HelloFresh : Q1 statement / Q1 financial report 2021

HelloFresh SE Quarterly Statement Q1 2021

HelloFresh at a Glance

		3 months ended		3 months ended
Key Figures		31-Mar-21		31-Mar-20		YoY
Key Performance Indicators
Group
Active customers (in millions)		7.28		4.18		74.2%
Number of orders (in millions)		29.28		14.74		98.6%
Orders per customer		4.0		3.5		14.3%
Meals (in millions)		239.1		111.3		114.8%
Average order value (EUR) (Exc. Retail)		49.3		47.4		4.0%
Average order value constant currency (EUR) (Exc. Retail)		51.6		47.4		8.9%
USA
Active customers (in millions)		3.69		2.64		39.8%
Number of orders (in millions)		15.10		8.95		68.7%
Orders per customer		4.1		3.4		20.6%
Meals (in millions)		113.9		61.3		85.8%
Average order value (EUR) (Exc. Retail)		53.1		48.7		9.0%
Average order value constant currency (EUR) (Exc. Retail)		58.0	48.7	19.1%
International
Active customers (in millions)		3.59		1.54		133.1%
Number of orders (in millions)	14.20	5.79		145.3%
Orders per customer		4.0		3.8		5.3%
Meals (in millions)		125.1		50.0		150.2%
Average order value (EUR) (Exc. Retail)		45.2		45.3		(0.2%)
Average order value constant currency (EUR) (Exc. Retail)		44.7	45.3	(1.3%)

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HelloFresh SE Quarterly Statement Q1 2021

		3 months ended		3 months ended
Key Figures		31-Mar-21		31-Mar-20		YoY
Results of operations
Group
Revenue (in MEUR)		1,442.9	699.1	106.4%
Revenue constant currency (in MEUR)		1,510.6		699.1		116.1%
Contribution margin (in MEUR)*		406.6		201.1		102.2%
Contribution margin (in % of Revenue)*		28.2%		28.8%		(0.6pp)
AEBITDA (in MEUR)		159.2		63.1		152.3%
AEBITDA (in % of Revenue)		11.0%		9.0%		2.0 pp
USA
Revenue (in MEUR)		802.4	436.7	83.7%
Revenue constant currency (in MEUR)		876.9		436.7		100.8%
Contribution margin (in MEUR)*		233.6		131.5		77.6%
Contribution margin (in % of Revenue)*		29.1%		30.0%		(0.9pp)
AEBITDA (in MEUR)		92.5		49.6		86.5%
AEBITDA (in % of Revenue)		11.5%		11.3%		0.2 pp
International
Revenue (in MEUR)		640.4	262.2	144.2%
Revenue constant currency (in MEUR)		633.7		262.2		141.7%
Contribution margin (in MEUR)*		177.9		72.3		146.1%
Contribution margin (in % of Revenue)*		27.6%		27.6%		-
AEBITDA (in MEUR)		85.3		26.2		225.6%
AEBITDA (in % of Revenue)		13.3%		10.0%		3.3 pp
Group Financial Position
Net working capital (in MEUR)		(319.3)	(153.4)
Cash flow from operating activities (in MEUR)		208.7		132.5
Cash and cash equivalents (in MEUR)		876.3		299.8
Free cash flow (in MEUR)		171.9		111.3
*Net of share-based compensation expenses

HelloFresh strong Performance in Q1 across over both segments:

• Active number of customers reached 7.28m, driven by strong year-on-year and sequential increases across both segments
• Continued high average order rate of 4.0
• Significant increase in revenue, up by 106.4%, reaching MEUR 1,442.9
• AEBITDA margin up year-on-year by 2.0 pp to 11.0%
• Both segments delivered a strong quarter of positive AEBITDA margin: International with 13.3% and US with 11.5% of revenue
• Capacity expansion fully on track with ramp up of 2 new fulfilment centers in the US and 2 in International in Q1
• Continued strong Free Cash Flow generation with MEUR 171.9 in Q1 2021
• Cash on balance sheet of MEUR 876.3 at quarter end
• Recent US ready-to-eat acquisition Factor already contributing well to Group's success
• 2021 outlook for constant currency growth increased to 35 - 45% and AEBITDA margin outlook narrowed to 10 - 12%

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HelloFresh SE Quarterly Statement Q1 2021

