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HelloFresh SE Investor Presentation 2025
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HELLOFRESH
GROUP
Q4 & FY 2024 Results
March 13th, 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. AEBIT, Free Cash Flow pre-leases. 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.
HELLOFRESH
GROUP
Q4 and FY Results 2024
HELLOFRESH
GROUP
We are building the world's leading digital-first FMCG company
2011-2020
Home cooking
2021-2023
Ready-to-Eat (RTE)
2024
Pet Food
Q4 and FY Results 2024
HELLOFRESH
GROUP
We are laser focused on two major objectives
01 Deliver on our efficiency program
02 Create a step change in our customer proposition across MKs and RTE, to return to growth at superior margins and cash flows
Q4 and FY Results 2024 | 4
HELLOFRESH GROUP
Executing on our efficiency program is equally critical to short-term and long-term success
Q4 and FY Results 2024 | 5
HELLOFRESH
GROUP
H2 2024 was the beginning of a period of efficiency reset
| Marketing | Direct costs | Fulfilment network | G&A |
|---|---|---|---|
| ● Higher marketing ROI thresholds | ● Strong productivity improvements | ● Existing network rationalization | ● Simplification of structures & leadership |
| ● Nurture existing customers | ● Maturing of younger DCs | ● Scaled back capital investments | ● Headcount efficiencies |
| Better unit economics | Lower fixed costs | Higher profitability and cash flows | Improved customer offering |
Q4 and FY Results 2024 | 6
2024 Year in Review
- Efficiency reset starts to show first results
- Revenue of €7.7bn, a constant currency growth of 0.9%
- Contribution margin improving throughout the year vs. 2023, driven by productivity improvements
- Continued shift in marketing strategy to target higher value customers, resulting in H2 2024 marketing expenses down yoy both in relative and absolute terms
- AEBITDA at upper end of guidance: €399.4m for FY2024, a 9.8% margin for meal kits⁽¹⁾ and 1.6% for RTE⁽¹⁾
- Q4 AEBITDA margin up yoy for all product groups⁽¹⁾. Meal kits: 14.1% up by c. 3pp; RTE: 5.3%, up by c. 10pp
- FCF per diluted share of €0.42 for FY 2024, stable to last year
- EUR 150m buy-back program completed, new EUR 75m share buy-back program started
HELLOFRESH
GROUP
1. Excl. Holding AEBITDA
Q4 and FY Results 2024
Number of orders down for the FY against a backdrop of higher marketing discipline starting in H2
- Continued focused on higher value customers over volume
- Flagged sequential deceleration in Q4 as a result of not spending against seasonally weaker trends in the 2nd half of the quarter
- Decreasing numbers of orders yoy:
- NA down 10% in Q4 2024
- Intl down 5% in Q4 2024
- Existing customers maintained robust ordering behavior across both NA and Intl markets
Q4 Number of orders (in millions)
FY Number of orders (in millions)
HELLOFRESH
GROUP
Q4 and FY Results 2024
Continued AOV expansion throughout the year
- Further AOV growth in Q4, increasing 4.6% yoy on a cc basis
- Both segments showed meaningful increase in Q4
- NA: 6.4% (CC)
- Intl: 3.1% (CC)
- AOV increase yoy in Q4 driven by
- Increased RTE contribution
- Higher add-on contribution
- Lower price incentives for new customers
Q4 Average Order Value (in €)
FY Average Order Value (in €)
