Berlin / DE. (hf) German HelloFresh SE, the world’s leading meal kit company, has significantly improved its margins while accelerating growth. On group level, the FY A-Ebitda improved to EUR (70) million (FY-2016: EUR (83) million) with an A-Ebitda margin of (7.7) percent (FY-2016: (13.8) percent). On track to break-even, the company managed to continuously expand its margin over the course of the year resulting in a Q4-2017 A-Ebitda margin of (2.4) percent (Q4-2016: (10.3) percent). On segment level, the International business reached full A-Ebitda profitability for the first time, while the US business came close to break-even.
- Strong A-Ebitda margin improvement to (2.4) percent in Q4-2017
- Realisation of profitability in International Segment for the first time in Q4-2017 on A-Ebitda level, break-even also within reach for US Segment
- Acceleration of year-on-year revenue growth to 69 percent in Q4-2017 (in constant currency)
- Audited FY revenues of EUR 905 million (52 percent year-on-year growth; FY-2016: EUR 597 million)
- Positive outlook for 2018: 25-30 percent revenue growth and break-even on A-Ebitda level in Q4-2018
In parallel, HelloFresh continued its strong growth path in both segments. In 2017, HelloFresh delivered over 137 million meals (up 51 percent from FY-2016: 91 million) to its approx. 1.45 million customers (up 69 percent from Q4-2016: 0.86 million) resulting in FY revenues of EUR 905 million (FY-2016: EUR 597 million), corresponding to a revenue growth of 52 percent on group level. In constant currency, the company accelerated the revenue growth rate every quarter with +43 percent in Q1-2017, +52 percent in Q2 2017, +53 percent in Q3 2017 and +69 percent in Q4-2017. On segment level, US Segment grew in 2017 by 90 percent to a revenue of EUR 545 million (FY-2016: EUR 287 million) and the International Segment by 16 percent to EUR 360 million (FY-2016: EUR 310 million).
«2017 marks the most successful year for our business to date. Not only did we successfully list our company on the stock market but we also significantly improved all our key metrics, with an outstanding A-Ebitda expansion in both segments leading the way», says Dominik Richter, CEO and co-founder of HelloFresh SE.
For 2018 the company expects to reach break-even in its core business in Q4-2018 and to grow its FY revenues by 25-30 percent with Q1 revenue growth above that range.
In terms of growth strategy, HelloFresh will primarily focus on increasing the penetration in its core markets by enlarging its customer base and expanding the product portfolio. Through the recent acquisition of the USDA-certified organic meal kit company «GreenChef» in the US, HelloFresh will reach out to new and previously untapped customer segments, including those following organic, vegan and gluten-free lifestyles, as well as Paleo and Keto compliant plans.
Key Performance Indicators
|Active customers (m)||0.86||1.45||68.6%|
|Number of orders (m)||3.2||5.4||67.7%||12.4||19.0||52.9%|
|Meals delivered (m)||23.9||39.5||65.1%||90.9||137.4||51.3%|
|Active customers (m)||0.43||0.89||105.7%|
|Number of orders (m)||1.4||3.0||118.6%||5.1||10.6||108.4%|
|Meals delivered (m)||9.7||20.7||114.4%||35.3||72.2||104.7%|
|Active customers (m)||0.43||0.56||31.0%|
|Number of orders (m)||1.8||2.4||29.3%||7.3||8.3||14.1%|
|Meals delivered (m)||14.2||18.8||31.7%||55.6||65.2||17.4%|
Results of Operations
|Revenue in constant currency (mio.EUR)||158.7||268.5||69.1%||597.0||923.7||54.7%|
|Contribution Margin (in mio.EUR)*||28.9||65.1||124.8%||101.4||207.8||104.9%|
|Contribution Margin (in% of Revenue)||18.2%||25.7%||7.5pp||17.0%||23.0%||6.0pp|
|A-Ebitda (in mio.EUR)||(16.3)||(6.1)||62.6%||(82.6)||(70.1)||15.2%|
|A-Ebitda (in% of Revenue)||(10.3%)||(2.4%)||7.9pp||(13.8%)||(7.7%)||6.1pp|
|Revenue in constant currency (mio.EUR)||79.5||164.2||106.5%||286.9||557.8||94.4%|
|Contribution Margin (in mio.EUR)*||12.2||40.5||231.1||33.9||125.6||270.8%|
|Contribution Margin (in% of Revenue)||15.4%||26.9%||11.5pp||11.8%||23.0%||11.2pp|
|A-Ebitda (in mio.EUR)**||(7.9)||(0.7)||91.1%||(48.0)||(40.5)||15.6%|
|A-Ebitda (in% of Revenue)||(10.0%)||(0.5%)||9.5pp||(16.7%)||(7.4%)||9.3pp|
|Revenue in constant currency (mio.EUR)||79.2||104.2||31.7%||310.1||365.8||18.0%|
|Contribution Margin (in mio.EUR)*||17.4||26.6||53.1%||69.3||87.1||25.6%|
|Contribution Margin (in% of Revenue)||22.0%||26.1%||4.1pp||22.3%||24.2%||1.9pp|
|A-Ebitda (in mio.EUR)**||(5.4)||2.8||151.5%||(27.5)||(9.5)||65.6%|
|A-Ebitda (in% of Revenue)||(6.9%)||2.7%||9.6pp||(8.9%)||(2.6%)||6.2pp|
Group Financial Position
|Net working capital||(30.8)||(62.1)||(30.8)||(62.1)|
|Cash and Cash equivalents||57.5||339.9||57.5||339.9|
|Cash flow used in operating activities||(33.0)||(13.1)||(76.1)||(45.5)|
HelloFresh is the world’s leading meal kit company, operating in the U.S., the United Kingdom, Germany, the Netherlands, Belgium, Luxembourg, Australia, Austria, Switzerland and Canada. HelloFresh delivered 39.5 million meals in the 3-month period from 1 October 2017 to 31 December 2017 to 1.45 million active customers. HelloFresh was founded in November 2011 in Berlin and went public in November 2017 at the Frankfurt Stock Exchange in Germany. HelloFresh has offices in New York, Berlin, London, Amsterdam, Zurich, Sydney and Toronto.