HLFFF Q2 2024 Earnings

Call Details

• Call Title: Hellofresh Q2 2024 Earnings Call
• Date: August 13, 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 for Q2 amounted to €1.95B, representing about 1% year-on-year growth in constant currency.
• Group adjusted EBITDA for Q2 was €146M, equivalent to a 7.5% adjusted EBITDA margin.
• H1 adjusted EBITDA sums to €163M, and Q2 free cash flow was about €57M, with free cash flow increasing €13M year-on-year in H1 despite €95M lower H1 EBITDA versus prior year.
• Orders delivered in Q2 were 29M, which is approximately 1M orders or down 3.6% versus the comparable period one year ago.
• Average order value (AOV) reached a record €67.1 in Q2, with group AOV growth of 4.7% in constant currency and regional AOV increases of North America +5.4% and International +3.7% year-over-year.
• Product mix drove revenue: RTE revenue grew about 46% year-over-year while meal kit revenue declined about 10% year-over-year.
• Regional revenue trends were divergent but modestly positive: North America revenue up 0.9% and International revenue up 1.1% year-over-year in Q2.

Guidance

• Full year 2024 guidance is reiterated at 2% to 8% constant currency revenue growth and an EBITDA range of €350M to €400M.
• Company states it is currently trending towards the lower end of the top-line guidance based on H1 performance.
• CFO expects EBITDA for Q3 to be indicatively €30M to €50M, which would be roughly €15M to €35M better than Q1 this year.
• Indicative Q3 revenue growth guidance is around 1% to 2% constant currency with marketing spend sequentially higher due to normal seasonality.
• Ready-to-eat (RTE) full-year adjusted EBITDA may be a touch softer than ~4% and Q3 RTE EBITDA is expected to be lower than Q2 with a healthier Q4 expected.
• 2025 guidance was not provided on the call and will be issued later in the year.