up of capacity, new markets and brands
- YoY wage increases implemented in H2 2021 and rising fuel costs
- Market mix effects
- Q1 2020: 28.8% [Y-o-2Y (3.6)pp]
Marketing activity back to normal seasonal high in Q1, which amounted to (17.6)% of revenue
- Q1 2021 comparative period impacted by Covid restrictions and capacity limitations in certain markets
- Seasonal allocation of marketing budget back to normal, with Q1 representing most important customer acquisition quarter
- CACs broadly in line with backend of 2021, but up vs. Covid-impacted Q1 2021
- Q1 2020: (17.0)% [Y-o-2Y (0.6)pp]
Our price incentives % of gross revenue is stable, with normal Q1 seasonality observed in the current year
Despite ongoing growth investments, macro-headwinds and seasonally high marketing spending, we delivered Q1 AEBITDA of €99.3m
- Solid start of the year, considering overall environment
- Creates certain flexibility for selected additional growth investments and buffer to absorb potential further ingredient price inflation in rest of the year
- Q1 2020: €63.1m, 9.0% [Y-o-2Y 57.4%, (3.8)pp]
We maintained a strong cash position of €795.7m and expanded our (largely unutilized) credit facility to €400m
- €198.2m cash flow from operations, driven by positive EBITDA and cash inflow from working capital
- Continued investment for long term value creation:
- Capex of €66.4m into PPE and software
- €125.1m share buy back
- €24.8m payment for 1st tranche of Factor purchase price earn-out
- In addition, we further strengthened back-up liquidity, by increasing (largely unutilized) revolving credit facility to €400m and extending term to 2027
We reiterate our Full Year 2022 Outlook of 20% – 26% CC revenue growth and €500m - €580m AEBITDA
| AEBITDA | €500m - €580m |
|---|---|
| --------- | ------------------ |
USA: Operational and Financial KPIs
4.Based on constant currency
International: Operational and Financial KPIs
4.Based on constant currency
Group: Operational and Financial KPIs
4.Based on constant currency
Profit and Loss Statement
| 3 months ended | |||
|---|---|---|---|
| 31-Mar-22 | 31-Mar-21 | YoY | |
| Revenue | 1,915.4 | 1,442.9 | 32.7% |
| Procurement Expense | (661.3) | (487.3) | (35.7)% |
| Fulfilment Expense | (777.6) | (553.1) | (40.6)% |
| Contribution Margin | 476.5 | 402.6 | 18.4% |
| % of Revenue | 25.2% | 28.2% | (3.0)pp |
| Marketing Expense | (339.1) | (218.0) | (55.6)% |
| G&A, other income and expenses | (92.6) | (50.7) | (82.6)% |
| EBIT | 44.8 | 133.9 | (66.5)% |
| % of Revenue | 2.3% | 9.3% | (7.0)pp |
| Financial Result | 4.5 | 4.8 | 6.3% |
| EBT | 49.3 | 138.7 | (64.5)% |
| Income Tax (Expense) / Benefit | (22.3) | (37.1) | 39.9% |
| Net Income / (Loss) | 27.0 | 101.6 | (73.4)% |
| Reconciliation starting at EBIT | |||
| EBIT | 44.8 | 133.9 | (66.5)% |
| D&A | 32.1 | 15.6 | (105.8)% |
| EBITDA | 76.9 | 149.5 | (48.6)% |
| % of Revenue | 4.0% | 10.4% | (6.4)pp |
| Special Items | 5.1 | 2.5 | (104.0)% |
| SBC | 17.3 | 7.1 | (143.7)% |
| AEBITDA | 99.3 | 159.2 | (37.6)% |
| % of Revenue | 5.2% | 11.0% | (5.8)pp |
Balance Sheet & Cash Flow Statement
| In MEUR | As at 31-Mar-22 | As at 31-Dec-21 |
|---|---|---|
| Assets | ||
| Non-current assets | 1,155.0 | 1,055.5 |
| Cash and cash equivalents | 795.7 | 827.1 |
| Other current assets | 364.8 | 326.0 |
| Total assets | 2,315.5 | 2,208.6 |
| Equity and liabilities | ||
| Equity | 828.7 | 896.6 |
| Non-current liabilities | 465.5 | 486.7 |
| Current liabilities | 1,021.3 | 825.3 |
| Total equity and liabilites | 2,315.5 | 2,208.6 |
| In MEUR | Q1 2022 | Q1 2021 |
| Cash and cash equivalents at the beginning of the period | 827.1 | 729.0 |
| Net Cash flows from operating activities | 198.2 | 208.7 |
| Net Cash flows from investing activities | (93.3) | (26.8) |
| of which M&A | (24.8) | — |
| Net Cash flows from financing activities | (146.6) | (48.1) |
| Effects of exchange rate changes and other changes on cash and cash equivalents | 10.3 | 13.5 |
| Cash and cash equivalents at the end of the period | 795.7 | 876.3 |
Share Count
As of March 31, 2022
| Types of share | Ordinary shares |
|---|---|
| Stock exchange | Frankfurt Stock Exchange |
| Market Segment | Regulated Market (Prime Standard) |
| Number of shares issued | 173,934,478 |
| Number of shares outstanding | 171,488,297 |
| Employee incentive plan | Options | RSU | Total |
|---|---|---|---|
| Vested (in mn) | 6.5 | 0.2 | 6.7 |
| Unvested (in mn) | 3.2 | 0.9 | 4.1 |
| Outstanding (in mn) | 9.8 | 1.0 | 10.8 |
| WAEP1 (in EUR) Vested |
12.87 | — | 12.58 |
| WAEP1 (in EUR) Unvested |
44.02 | — | 34.56 |
| WAEP1 (in EUR) |
23.15 | — | 20.94 |