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HelloFresh SE Investor Presentation 2025
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HELLOFRESH
GROUP
Q1 2025 Results
April 29th, 2025
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 AEBITDA to the most directly comparable IFRS measure.
HELLOFRESH
GROUP
Q1 2025 Results
We are laser focused on two major objectives
- Deliver on our efficiency program
- Create a step change in our customer proposition across MKs and RTE
...to return to growth at superior margins and cash flow profile
HELLOFRESH
GROUP
Q1 2025 Results | 3
Executing on our efficiency program is equally critical to short-term and long-term success
HELLOFRESH GROUP
Q1 2025 Results | 4
Q1 2025 Highlights:
| Progress on efficiency program execution across all levers delivers meaningful yoy uplift of AEBIT(DA) and FCF | |
|---|---|
| Revenue of €1.9bn, a yoy cc decrease of (8.3%), driven primarily by ongoing marketing spend reductions in meal kits, as communicated previously | |
| AEBITDA increase of 245.1% to €58.1m; AEBIT^{(1)} increase by €46.0m to €(3.7)m | |
| FCF^{(2)} increase to €94.3m from €(6.5)m in Q1 2024 | |
| Significant yoy contribution margin^{(1)} expansion of 1.3pp to 27.0% | |
| Driven by a disciplined pursuit of higher performance marketing ROI targets, marketing spend as % of revenue decreased yoy by 0.9pp, despite significant investment in RTE brand marketing in Q1 | |
| FY 2025 outlook confirmed, despite heightened macro uncertainty and FX headwind | |
| Full pipeline of product investments lined up for rest of year |
HELLOFRESH
GROUP
- Excl. impairment 2. Before repayment of lease liabilities
Q1 2025 Results | 5
Lower new customer acquisitions due to continued marketing ROI discipline resulted in a (12 %) decrease in Q1 2025 orders
- Marketing spend reductions primarily focused on NA meal kits
- Therefore, decreasing numbers of orders you primarily originating from NA region:
- NA down (17.8 %) in Q1 2025
- Intl down (3.6 %) in Q1 2025
- Existing higher tenured customers continued to demonstrate strong ordering and retention behavior
HELLOFRESH
GROUP
Q1 2025 Results | 6
AOV expansion continued in Q1 2025
- Group AOV increased by 3.8 % in constant currency
- Both segments demonstrated meaningful increase in AOV:
- NA: 5.9 % (cc)
- Intl: 4.5 % (cc)
- AOV increase primarily driven by product mix shift to RTE and lower price incentives
HELLOFRESH
GROUP
Q1 2025 Results | 7
Revenue of in €1.9bn in Q1 2025, a decrease of (8.3%) in cc
- Q1 2025 revenue growth in line with previous guidance
- In meal kits, a (14.5%) revenue decline in cc, driven by ongoing meaningful reductions in marketing spend
- In RTE, a 8.0% revenue growth in cc
- By geographic segment:
- NA (12.9%) in cc
- Intl 0.8% in cc
HELLOFRESH
GROUP
Q1 2025 Results | 8
Q1 2025 contribution margin improved by 1.3pp yoy to 27.0%^{(1)}
- Contribution margin increased yoy due to strong delivery on efficiency program:
- Meaningful yoy increase in direct labor productivity for both MK and RTE
- Rationalization of MK production capacity
-
Reduction of overhead personnel and ancillary costs
-
Q1 2025 CM by segment^{(1)":
- NA: 30.3%, increase of 2.9pp yoy
-
Intl: 23.3%, decrease of (0.8pp) yoy, impacted by continued DE/UK fulfillment center ramp-up
-
Additional exceptional non-cash impairment of €90.5m taken in Q1 2025
- No significant further impairment expected going forward
HELLOFRESH
GROUP
^{1}
Excl. SBC and impairment
Q1 2025 Results | 9
Marketing spend lower for the third consecutive quarter, illustrating our disciplined ROI approach
- Q1 marketing spend down yoy both in relative and absolute terms, due to continued focus on acquiring higher value customers
