HelloFresh SEQuarterly Statement Q3 2022

HelloFresh at a Glance

3 months

3 months

YoY

Key figures

ended

ended

growth

30-Sep-22

30-Sep-21

Key Performance Indicators

Group

Active customers (in millions)

7.51

6.94

8.2 %

Number of orders (in millions)

29.03

27.59

5.2 %

Orders per customer

3.87

3.98

(2.8 %)

Meals (in millions)

243.3

227.3

7.0 %

Average order value (EUR) (excl. retail)

63.7

51.3

24.2 %

Average order value constant currency (EUR)

57.2

51.3

11.5 %

(excl. retail)

USA

Active customers (in millions)

3.67

3.48

5.5 %

Number of orders (in millions)

15.06

14.12

6.7 %

Orders per customer

4.10

4.06

1.1 %

Meals (in millions)

118.2

108.1

9.4 %

Average order value (EUR) (excl. retail)

76.1

55.9

36.1 %

Average order value constant currency (EUR)

65.0

55.9

16.3 %

(excl. retail)

International

Active customers (in millions)

3.84

3.46

11.0 %

Number of orders (in millions)

13.97

13.47

3.7 %

Orders per customer

3.64

3.90

(6.6 %)

Meals (in millions)

125.0

119.2

4.9 %

Average order value (EUR) (excl. retail)

50.4

46.5

8.4 %

Average order value constant currency (EUR)

48.7

46.5

4.7 %

(excl. retail)

9 months

9 months

YoY

ended

ended

growth

30-Sep-22

30-Sep-21

95.87

87.85

9.1 %

800.4

720.4

11.1 %

49.10

44.80

9.6 %

384.0

340.4

12.8 %

46.77

43.05

8.6 %

416.4

379.9

9.6 %

- 2 -

Quarterly Statement Q3 2022

HelloFresh SE

3 months

3 months

YoY

9 months

9 months

YoY

Key figures

ended

ended

ended

ended

growth

growth

30-Sep-22

30-Sep-21

30-Sep-22

30-Sep-21

Results of operations

Group

Revenue (in MEUR)

1,860.2

1,415.5

31.4 %

5,732.7

4,413.4

29.9 %

Revenue constant currency (in MEUR)

1,669.0

1,415.5

17.9 %

5,295.2

4,413.4

20.0 %

Contribution margin (in MEUR)*

454.9

318.0

43.1 %

1,437.9

1,128.0

27.5 %

Contribution margin (in % of revenue)*

24.5 %

22.5 %

2.0 pp

25.1 %

25.6 %

(0.5 pp)

AEBITDA (in MEUR)

71.8

79.8

(10.0 %)

317.1

396.8

(20.1 %)

AEBITDA (in % of revenue)

3.9 %

5.6 %

(1.7 pp)

5.5 %

9.0 %

(3.5 pp)

USA

Revenue (in MEUR)

1,146.5

789.3

45.3 %

3,412.6

2,438.7

39.9 %

Revenue constant currency (in MEUR)

979.3

789.3

24.1 %

3,033.4

2,438.7

24.4 %

Contribution margin (in MEUR)*

292.9

178.9

63.7 %

908.5

639.1

42.2 %

Contribution margin (in % of revenue)*

25.4 %

22.6 %

2.8 pp

26.5 %

26.1 %

0.4 pp

AEBITDA (in MEUR)

75.7

48.7

55.4 %

271.2

232.4

16.7 %

AEBITDA (in % of revenue)

6.6 %

6.2 %

0.4 pp

7.9 %

9.5 %

(1.6 pp)

International

Revenue (in MEUR)

713.7

626.1

14.0 %

2,319.9

1,974.3

17.5 %

Revenue constant currency (in MEUR)

689.7

626.1

10.2 %

2,261.8

1,974.3

14.6 %

Contribution margin (in MEUR)*

173.3

144.0

20.3 %

556.0

503.4

10.4 %

Contribution margin (in % of revenue)*

24.0 %

22.9 %

1.1 pp

23.8 %

25.4 %

(1.6 pp)

AEBITDA (in MEUR)

31.7

52.3

(39.4 %)

141.7

223.3

(36.5 %)

AEBITDA (in % of revenue)

4.4 %

8.3 %

(3.9 pp)

6.1 %

11.3 %

(5.2 pp)

Group Financial Position

Net working capital (in MEUR)

(427.5)

(319.3)

