HLFFF Q1 2024 Earnings

Call Details

• Call Title: Hellofresh Q1 2024 Earnings Call
• Date: April 25, 2024 at 6:30 AM UTC
• Management Team:
  • Dominik Richter (Chief Executive Officer)
  • Christian Gärtner (Chief Financial Officer)

Call Summary

Financial Performance

• Group net revenue was €2.1B in Q1 2024, representing the highest quarterly revenue in company history and up 3.8% on a constant currency basis versus Q1 2023.
• Group orders totaled 32 million in Q1 2024, down 2.6% year over year.
• Group average order value expanded by 6.5% on a constant currency basis year over year.
• RTE net revenue grew 56% year over year to over €500M in Q1, implying an annualized run rate above €2.0B.
• Meal kit net revenue declined roughly 7% year over year in Q1 2024.
• Adjusted EBITDA was positive €17M in Q1 2024, equivalent to an adjusted EBITDA margin just below 1% for the group.

Guidance

• Full year 2024 outlook was reiterated at 2% to 8% constant currency revenue growth and adjusted EBITDA of €350M to €400M.
• Indicative Q2 2024 EBITDA margin was guided to approximately 5.5% to 7%.
• Q2 2024 is expected to have slightly softer year-on-year order and revenue growth versus Q1 due to marketing budget allocation between Q1 and Q2.
• Expect sequentially higher contribution margins in Q2 versus Q1 but down year-on-year due to temporary RTE production ramp-up and new meal kit fulfillment center ramp costs.
• The company expects H2 2024 to be weighted to profitability as RTE ramp effects moderate and productivity improves at new sites.
• No changes to the previously communicated multi-quarter targets were introduced on the call.