HelloFresh SE Quarterly Statement Q3 2021

HelloFresh at a Glance

3 months

3 months

9 months

9 months

Key Figures

ended

ended

YoY growth

ended

ended

YoY growth

30-Sep-21

30-Sep-20

30-Sep-21

30-Sep-20

Key Performance Indicators

Group

Active customers (in millions)

6.94

5.00

38.8%

Number of orders (in millions)

27.59

19.49

41.6%

87.85

52.33

67.9%

Orders per customer

4.0

3.9

2.6%

Meals (in millions)

227.3

162.0

40.3%

720.4

422.2

70.6%

Average order value (EUR)

51.3

49.7

3.2%

Average order value constant currency (EUR)

50.9

49.7

2.4%

USA

Active customers (in millions)

3.48

2.49

39.8%

Number of orders (in millions)

14.12

9.97

41.6%

44.80

27.78

61.3%

Orders per customer

4.1

4.0

2.5%

Meals (in millions)

108.1

72.7

48.7%

340.4

197.9

72.0%

Average order value (EUR)

55.9

52.7

6.1%

Average order value constant currency (EUR)

56.3

52.7

6.8%

International

Active customers (in millions)

3.46

2.51

37.8%

Number of orders (in millions)

13.47

9.52

41.5%

43.05

24.55

75.4%

Orders per customer

3.9

3.8

2.6%

Meals (in millions)

119.2

89.3

33.5%

379.9

224.3

69.4%

Average order value (EUR)

46.5

46.6

(0.2 %)

Average order value constant currency (EUR)

45.4

46.6

(2.6 %)

- 2 -

HelloFresh SE Quarterly Statement Q3 2021

3 months

3 months

9 months

9 months

Key Figures

ended

ended

YoY growth

ended

ended

YoY growth

30-Sep-21

30-Sep-20

30-Sep-21

30-Sep-20

Results of operations

Group

Revenue (in MEUR)

1,415.5

970.2

45.9%

4,413.4

2,641.4

67.1%

Revenue constant currency (in MEUR)

1,405.6

970.2

44.9%

4,534.9

2,641.4

71.7%

Contribution Margin (in MEUR)*

318.0

259.3

22.6%

1,128.0

715.4

57.7%

Contribution Margin (in % of Revenue)*

22.5%

26.7%

(4.2 pp)

25.6%

27.1%

(1.5 pp)

AEBITDA (in MEUR)

79.8

114.7

(30.4 %)

396.8

331.4

19.7%

AEBITDA (in % of Revenue)

5.6%

11.8%

(6.2 pp)

9.0%

12.5%

(3.5 pp)

USA

Revenue (in MEUR)

789.3

526.3

50.0%

2,438.7

1,488.9

63.8%

Revenue constant currency (in MEUR)

794.5

526.3

51.0%

2,599.8

1,488.9

74.6%

Contribution Margin (in MEUR)*

178.9

127.9

39.9%

639.1

387.2

65.1%

Contribution Margin (in % of Revenue)*

22.6%

24.2%

(1.6 pp)

26.1%

25.9%

0.2 pp

AEBITDA (in MEUR)

48.7

57.6

(15.5 %)

232.4

189.1

22.9 %

AEBITDA (in % of Revenue)

6.2%

10.9%

(4.7 pp)

9.5%

12.7 %

(3.2 pp)

International

Revenue (in MEUR)

626.1

443.8

41.1%

1,974.3

1,152.3

71.3%

Revenue constant currency (in MEUR)

611.1

443.8

37.7%

1,935.1

1,152.3

67.9%

Contribution Margin (in MEUR)*

144.0

134.5

7.1%

503.4

337.1

49.3%

Contribution Margin (in % of Revenue)*

22.9%

30.2%

(7.3 pp)

25.4%

29.2%

(3.8 pp)

AEBITDA (in MEUR)

52.3

69.9

(25.2 %)

223.3

180.2

23.9%

AEBITDA (in % of Revenue)

8.3%

15.7%

(7.4 pp)

11.3%

15.6%

(4.3 pp)

Group Financial Position

Net working capital (in MEUR)

(319.3)

(183.8)

(319.3)

(183.8)

Cash flow from operating activities (in MEUR)