(427.5)

(319.3)

Cash flow from operating activities (in MEUR)

88.1

85.2

265.2

396.3

Cash and cash equivalents (in MEUR)

603.7

955.1

603.7

955.1

Free cash flow (in MEUR)

(52.3)

17.7

(86.7)

250.2

*excluding share-based compensation (SBC) expenses

HelloFresh delivers strong performance in Q3 across both segments:

  • Active customers increased to 7.51 m, a 8.2 % growth compared to the third quarter 2021.
  • Average order value increased further to EUR 63.7, driven by both segments.
  • Group revenue of MEUR 1,860.2 in Q3 2022, a year-on-year growth of 31.4 % on euro basis and 17.9 % on a constant currency basis. Both segments contributed meaningfully to this growth. The International segment shows a growth in revenue of 10.2 %; and the US a growth of 24.1 %, both on a constant currency basis.
  • Absolute contribution margin of MEUR 454.9 in Q3 2022, compared to MEUR 318.0 in Q3 2021. As percentage of revenue 24.5 % in Q3 2022 compared to 22.5 % in Q3 2021, primarily driven by continued productivity improvements in production despite meaningful inflationary trends in both segments.
  • AEBITDA of MEUR 71.8 in Q3 2022 compared to MEUR 79.8 in the prior year quarter, reflecting higher marketing spend.
  • Both segments delivered a strong quarter of positive AEBITDA margin: International with 4.4 %, and US with 6.6 % of revenue.
  • Cash on balance sheet remained at a strong level of MEUR 603.7 at the end of Q3 2022.

- 3 -

HelloFresh SEQuarterly Statement Q3 2022

Financial Performance of the Group

Consolidated income statement for the third quarter 2022 ended 30 September

In MEUR

3 months ended

9 months ended

30-Sep-22

30-Sep-21

YoY

30-Sep-22

30-Sep-21

YoY

Revenue

1,860.2

1,415.5

31.4 %

5,732.7

4,413.4

29.9 %

Procurement expenses

(644.5)

(489.8)

31.6 %

(1,978.1)

(1,509.8)

31.0 %

% of revenue

(34.6 %)

(34.6 %)

0.0 pp

(34.5 %)

(34.2 %)

(0.3 pp)

Fulfilment expenses

(768.0)

(613.8)

25.1 %

(2,337.5)

(1,790.4)

30.6 %

% of revenue

(41.3 %)

(43.4 %)

2.1 pp

(40.8 %)

(40.6 %)

(0.2 pp)

Contribution margin

447.6

311.9

43.5 %

1,417.0

1,113.3

27.3 %

% of revenue

24.1 %

22.0 %

2.0 pp

24.7 %

25.2 %

(0.5 pp)

Contribution margin (excl. SBC)

454.9

318.0

43.1 %

1,437.9

1,128.0

27.5 %

% of revenue

24.5 %

22.5 %

2.0 pp

25.1 %

25.6 %

(0.5 pp)

Marketing expenses

(333.8)

(209.5)

59.4 %

(980.7)

(640.9)

53.0 %

% of revenue

(17.9 %)

(14.8 %)

(3.1 pp)

(17.1 %)

(14.5 %)

(2.6 pp)

Marketing expenses (excl. SBC)

(331.2)

(209.1)

58.4 %

(972.9)

(640.6)

51.9 %

% of revenue

(17.8 %)

(14.8 %)

(3.0 pp)

(17.0 %)

(14.5 %)

(2.5 pp)

General and administrative expenses, other

(112.6)

(61.0)

84.8 %

(304.6)

(165.9)

83.6 %

operating income and expenses

% of revenue

(6.1 %)

(4.3 %)

(1.7 pp)

(5.3 %)

(3.8 %)

(1.6 pp)

General and administrative expenses, other

(102.9)

(58.5)

75.9 %

(276.6)

(164.4)

68.2 %

operating income and expenses (excl. SBC)

% of revenue

(5.5 %)

(4.1 %)

(1.4 pp)

(4.8 %)

(3.7 %)

(1.1 pp)

EBIT

1.2

41.4

(97.0 %)

131.7

306.4

(57.0 %)

% of revenue

0.1 %

2.9 %

(2.9 pp)

2.3 %

6.9 %

(4.6 pp)

Depreciation and amortization

44.6

25.5

74.6 %

113.1

65.9

71.7 %

EBITDA

45.8

67.0

(31.6 %)

