HLFFF Q4 2023 Earnings

Call Details

• Call Title: Hellofresh Q4 2023 Earnings Call
• Date: March 15, 2024 at 7:30 AM UTC
• Management Team:
  • Dominik Richter (Chief Executive Officer)
  • Christian Gärtner (Chief Financial Officer)

Call Summary

Financial Performance

• The group delivered over 1 billion meals in 2023, representing about 4x growth since early 2019.
• Net revenue compounded at a 33% CAGR from 2019 to 2023.
• Adjusted EBITDA compounded at a 57% CAGR from 2019 to 2023 and came in at €448M for 2023.
• Orders were down 4.7% year over year for the full year and down 2.8% in Q4 year over year.
• Full-year AOV expanded by 7.8% in constant currency and AOV expanded by 6.4% in Q4.
• Full-year revenue grew 2.8% in constant currency, and Q4 revenue grew 3.4% year over year.
• Q4 revenue growth was driven by North America up 4.4% and International up 1.6% in Q4.
• Factor (RTE) achieved €1.4B in net revenue in the referenced period while showing adjusted EBITDA profitability.

Guidance

• The company is targeting constant currency revenue growth of 2% to 8% for fiscal 2024.
• The company expects absolute adjusted EBITDA in 2024 to be lower than 2023 and to land in the range of €350M to €400M.
• The company expects Q1 2024 to be at the lower end of the revenue guidance and to deliver break-even to slightly negative EBITDA margin.
• The company expects RTE to grow around 50% in 2024 and to continue to drive group growth versus meal kits.
• The company expects temporary EBITDA margin compression in 2024 driven by RTE ramp-up costs and elevated marketing as a percentage of revenue.
• The company stated that its previously stated 2025 targets (€10B revenue and €1B EBITDA) are no longer realistic to achieve by 2025.