85.2

134.8

396.3

416.1

Cash and cash equivalents (in MEUR)

955.1

722.5

955.1

722.5

Free cash flow (in MEUR)

17.7

118.5

250.2

361.3

*Net of share-based compensation expenses

HelloFresh delivers strong performance in Q3 across both segments:

  • Active customers of 6.94m, a 38.8% growth compared to the third quarter 2020.
  • Continued strong customer engagement, with a year-on-year increase in average orders per customer in Q3 2021, despite a more normal seasonality this year.
  • Average order value up year-on-year to EUR 51.3, driven by the US segment.
  • Q3 revenue of MEUR 1,415.5, a year-on-year growth of 45.9% on a euro basis; and 44.9% on a constant currency basis.
  • Both segments show a meaningful growth compared to the same period in the previous year - based on constant currency. The International segment shows a growth of 37.7%; and US a growth of 51.0%.
  • AEBITDA for Q3 of MEUR 79.8 vs. MEUR 114.7 in the prior year period, reflecting primarily the near term impact on contribution margin of a continued rapid expansion of our fulfilment capacity, a more normal seasonality, certain inflation in wages and logistic costs and a normalization in marketing expenses.
  • Both segments delivered a strong quarter of positive AEBITDA margin: International with 8.3% and US with 6.2% of revenue.
  • Continued Free Cash Flow generation with MEUR 17.7 in Q3 2021 alone.
  • Cash on balance sheet of MEUR 955.1 at end of Q3 2021.

- 3 -

HelloFresh SE Quarterly Statement Q3 2021

Financial Performance of the Group

Consolidated income statement for the third quarter 2021 ended 30 September

3 months ended

9 months ended

In MEUR

30-Sep-21

30-Sep-20

YoY

30-Sep-21

30-Sep-20

YoY

Revenue

1,415.5

970.2

45.9%

4,413.4

2,641.4

67.1%

Procurement Expenses

(489.8)

(332.4)

(47.3 %)

(1,509.8)

(915.3)

(65.0%)

% of revenue

(34.6 %)

(34.3 %)

(0.3 pp)

(34.2 %)

(34.7 %)

0.4 pp

Fulfilment Expenses

(613.8)

(379.8)

(61.6 %)

(1,790.4)

(1,014.5)

(76.5 %)

% of revenue

(43.4 %)

(39.1 %)

(4.2 pp)

(40.6 %)

(38.4 %)

(2.2 pp)

Contribution margin

311.9

258.0

20.9%

1,113.3

711.6

56.4 %

Contribution margin (excl. SBC)

318.0

259.3

22.6%

1,128.0

715.4

57.7 %

% of revenue

22.5%

26.7%

(4.3 pp)

25.6%

27.1 %

(1.5 pp)

Marketing Expenses

(209.5)

(124.3)

(68.5 %)

(640.9)

(326.6)

(96.2 %)

% of revenue

(14.8 %)

(12.8 %)

(2.0 pp)

(14.5 %)

(12.4 %)

(2.2 pp)

Marketing Expenses (excl. SBC)

(209.1)

(123.5)

(69.3 %)

(640.6)

(324.4)

(97.5 %)

% of revenue

(14.8 %)

(12.7 %)

(2.0 pp)

(14.5 %)

(12.3 %)

(2.2 pp)

General and Administrative Expenses, other

(61.0)

(41.6)

(46.7%)

(165.9)

(112.2)

(47.9 %)

income and expenses

% of revenue

(4.3 %)

(4.3 %)

- pp

(3.8 %)

(4.2 %)

0.5 pp

General and Administrative Expenses, other

(58.5)

(37.5)

(56.0%)

(164.4)

(100.0)

(64.4 %)

income and expenses (excl. SBC)

% of revenue

(4.1 %)

(3.9 %)

(0.3 pp)

(3.7 %)

(3.8 %)

0.1 pp

EBIT

41.4

92.1

(55.0%)

306.4

272.8

12.3 %

% of revenue

2.9%

9.5%

(6.6 pp)

6.9%

10.3%

(3.4 pp)

Depreciation and Amortization

25.5

11.6

(119.7%)

65.9

33.7

(95.4%)

EBITDA

67.0

103.7

(35.4%)

