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HelloFresh: expands global leadership in Q1-2018

Berlin / DE. (hf) German HelloFresh SE, the leading global provider of meal kits, further improved key performance indicators in the first quarter of 2018 and was thus able to further expand its global market leadership. The company increased the number of active customers by 61.7 percent to around 1.88 million worldwide (Q1-2017: 1.16 million), and significantly increased consolidated revenue by 59.8 percent on a constant currency basis and 44.0 percent on a EUR-reported revenue basis to EUR 295.6 million (Q1-2017: EUR 205.3 million). Highlights:

  • Customer base expanded by 61.7 percent to 1.88 million (Q1-2017: 1.16 million)
  • Revenues increased by 59.8 percent in constant currency and by 44 percent in EUR -reported currency to EUR 295.6 million (Q1-2017: EUR 205.3 million)
  • Market leadership achieved in the important U.S. market
  • Margin strongly improved year-over-year with A-Ebitda margin expansion of 7.1 percent points vs. the same period last year
  • Positive cash flow and strong liquidity: positive cash flows from operating activities of EUR 6.6 million for the first time; EUR 331m cash on balance sheet
  • Revenue growth outlook for the fiscal year 2018 raised to 30 percent – 35 percent (on a constant currency basis ex. Green Chef)

HelloFresh again posted particularly strong growth in the U.S. segment, where the number of active customers rose by 68.9 percent to 1.21 million and constant currency revenue increased by 72.5 percent. By revenues, the company is now also the market leader in the important U.S. market. Constant currency revenue in the International segment likewise improved significantly by 42.0 percent.

HelloFresh again significantly improved its margin year-over-year. In the first quarter of 2018, the company’s A-Ebitda margin rose by 7.1 pp to (7.3) percent (Q1-2017: (14.4) percent), while the contribution margin increased by 5.8 pp to 26.1 percent (Q1-2017: 20.3 percent).

«We got off to an excellent start in 2018 and continue our strong growth while consistently expanding our margins. As a result, we have strengthened our leading global position and made the barriers to market entry even higher for potential competitors. At the same time, we’re selectively expanding the variety and flexibility of our offering to fulfil even more of our customers’ wishes», said Dominik Richter, CEO and co-founder of HelloFresh SE.

The strong development of HelloFresh is also reflected in the company’s cash flow profile and liquidity position: the company generated positive cash flow from operating activities of EUR 6.6 million for the first time in the first quarter of 2018 and has a solid cash level on balance sheet amounting to EUR 330.9 million.

In view of its strong performance in the first quarter of the year, HelloFresh is raising its revenue growth outlook for the whole of 2018 to 30 percent – 35 percent on a constant currency basis (exclusive the impact of Green Chef, which is expected to add an additional c. $15m revenue per quarter starting in Q2 2018); HelloFresh is also confirming its objective of A-Ebitda breaking even on the group level in Q4 2018 (exclusive the impact of Green Chef).

Selected key performance indicators

Group Q1-2018 Q1-2017 year-over-year in %
Active customers (in millions) 1.88 1.16 61.7
Number of orders (in millions) 6.6 4.2 56.9
Meals delivered (in millions) 48.3 30.6 58.0

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United States Q1-2018 Q1-2017 year-over-year in %
Active customers (in millions) 1.21 0.71 68.9
Number of orders (in millions) 3.9 2.2 73.7
Meals delivered (in millions) 26.5 15.4 72.4

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International Q1-2018 Q1-2017 year-over-year in %
Active customers (in millions) 0.67 0.45 50.3
Number of orders (in millions) 2.7 2.0 38.2
Meals delivered (in millions) 21.8 15.2 43.5

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Key operating indicators

Group Q1-2018 Q1-2017 year-over-year in %
Revenue (in mio.EUR) 295.6 205.3 44.0
Constant currency revenue (in mio.EUR) 328.1 205.3 59.8
Contribution margin (in mio.EUR) 77.1 41.6 85.1
Contribution margin as a % of revenue 26.1 20.3 5.8 pp
Adjusted Ebitda (in mio.EUR) (21.7) (29.6) (26.7)
Adjusted Ebitda as a % of revenue (7.3) (14.4) 7.1 pp

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United States Q1-2018 Q1-2017 year-over-year in %
Revenue (in mio.EUR) 179.5 120.1 49.4
Constant currency revenue (in mio.EUR) 207.1 120.1 72.5
Contribution margin (in mio.EUR) 48.1 22.3 115.3
Contribution margin as a % of revenue 26.8 18.6 8.2 pp
Adjusted Ebitda (in mio.EUR) (13.7) (22.8) (40.1)
Adjusted Ebitda as a % of revenue (7.6) (19.0) 11.4 pp

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International Q1-2018 Q1-2017 year-over-year in %
Revenue (in mio.EUR) 116.1 85.2 36.3
Constant currency revenue (in mio.EUR) 121.0 85.2 42.0
Contribution margin (in mio.EUR) 29.5 20.3 45.2
Contribution margin as a % of revenue 25.4 23.8 1.6 pp
Adjusted Ebitda (in mio.EUR) (1.1) (3.9) (71.3)
Adjusted Ebitda as a % of revenue (1.0) (4.6) 3.6 pp