HELLOFRESH
GROUP
Q4 and FY Results 2024
Revenue growth of 0.9% in cc for the full year
- Revenue growth for the FY at the low end of the revised guidance
- By product category, revenue growth for FY in line with expectations:
- Meal kits (9.5%) in CC
- RTE 41.5% in CC
- Q4 revenue declined due to a well flagged stricter stance on marketing spend, particularly in NA:
- NA (4.2%) in CC
- Intl (1.6%) in CC
- Q4 trends expected to continue into Q1 2025
Q4 Group Revenue (in € millions)
FY Group Revenue (in € millions)
HELLOFRESH
GROUP
Q4 and FY Results 2024
FY contribution margin down yoy at 25.8%⁽¹⁾, but improving throughout the year
- Contribution margin down yoy for FY’ 24, but improving sequentially due to:
- Continued productivity improvements in NA RTE
- Continued increases in direct labor productivity in NA meal kits
-
Partially offset by volume deleverage and Intl margin drag from continued DE/UK fulfillment center ramp-up
-
Q4 CM by segment⁽¹⁾:
- NA: 30.3%, increase of 1.7pp yoy
-
Intl: 23.2%, decrease of (2.8pp) yoy
-
€181.5m of impairment recorded in 2024, due to streamlining of production capacity
Q4 Contribution Margin¹ (in % of revenue)
FY Contribution Margin¹ (in % of revenue)
HELLOFRESH
GROUP
- Excl. SBC and impairment
Q4 and FY Results 2024
Marketing spend flat for the year, but down yoy for the second consecutive quarter following a shift in marketing strategy since mid 2024
- Q4 marketing spend¹ down yoy both in relative (3.1pp less than in Q4 2023) and absolute terms, due to continued focus on acquiring high value customers
- Meal kits marketing spend down meaningfully yoy both in relative and absolute terms
- RTE marketing spend up yoy in relative and absolute terms, driven by rapid scaling of customer base within NA and initial launches across several Intl markets
Q4 Marketing Costs¹ (% of net revenue)
FY Marketing Costs¹ (% of net revenue)
HELLOFRESH
GROUP
- Excl. SBC
Q4 and FY Results 2024
The marketing shift was of different magnitude for meal kits in the two reporting segments, with a corresponding impact on revenue growth
- Reduction in marketing spend for North America meal kits in H2 more pointed than for Intl, due to:
- Intl a combination of 16 markets at different stages of growth
- Marketing spend over indexed to North America in 2023
- Opportunities to shift spend to RTE US
- Higher ROI thresholds impact value brands (e.g. EveryPlate) more forcefully
HELLOFRESH
GROUP
Q4 and FY Results 2024
FY 2024 AEBITDA at upper end of guidance with €399.4m, Q4 up meaningfully yoy across all operating segments and product groups
| Q4 | FY | |||
|---|---|---|---|---|
| By segment | ||||
| In MEUR | Q4 2024 | Q4 2023 | FY 2024 | FY 2023 |
| North America | 136.3 | 87.9 | 368.8 | 417.4 |
| International | 68.7 | 59.2 | 186.8 | 175.3 |
| Holding | (39.8) | (33.2) | (155.0) | (145.0) |
| Group | 164.3 | 113.6 | 399.4 | 447.6 |
| By product category | ||||
| --- | --- | --- | --- | --- |
| In MEUR | Q4 2024 | Q4 2023 | FY 2024 | FY 2023 |
| Meal kits | 181.3 | 166.6 | 542.3 | 550.6 |
| AEBITDA margin meal kits | 14.1% | 11.4% | 9.8% | 9.0% |
| RTE | 26.0 | (16.3) | 31.6 | 57.0 |
| AEBITDA margin RTE | 5.3% | (4.2%) | 1.6% | 4.0% |
| Others | (3.1) | (3.4) | (19.4) | (15.1) |
| Holding | (39.8) | (33.2) | (155.0) | (145.0) |