372.3

306.5

21.5%

% of revenue

4.7%

10.7%

(6.0 pp)

8.4%

11.6%

(3.2 pp)

Special items*

4.0

4.7

15.3%

7.8

6.7

(15.9 %)

Share-based compensation expenses

8.9

6.3

(40.4%)

16.6

18.2

8.6 %

AEBITDA

79.8

114.7

(30.4%)

396.8

331.4

19.7%

% of revenue

5.6%

11.8%

(6.2 pp)

9.0%

12.5%

(3.6 pp)

AEBIT

54.3

103.1

(47.3%)

330.9

297.7

11.2%

% of revenue

3.8%

10.6%

(6.8 pp)

7.5%

11.3 %

(3.8 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 reorganisations and restructurings and prior period related effects. Special items do not adjust for any potential impact that the COVID-19 pandemic might have had on the result of the Group. These remain within normal operation result.

During the third quarter 2021, HelloFresh continued to deliver strong revenue growth compared with the third quarter 2020 with 45.9% growth on a euro basis, and 44.9% on a constant currency basis. As a result, the Group revenue increased from MEUR 970.2 in the third quarter 2020 to MEUR 1,415.5 in this quarter. The revenue growth was driven by a year-on-year increase in active customers by 38.8%, which reached 6.94m, compared to 5.00m in the same period last year, together with a corresponding increase in number of orders. Average order value has further increased to EUR 51.3 against an already ambitious benchmark from last year, primarily driven by an AOV expansion in our US segment. Average order rate per customer has also increased slightly to 4.0, despite a return towards more normal seasonality in the third quarter 2021 compared to the previous year. This has been driven by continued strong customer engagement and retention.

Contribution margin (excluding share-based compensation expenses) as a percentage of revenue in the third quarter 2021 has decreased to 22.5% compared to 26.7% in the third quarter 2020. Procurement expenses have slightly increased across the Group at 34.6% of revenue in Q3 2021 due to certain underlying inflationary trends in ingredient pricing. Fulfilment expenses increased more meaningfully by (4.2 pp) of revenue during the third quarter 2021. This is primarily driven by (i) a continued rapid expansion of our fulfilment capacity and associated launch and ramp-up costs,

  1. a more normal seasonality which means lower fixed cost utilization and higher packaging expenses in the peak summer month July and August, (iii) certain increases in production-related wages, and (iv) rising of logistic costs. Our

- 4 -

HelloFresh SE Quarterly Statement Q3 2021

International segment, which had on a relative basis benefited more from rising capacity utilization in 2020, and was less affected by Covid-headwinds, saw a steeper relative increase in fulfilment expenses compered to our US segment. In Q3 2021, we also had to absorb certain exceptional events, relating to storm-related damages impacting US ready-to- eat production volume for two weeks and Covid-related quarantine measures for some of our production colleagues in Australia and New Zealand impacting production volume over several weeks.

Marketing expenses (excluding shared-based compensation expenses) as percentage of revenue have increased by 2.0

  1. to 14.8% in this period compared to 12.7% in the previous year's period. The increase is driven by a normalization in customer demand and customer acquisition costs in comparison with the same period last year, which was still meaningfully impacted by Covid effects.

General and Administrative expenses and Other Operating income and expenses (including share-based compensation expense) as percentage of revenue have remained stable at 4.3 % from Q3 2020 to Q3 2021. In absolute terms these expenses increased from MEUR 41.6 in the third quarter 2020 to MEUR 61.0 in the third quarter 2021. General and Administrative expenses and Other Operating income and expenses (excluding share-based compensation expense) as percentage of revenue have increased slightly to (4.1 %) from Q3 2020 to Q3 2021.

Reported EBIT amounts to MEUR 41.4 in Q3 2021, a positive margin of 2.9% compared to a positive margin in Q3 2020 of 9.5%. This is a result of the factors described above.

AEBITDA amounts to MEUR 79.8, a positive margin of 5.6%, compared to a positive margin in Q3 2020 of 11.8%.

AEBIT amounts to MEUR 54.3, a positive margin of 3.8%, compared to a positive margin in Q3 2020 of 10.6%.

- 5 -

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HelloFresh SE published this content on 01 November 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 01 November 2021 19:26:06 UTC.