HLFFF Q3 2023 Earnings

Call Details

• Call Title: Hellofresh Q3 2023 Earnings Call
• Date: October 26, 2023 at 6:30 AM UTC
• Management Team:
  • Dominik Richter (Chief Executive Officer)
  • Christian Gärtner (Chief Financial Officer)

Call Summary

Financial Performance

• HelloFresh reported constant currency net revenue growth of 3.5% year-over-year to €1.8B in Q3 2023.
• Adjusted EBITDA for Q3 amounted to €69M, corresponding to an EBITDA margin of approximately 3.8%.
• Free cash flow for the first nine months was positive at €45M, which is about €90M higher than the same period last year.
• HelloFresh shipped 237 million meals in Q3, which was down 2.7% year-over-year but represented a sequential improvement versus Q2's approximately 6% decline.
• Average order value (AOV) reached €64.2 in Q3, representing a 7.5% constant currency increase year-over-year.
• North America revenue re-accelerated to 4.3% year-over-year growth while International returned to positive growth of about 2% year-over-year in Q3.

Guidance

• Full-year constant currency revenue growth target remains unchanged at 2% to 8% for 2023.
• Full-year EBITDA guidance is reiterated at €470M to €540M for 2023.
• The company expects contribution margin for the full year to be at least 27% versus 25.5% in 2022.
• The company expects further re-acceleration of top-line growth into the higher single digits throughout Q4 2023.
• Q4 contribution margin is expected to be slightly better than the full-year contribution margin target of 27%.
• There is no change to previously communicated 2025 targets according to the call.