- Meal kit marketing spend down very meaningfully yoy both in relative and absolute terms in Q1 2025
- Reductions weighted towards NA
- RTE marketing spend up yoy in relative and absolute terms, driven by significant investments into RTE brand marketing in Q1, continued build-up of customer base and internationalization
- Q1 2025 RTE brand marketing spend increased by > €30m yoy, corresponding to c. 6p.p. of revenue
HELLOFRESH
GROUP
Excl. SBC
Q1 2025 Results | 10
Q1 2025 AEBITDA more than tripled and amounted to €58.1m
| By segment | ||
|---|---|---|
| in € millions | Q1 2024 | Q1 2025 |
| North America | 26.4 | 61.3 |
| International | 28.9 | 41.2 |
| Holding | (38.5) | (44.4) |
| Group | 16.8 | 58.1 |
| By product category | ||
| --- | --- | --- |
| in € millions | Q1 2024 | Q1 2025 |
| Meal kits | 80.7 | 154.1 |
| AEBITDA margin meal kits | 5.2% | 11.4% |
| RTE | (21.3) | (45.9) |
| AEBITDA margin RTE | (4.3)% | (8.4)% |
| Others | (4.0) | (5.8) |
| Holding | (38.5) | (44.4) |
| Group | 16.8 | 58.1 |
HELLOFRESH
GROUP
Q1 2025 Results | 11
AEBIT$^{(1)}$ of €(3.7)m for Q1 2025, improving by €46.0m yoy
- Q1 2025 AEBIT by segment: $^{(1)(2)}$
- NA: €36.0m, up from €(4.2)m
- Intl: €18.2m, up from €6.6m
- Q1 2025 AEBIT by product categories: $^{(1)(2)}$
- Meal Kits: €113.7m, up by 211.4% yoy supported by CM improvements and a continued focus on marketing ROI, resulting in lower marketing spend
- RTE: down yoy to €(53.8)m from €(30.2)m driven by significant brand marketing investments during Q1 2025, continued build-up of customer base and internationalization
HELLOFRESH GROUP
1 Excl. impairment 2 Excl. Holding fee
Q1 2025 Results | 12
Significant step-change in FCF generation to €94.3m⁽¹⁾ in Q1 2025
- Significant uplift in Q1 AEBITDA by €41.2m
- Meaningful cash inflow from WC, after somewhat higher than seasonally normal outflow in Q4 2024
- Capex reduced yoy from €41.2m in Q1 2024 to €34.4m in Q1 2025
- Excess cash partly used in ongoing share buyback: 2.7m shares acquired in Q1 at an average price of €9.47
- Free Cash Flow / diluted share increased from €(0.04) to €0.55
HELLOFRESH
GROUP
1. Before repayment of lease liabilities
Q1 2025 Results | 13
2025 outlook reconfirmed, with the ongoing focus on efficiency program execution
| FY 2024 | 2025 outlook^{(1)} | |
|---|---|---|
| Revenue | ||
| (cc growth) | €7.66bn | (3)% – (8)% |
| AEBIT | ||
| (before impairment) | €136m | €200-250m |
| AEBITDA | €399m | €450-500m |
| FCF | ||
| (pre leases) | €73m | → |
HELLOFRESH
GROUP
- 2025 outlook does not assume the impact of potential prolonged tariffs on agricultural and packaging products in North America.
AEBIT(DA) and FCF outlook assumes us US$/EUR FX rate of 1.04
Q1 2025 Results
Appendix
Group: Operational and Financial KPIs
| Q1 24 | Q1 25 | |
|---|---|---|
| Average Order Value (€) | 64.6 | 68.1 |
| Average Order Value constant currency (€) | 64.6 | 67.0 |
HELLOFRESH
GROUP
-
Revenue post promotional discounts, customer credits, refunds and excluding VAT; YoY stands for year on year and compares the respective quarter with the same quarter of the previous year
-
Contribution Margin is defined as revenue less procurement and cooking expenses, and fulfilment costs. Excl. SBC and impairment
-
AEBITDA is calculated by adjusting EBITDA for special items and share-based compensation expenses; AEBITDA margin is defined as % of revenue
-
Based on constant currency
Q1 2025 Results | 16
North America: Operational and Financial KPIs
| Q1 24 | Q1 25 | |
|---|---|---|
| Average Order Value (€) | 74.8 | 81.0 |
| Average Order Value constant currency (€) | 74.8 | 79.1 |
HELLOFRESH
GROUP
-
Revenue post promotional discounts, customer credits, refunds and excluding VAT; YoY stands for year on year and compares the respective quarter with the same quarter of the previous year