| Group | 164.3 | 113.6 | 399.4 | 447.6 |
HELLOFRESH
GROUP
Q4 and FY Results 2024
AEBIT¹ of €135.9m for FY 2024. Meaningful yoy increase in Q4
- FY AEBIT lower yoy given lower AEBITDA in H1 2024
- AEBIT¹ increased in Q4 24 yoy to €95.2m
- Q4 AEBIT by segment:⁽¹⁾⁽²⁾
- NA: €106.2m, up by 81.8% yoy
- Intl: €44.6m, up by 17.2% yoy
Q4 AEBIT¹ Margin
(in € millions & in % of revenue)
FY AEBIT¹ Margin
(in € millions & in % of revenue)
HELLOFRESH
GROUP
¹ Excl. impairment ² Excl. Holding fee
Q4 and FY Results 2024 | 15
FY meal kit AEBIT¹ margin at 6.6%, up yoy with an accelerating improvement in Q4, despite lower volumes
- Q4 2024 Mealkit AEBIT¹ at 10.6%, up yoy in absolute and relative terms for the second quarter in a row
- Key driver is continued focus on marketing ROI, leading to lower Q4 2024 yoy marketing spend, both in absolute and relative terms
Q4 meal kits AEBIT¹ Margin (in € millions & in % of revenue)
FY meal kits AEBIT¹ Margin (in € millions & in % of revenue)
HELLOFRESH
GROUP
¹ Excl. impairment
Q4 and FY Results 2024 | 16
Break-even FY RTE AEBIT, reflecting continued productivity improvements
- Q4 2024 RTE AEBIT¹ positive at €16.8m, a c.10pp yoy margin improvement
- Primary driver was an improved contribution margin, resulting from direct productivity gains, which are expected to continue into 2025
Q4 RTE AEBIT¹ Margin (in € millions & in % of revenue)
FY RTE AEBIT¹ Margin (in € millions & in % of revenue)
HELLOFRESH
GROUP
¹ Excl. impairment
Q4 and FY Results 2024 | 17
Broadly stable Free Cash Flow of €73.2m⁽¹⁾ for FY 2024
- FY 2024 Cash Flow from Operating activities lower yoy, primarily driven by lower EBIT and temporary adverse impact from changes in working capital
- Capex significantly reduced yoy from EUR 305.8m in 2023 to EUR 166.1m in 2024
- Acceleration of capex streamlining measures
- Some deferral of capex payments into 2025 (teens EURm)
HELLOFRESH
GROUP
1. Before repayment of lease liabilities
Q4 and FY Results 2024 | 18
2025 Outlook: Focus on efficiency reset
| FY 2024 | 2025 outlook^{(1)} | ||
|---|---|---|---|
| Revenue | |||
| (cc growth) | €7.66bn | (3)% – (8)% | • Meal kits down more than (10)% |
| • RTE growth low to mid teens | |||
| AEBIT | |||
| (before impairment) | €136m | €200-250m | |
| AEBITDA | €399m | €450-500m | |
| FCF | |||
| (pre leases) | €73m | • Primarily driven by AEBIT increase | |
| • CapEx broadly stable |
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
Q4 and FY Results 2024
HELLOFRESH GROUP
Our efficiency measures target to disproportionately and sustainably boost profitability and cash generation
AEBITDA
MEUR
~12-25%
399.4
2024
2025
AEBIT⁽¹⁾
MEUR
~45-80%
135.9
2024
2025
FCF/diluted share
>> +100%
0.42
2024
2025
⁽¹⁾ Excluding impairment
Q4 and FY Results 2024 | 20
Appendix
Group: Operational and Financial KPIs
| Q4 23 | Q4 24 | |
|---|---|---|
| Average Order Value (€), excl. retail | 65.0 | 68.4 |
| Average Order Value constant currency (€), excl. retail | 65.0 | 68.0 |
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
Q4 and FY Results 2024
NA: Operational and Financial KPIs
| Q4 23 | Q4 24 | |
|---|---|---|
| Average Order Value (€), excl. retail | 76.3 | 81.5 |
| Average Order Value constant currency (€), excl. retail | 76.3 | 81.2 |
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