Financial Performance of the Group

Consolidated income statement for the first quarter 2021 ended 31 March

				3 months ended
In MEUR		31-Mar-21		31-Mar-20		YoY
Revenue		1,442.9	699.1	106.4%
Procurement Expenses		(487.3)		(240.6)		(102.5%)
% of revenue	(33.8%)		(34.4%)		0.6 pp
Fulfilment expenses	(553.1)		(258.3)		(114.1%)
% of revenue	(38.3%)		(37.0%)		(1.3pp)
Contribution margin	402.6	200.2		101.1%
Contribution margin (excl. SBC)	406.6	201.1	102.2%
% of revenue	28.2%	28.8%		(0.6pp)
Marketing expenses	(218.0)		(118.6)		(83.8%)
% of revenue	(15.1%)		(17.0%)		1.9 pp
Marketing expenses (excl. SBC)	(217.8)		(118.0)		(84.6%)
% of revenue		(15.1%)		(16.9%)		1.8 pp
General and administrative expenses, other income and	(50.7)		(34.9)		(45.3%)
expenses
% of revenue		(3.5%)		(5.0%)		1.5 pp
General and administrative expenses, other income and	(47.7)		(30.8)		(54.9%)
expenses (excl. SBC)
% of revenue	(3.3%)		(4.4%)		1.1 pp
EBIT		133.9	46.6	187.3%
% of revenue		9.3%		6.7%		2.6 pp
Depreciation and amortization	15.6	10.6		(47.2%)
EBITDA		149.5	57.2	161.4%
% of revenue		10.4%		8.2%		2.2 pp
Special items*		2.5		0.3		(733.3%)
Share-based compensation expenses	7.1	5.6		(26.8%)
AEBITDA**		159.2	63.1	152.3%
% of revenue		11.0%		9.0%		2.0 pp
AEBIT**		143.6		52.6		173.0%
% of revenue		10.0%		7.5%		2.5 pp

*Special items consist of share-based compensation expenses and other special items of a nonrecurring nature, which include expenses related to legal and other services incurred in connection with M&A-transactions,one-off costs related to reorganizations and restructurings and prior period related effects. Special items do not adjust for any potential impact that the COVID pandemic may have had on the results of the Group. These remain within normal operating result..

**excluding holding fees

HelloFresh continued to deliver strong growth in revenue in the first quarter 2021 compared to the first quarter 2020 with 106.4% revenue growth on a euro basis and 116.1% on a constant currency basis. As a result, the Group revenue increased from MEUR 699.1 in the first quarter 2020 to MEUR 1,442.9 in the first quarter 2021. Revenue growth has been driven by (i) a year-on-year increase in active customers by 74.2%, which reached 7.28m compared to 4.18m in the same period last year, (ii) an increase in average order value due to ordering more meals and add-on products per boxes and (iii) a meaningful increase in average orders per customer, especially in our US-Segment.

Contribution margin, excluding share-based compensation expenses, has decreased as a percentage of revenue in the first quarter 2021 to 28.2% compared to 28.8% in the first quarter 2020. This margin compression is a combination of relatively lower procurement expenses, but higher fulfilment expenses.

Reduction in procurement expenses from 34.4% of revenue to 33.8% in Q1 2021 is a result of more favorable supplier terms achieved through higher volumes and continued optimization of our menu planning. Fulfilment expenses increased to 38.3% of revenue in the first quarter of 2021 to 37.0% in 2020. This is primarily driven by the ramp-up of multiple new fulfilment centers during the quarter and adverse weather effects in February in our US operations.

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HelloFresh SE Quarterly Statement Q1 2021

Despite very substantial growth in customers, HelloFresh has been able to reduce its marketing expenses as percentage of revenue, excluding share-based compensation expenses, by 1.9 pp to 15.1% in this period compared to 17.0 % in the previous year's period. This development is overall the result of continued attractive customer acquisition costs and the mix of marketing activities between paid initiatives and price incentives.

General and administrative expenses, including share-based compensation and other operating income and expenses, have grown less than revenue and therefore shrunk from 5.0 % in terms of revenue in Q1 2020 to 3.5% in the first quarter 2021. In absolute terms it increased from MEUR 34.9 in first quarter 2020 to MEUR 50.7 in the first quarter 2021.

Reported EBIT increased to MEUR 133.9 in Q1 2021, a positive margin of 9.3% compared to a positive margin in Q1 2020 of 6.7%. This is a result of the factors described above.

AEBIT increased to MEUR 143.6, a positive margin of 10.0%, compared to a positive margin in the first quarter of 2020 of 7.5%.

AEBITDA increased to MEUR 159.2, a positive margin of 11.0%, compared to a positive margin in the first quarter of 2020 of 9.0%.

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