-
Contribution Margin is defined as revenue less procurement and cooking expenses, and fulfilment costs. Excl. SBC and impairment
-
AEBITDA is calculated by adjusting EBITDA for special items and share-based compensation expenses; AEBITDA margin is defined as % of revenue
-
Based on constant currency
Q1 2025 Results | 17
International: Operational and Financial KPIs
| Q1 24 | Q1 25 | |
|---|---|---|
| Average Order Value (€) | 50.6 | 52.9 |
| Average Order Value constant currency (€) | 50.6 | 52.9 |
HELLOFRESH
GROUP
-
Revenue post promotional discounts, customer credits, refunds and excluding VAT; YoY stands for year on year and compares the respective quarter with the same quarter of the previous year
-
Contribution Margin is defined as revenue less procurement and cooking expenses, and fulfilment costs. Excl. SBC and impairment
-
AEBITDA is calculated by adjusting EBITDA for special items and share-based compensation expenses; AEBITDA margin is defined as % of revenue
-
Based on constant currency
Q1 2025 Results | 18
Profit and Loss Statement
| 3 months ended | Change % | ||
|---|---|---|---|
| 31-Mar-25 | 31-Mar-24 | YoY | |
| Revenue | 1,930.7 | 2,073.5 | (6.9)% |
| Procurement and cooking expenses | (734.2) | (786.6) | (6.7)% |
| Fulfillment expense | (773.7) | (774.5) | (0.1)% |
| Contribution Margin | 422.7 | 512.4 | (17.5)% |
| % of Revenue | 21.9% | 24.7% | 2.8pp |
| Marketing Expense | (430.9) | (482.1) | (10.6)% |
| G&A, other income and expenses | (119.4) | (123.0) | (3.0)% |
| EBIT | (127.5) | (92.7) | 37.5% |
| % of Revenue | (6.6)% | (4.5)% | (2.1)pp |
| Financial Result | (16.6) | 6.2 | 367.7% |
| EBT | (144.1) | (86.5) | 66.6% |
| Income Tax | 20.4 | 2.7 | (655.6)% |
| Loss for the period | (123.7) | (83.8) | 47.6% |
| Reconciliation starting at EBIT | |||
| --- | --- | --- | --- |
| EBIT | (127.5) | (92.7) | 37.5% |
| D&A and impairment | 152.3 | 79.1 | 92.5% |
| EBITDA | 24.7 | (13.6) | n.a. |
| % of Revenue | 1.3% | (0.7)% | 1.9pp |
| Special Items | 8.7 | 3.7 | 135.0% |
| SBC | 24.6 | 26.6 | (7.7)% |
| AEBITDA | 58.1 | 16.8 | 245.1% |
| % of Revenue | 3.0% | 0.8% | 2.2pp |
HELLOFRESH
GROUP
Q1 2025 Results | 19
Balance Sheet & Cash Flow Statement
| In MEUR | As at 31-Mar-25 | As at 31-Dec-24 |
|---|---|---|
| Assets | ||
| Non-current assets | 1,620.5 | 1,745.3 |
| Cash and cash equivalents | 519.2 | 486.7 |
| Other current assets | 409.4 | 400.7 |
| Total assets | 2,549.1 | 2,632.7 |
| Equity and liabilities | ||
| Equity | 753.5 | 888.4 |
| Non-current liabilities | 721.2 | 768.2 |
| Current liabilities | 1,074.4 | 976.1 |
| Total equity and liabilities | 2,549.1 | 2,632.7 |
| In MEUR | Q1 2025 | Q1 2024 |
| --- | --- | --- |
| Cash and cash equivalents at the beginning of the period | 486.7 | 433.1 |
| Net Cash flows from operating activities | 128.7 | 34.7 |
| Net Cash flows used in investing activities | (33.9) | (40.6) |
| Net Cash flows used in financing activities | (56.2) | (55.8) |
| Effects of exchange rate changes and other changes on cash and cash equivalents | (6.1) | 0.2 |
| Cash and cash equivalents at the end of the period | 519.2 | 371.7 |
HELLOFRESH
GROUP
Q1 2025 Results | 20
Share Count
As of March 31, 2025
Number of shares issued 173,190,562
Number of shares outstanding 160,464,486
Number of treasury shares 12,726,076
| Employee incentive plan | VSO | RSU | Total |
|---|---|---|---|
| Vested (in mn) | 12.7 | 2.1 | 14.8 |
| Unvested (in mn) | 8.8 | 10.4 | 19.2 |
| Outstanding (in mn) | 21.4 | 12.6 | 34.0 |
| WAEP^{1} (in EUR) Vested | 21.65 | — | 18.54 |
| WAEP^{1} (in EUR) Unvested | 11.54 | — | 5.26 |
| WAEP^{1} (in EUR) | 17.51 | — | 11.04 |
HELLOFRESH
GROUP
1Weighted Average Exercise Price
Q1 2025 Results | 21
HELLOFRESH
GROUP