Berlin / DE. (hf) As HelloFresh SE published its quarterly statement for the second quarter of 2023. The Company achieved its highest ever adjusted Ebitda of EUR 191.9 million (Q2 2022: EUR 145.9 million), which was predominantly driven by continued strong Contribution Margin expansion. Operational efficiencies on both procurement and fulfillment expenses drove a very substantial Contribution Margin uplift by c. three percentage points year-on-year to 28.4 percent for Q2 2023 (Q2 2022: 25.6 percent) as percentage of revenue. The Company’s Contribution Margin has expanded year-on-year for the last four quarters in a row. A disciplined approach to marketing spend, where some budget has been reallocated to the seasonally important autumn period, has further supported adjusted Ebitda growth.
In terms of revenue growth, HelloFresh reached approx. EUR 1.92 billion in the second quarter of 2023, marking a c. 1 percent y-o-y increase on a constant currency basis. Strong average order rates (AOR) of 4.1 (Q2 2022: 4.0) and increased average order value (AOV) of EUR 63.6 (Q2 2022: EUR 60.4; +8.4 percent on a constant currency basis) more than offset a decline in quarterly active customers. The Company expects growth to re-accelerate in the second half of 2023, which will be supported by the production capacity expansion for its ready-to-eat brand Factor and the roll out of a number of product enhancements, as well as comparatively easier benchmarks.
«While being faced with an overall soft consumer environment in the second quarter of 2023, we remain laser focused on providing our customers with a superior product. We have made continuous progress with regards to the level of convenience, choice and flexibility and I am proud of our teams for going the extra mile», says Dominik Richter, CEO and co-founder of HelloFresh. «Profitable growth remains our top priority going into 2024 and we expect to take advantage of opportunities as they arise. We are excited to de-bottleneck the capacity constraints in our ready-to-eat business, which we believe will drive further significant growth to our business. Given our diversified portfolio of brands in the world’s most desirable food markets, our unique physical and technological infrastructure and our globally leading direct-to-consumer capabilities, we are well positioned to become the world’s leading integrated food solutions group.»
Positive Free Cash Flow and recognition of financial strength
Free Cash Flow was positive in Q2 as well as in the first half of the fiscal year 2023, amounting to EUR 38.0 million in the first six months of 2023 and EUR 0.21 per diluted share (H1 2022: EUR (9.6) million and EUR (0.05) respectively). HelloFresh was recently assigned an investment grade «BBB-» rating by SP, illustrating its strong financial profile.
Adjusted outlook for the FY 2023
Based on its solid performance in the first half of the fiscal year 2023, as announced on July 19th, the Company narrows its revenue growth outlook for the fiscal year 2023 for the HelloFresh Group on a constant currency basis from previously between 2 percent and 10 percent to now between 2 percent and 8 percent. Based on the strong Contribution Margin expansion above expectations, the Company also narrows its outlook regarding the adjusted Ebitda for the HelloFresh Group for the fiscal year 2023 from previously between EUR 460 million and EUR 540 million to now between EUR 470 million and EUR 540 million. For additional information read the company’s PDF file below (91 KB):
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