HelloFresh (HFG) Q1 2025 earnings summary

Executive summary

• Q1 2025 focused on executing an efficiency program and enhancing customer offerings in meal kits and ready-to-eat segments, prioritizing profits and cash flow over volume growth.

• Revenue declined year-over-year due to reduced marketing spend and lower order volumes, but AEBITDA surged 245% and free cash flow turned positive.

• Contribution margin expanded by 1.3 percentage points to 27% year-over-year.

• Full-year 2025 outlook confirmed despite macroeconomic uncertainty and FX headwinds.

• Non-cash impairment of EUR 90.5 million recognized in Q1, mainly related to North America meal kit business.

Financial highlights

• Q1 2025 net revenue was EUR 1.93 billion, down 8.3% year-over-year in constant currency, mainly due to reduced meal kit marketing and fewer new customers.

• Adjusted EBITDA (AEBITDA) rose 245% to EUR 58.1 million; adjusted EBIT improved by EUR 46 million year-over-year, excluding impairment.

• Free cash flow improved to EUR 94.3 million from EUR (6.5) million in Q1 2024.

• Group average order value increased 3.8% to EUR 68.1 per order, driven by a shift toward RTE products.

• Marketing expenses as a percentage of revenue decreased by 0.9 percentage points to 22.1%.

Outlook and guidance

• Full-year 2025 guidance maintained: revenue expected to decrease 3% to 8% in constant currency, with H2 anticipated to show re-accelerating growth.

• Adjusted EBIT (pre-impairment) targeted at EUR 200–250 million; AEBITDA expected at EUR 450–500 million.

• Free cash flow expected to more than double in 2025.

• Outlook excludes impact of potential prolonged tariffs in North America.

• Orders anticipated to decline at a slightly higher rate than revenue, while AOV is expected to increase further.