Cheffelo (CHEF) Q3 2024 earnings summary

Executive summary

• Achieved fifth consecutive quarter of year-over-year growth, with net sales up 2.4% (3.8% in local currency) in Q3 and double-digit growth in Sweden; Denmark showed strong gains, while Norway remained flat.

• Growth was driven by improved customer loyalty, higher order frequency, and lower churn, despite stable active customer numbers.

• Organizational changes included appointing a Chief Growth Officer and realigning management to focus on customer acquisition and retention.

• Marketing partnerships, notably with Middagsfrid, contributed positively and are expected to further boost Q4 performance.

• Q3 was seasonally soft, with profitability impacted by higher sales and marketing spend.

Financial highlights

• Q3 net sales were MSEK 216.0, up 2.4% year-over-year (3.8% in local currency); Jan–Sep net sales reached MSEK 761.7, up 4.4%.

• Q3 EBIT was MSEK -17.2, down from -12.8 last year, mainly due to increased sales and marketing expenses; EBIT margin was -8.0%.

• Contribution margin was 27.9% in Q3, with a full-year target to exceed 30%.

• Free cash flow for Q3 was MSEK -3.0, mainly due to working capital timing and absence of a prior year tax refund; Jan–Sep free cash flow was MSEK 31.0.

• Q3 sales and marketing expenses were 19.1% of net sales, expected to be 13% for the full year.

Outlook and guidance

• Q4 is expected to show strong profitability and topline growth, with high single-digit or low double-digit delivery volume growth in Sweden and Denmark; Norway expected to remain flat.

• Contribution margin is anticipated to surpass 30% for the year, with sales and marketing expenses around 13% of net sales.

• Full-year EBIT is projected to increase, supported by improved order frequency and churn.

• On track to achieve long-term net sales growth target of 6%-8% CAGR, aiming for SEK 1.2 billion by 2026.