244.8

372.3

(34.2 %)

% of revenue

2.5 %

4.7 %

(2.3 pp)

4.3 %

8.4 %

(4.2 pp)

Special items

6.4

4.0

62.5 %

15.7

7.8

101.0 %

Share-based compensation expenses

19.6

8.9

121.4 %

56.6

16.6

240.4 %

AEBITDA

71.8

79.8

(10.0 %)

317.1

396.8

(20.1 %)

% of revenue

3.9 %

5.6 %

(1.8 pp)

5.5 %

9.0 %

(3.5 pp)

AEBIT

27.2

54.3

(49.9 %)

204.0

330.9

(38.3 %)

% of revenue

1.5 %

3.8 %

(2.4 pp)

3.6 %

7.5 %

(3.9 pp)

During the third quarter of 2022, HelloFresh continued to deliver substantial revenue growth of 31.4 % on euro basis, and 17.9 % on a constant currency basis compared to the same quarter of 2021. In absolute values, the Group revenue increased from MEUR 1,415.5 in the third quarter 2021 to MEUR 1,860.2 in this quarter. The increase in revenue is mainly attributable to: (i) a year-on-year increase in active customers by 8.2 %, which reached 7.51 m, compared to 6.94 m in the same quarter of the previous year, and the corresponding increase in number of orders, (ii) an increase in average order value, driven by the take-up of add-ons due to the continued roll-out of HelloFresh Market, increased take-up of surcharge products per order, and year-on-year price increases in several markets, and (iii) the ongoing appreciation of the US dollar, which resulted in a favorable FX effect for revenue in the US segment.

Contribution margin (excluding share-based compensation expenses) as a percentage of revenue in the third quarter 2022 increased to 24.5 % compared to 22.5 % in the third quarter 2021. Procurement expenses as percentage of revenue remained stable for the Group at 34.6 % in Q3 2022 compared to the same quarter in the previous year, despite certain inflationary cost increases in ingredient pricing. Fulfilment expenses as percentage of revenue decreased by 2.1 pp in Q3 2022. This improvement is primarily driven by continued productivity improvements in production despite meaningful inflationary trends across most categories.

- 4 -

HelloFresh SEQuarterly Statement Q3 2022

Marketing expenses (excluding shared-based compensation expenses) as percentage of revenue increased by 3.0 pp to 17.8% in this quarter compared to 14.8 % in the same quarter of the previous year. This is partly due to a more normalized marketing spending in Q3 2022, compared to 2021, which was still impacted by some effects of COVID-19. In addition, this is also the result of somewhat higher customer acquisition costs stemming from a more uncertain macro environment, but also in the US a higher relative share of Factor75 customers, which have a higher than Group-average order value, but also higher customer acquisition costs.

General and administrative expenses, and other operating income and expenses (including share-based compensation expenses) as percentage of revenue increased from 4.3 % in Q3 2021 to 6.1 % in Q3 2022. In absolute terms, these expenses increased from MEUR 61.0 in the third quarter 2021 to MEUR 112.6 in the current quarter. General and administrative expenses, and other operating income and expenses (excluding share-based compensation expenses) as percentage of revenue also increased from 4.1 % in Q3 2021 to 5.5 % in Q3 2022. Key drivers for the increase are further build-out of key functions, especially our tech and data teams as well as other central functions.

The Group reported EBIT of MEUR 1.2 in Q3 2022, a positive margin of 0.1 % compared to a positive margin of 2.9 % in Q3 2021. This is a result of the factors described above.

Special items for Q3 2022 mainly relate to reorganization initiatives in the US and the acquisition related management earnout programs that are in place for Factor75 and YouFoodz.

Share-based compensation expenses amount to MEUR 19.6 in the third quarter of 2022, compared to MEUR 8.9 in the same quarter of 2021. The increase is mainly caused by (i) a change in the program during Q1 2022, resulting in recognition of expenses as per graded vesting schedule compared to the linear vesting that is still used for programs granted in previous years; and (ii) an increased number of participants in the program.

AEBITDA amounts to MEUR 71.8, a positive margin of 3.9 %, compared to MEUR 79.8 in Q3 2021.

AEBIT amounts to MEUR 27.2, a positive margin of 1.5 %, compared to MEUR 54.3 in Q3 2021.

- 5 -

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HelloFresh SE published this content on 27 October 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 October 2022 04:43:06 UTC.