Half Year 2024 Hellofresh SE Earnings Call Transcript
Key Points
- HelloFresh SE (HLFFF) achieved a year-over-year AOV growth of 4.7% in constant currency.
- The company generated net revenues just shy of EUR2 billion, marking a 1% year-on-year growth rate.
- RTE (Ready-to-Eat) segment saw a net revenue growth rate of over 45% year over year.
- Adjusted EBITDA margins for meal kits stabilized at 12.2% in Q2.
- The company increased free cash flow year over year, reaching about EUR57 million in Q2 alone.
- Meal kit segment experienced a 10% year-over-year decline in Q2.
- Non-cash impairment charges of about EUR45 million in H1, with EUR32 million specifically in Q2.
- Fulfillment expenses were impacted by non-recurring non-cash impairment charges on certain US meal kit production facilities.
- Contribution margin decreased by 2.8 percentage points year on year.
- The company is trending towards the lower end of its top-line guidance for the full year 2024.
Welcome, everybody, and thank you for joining our Q2 earnings call. At HelloFresh, we have a powerful mission to rally behind. We change the way people eat forever, and we've come a long way in the last decades.
With meal kits, we've arguably established the biggest innovation to home cooking during that period with millions of satisfied and long term retentive customers ordering hundreds of millions of meals per year. We have also successfully ventured into building the global market leader for RTE meals.
The path to getting to this point, however, was anything, but linear, and we had to navigate in vastly different market environments in the last few years. A demand shock during the pandemic was followed by a strong inflationary pressure period, low consumer confidence, and high interest rates.
Well, our meal kit business today is about 3 times larger and 10 times more profitable than the whole Group was five years ago, we have also built up a fixed cost base that does not match the
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