Q4 and FY Results 2024
International: Operational and Financial KPIs
| Q4 23 | Q4 24 | |
|---|---|---|
| Average Order Value (€), excl. retail | 51.0 | 53.1 |
| Average Order Value constant currency (€), excl. retail | 51.0 | 52.6 |
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
Q4 and FY Results 2024
Profit and Loss Statement
| 3 months ended | Change % | ||
|---|---|---|---|
| 31-Dec-24 | 31-Dec-23 | YoY | |
| Revenue | 1,808.5 | 1,859.0 | (2.7)% |
| Procurement and cooking expenses | (680.0) | (670.1) | 1.5% |
| Fulfilment expenses | (777.4) | (692.0) | 12.3% |
| Contribution Margin | 351.2 | 496.9 | (29.3)% |
| % of Revenue | 19.8% | 27.1% | (7.3)pp |
| Marketing Expense | (292.0) | (356.7) | (18.1)% |
| G&A | (103.5) | (97.0) | 6.7% |
| Other Operating Income (Expenses) | (27.0) | (9.5) | |
| EBIT | (71.2) | 33.7 | (311.1)% |
| % of Revenue | (3.9)% | 1.8% | (5.8)pp |
| EBT | (57.4) | 13.6 | (521.3)% |
| Income Tax | 28.9 | (25.0) | (215.9)% |
| Net Income / (Loss) | (28.4) | (11.3) | 150.6% |
| 12 months ended | Change % | ||
| --- | --- | --- | |
| 31-Dec-24 | 31-Dec-23 | YoY | |
| 7,661.3 | 7,596.6 | 0.9% | |
| (2,883.1) | (2,675.6) | 7.8% | |
| (3,017.6) | (2,910.7) | 3.7% | |
| 1,760.5 | 2,010.3 | (12.4)% | |
| 23.4% | 26.9% | (3.5)pp | |
| (1,455.0) | (1,440.5) | 1.0% | |
| (424.9) | (411.0) | 3.4% | |
| (57.7) | (46.2) | ||
| (177.1) | 112.5 | (257.4)% | |
| (2.3)% | 1.5% | (3.8)pp | |
| (179.4) | 73.3 | (344.6)% | |
| 42.3 | (55.2) | (176.6)% | |
| (137.1) | 18.1 | (856.9)% | |
| Reconciliation starting at EBIT | |||
| --- | --- | --- | --- |
| EBIT | (71.2) | 33.7 | (311.1)% |
| D&A & impairment | 202.3 | 67.7 | 198.7% |
| EBITDA | 131.0 | 101.5 | 29.2% |
| % of Revenue | 7.2% | 5.5% | 1.8pp |
| SBC | 18.3 | 13.3 | 37.5% |
| Special Items | 15.0 | (1.1) | nm |
| AEBITDA | 164.3 | 113.6 | 44.6% |
| % of Revenue | 9.1% | 6.1% | 3.0pp |
| (177.1) | 112.5 | (257.4)% | |
| --- | --- | --- | |
| 444.7 | 231.3 | 92.2% | |
| 267.5 | 343.8 | (22.2)% | |
| 3.5% | 4.5% | (1.0)pp | |
| 94.4 | 82.0 | 15.0% | |
| 37.5 | 21.7 | 72.8% | |
| 399.4 | 447.6 | (10.8)% | |
| 5.2% | 5.9% | (0.7)pp |
HELLOFRESH
GROUP
Q4 and FY Results 2024
Financial Position & Cash Flow Statement
| In MEUR | As at 31-Dec-24 | As at 31-Dec-23 |
|---|---|---|
| Assets | ||
| Non-current assets | 1,745.3 | 1,756.4 |
| Cash and cash equivalents | 486.7 | 433.1 |
| Other current assets | 400.7 | 391.7 |
| Total assets | 2,632.7 | 2,581.3 |
| Equity and liabilities | ||
| Equity | 888.4 | 1,019.0 |
| Non-current liabilities | 768.2 | 649.3 |
| Current liabilities | 976.1 | 913.0 |
| Total equity and liabilities | 2,632.7 | 2,581.3 |
| In MEUR | 2024 | 2023 |
| --- | --- | --- |
| Cash and cash equivalents at the beginning of the year | 433.1 | 504.0 |
| Net Cash flows from operating activities | 239.3 | 383.8 |
| Net Cash flows used in investing activities | (162.6) | (339.6) |
| Thereof related to acquisition of companies | — | (34.5) |
| Net Cash flows used in financing activities | (26.9) | (110.8) |
| Effects of exchange rate changes and other changes on cash and cash equivalents | 3.7 | (4.2) |
| Cash and cash equivalents at the end of the year | 486.7 | 433.1 |
HELLOFRESH
GROUP
Q4 and FY Results 2024
HELLOFRESH
GROUP