HelloFresh (HFG) Q2 2024 earnings summary

Executive summary

• Group revenue reached EUR 1.95 billion in Q2 2024, up 1% year-over-year, driven by strong RTE growth and higher AOV, despite lower meal kit volumes.

• Adjusted EBITDA margin was 7.5% (EUR 146 million), at the upper end of guidance, though down year-over-year.

• RTE segment revenue grew over 45% year-over-year, while meal kits declined by about 10% year-over-year in Q2.

• Free cash flow increased to EUR 56.6 million in Q2 2024, supported by lower CapEx.

• Strategic focus on cost optimization, streamlining operations, and improving customer experience to rebuild cash flows and profits.

Financial highlights

• Group AOV increased 4.7% year-over-year in constant currency, reaching a record EUR 67.1 in Q2.

• Delivered 29 million orders in Q2, down 3.6% year-over-year, with lower new customer acquisition offset by higher retention and order rates.

• Adjusted EBITDA for H1 totaled EUR 163 million; free cash flow in Q2 was EUR 57 million, up year-over-year due to lower CapEx.

• North America EBITDA: EUR 132 million (10.2% margin); International EBITDA: EUR 54 million (8.1% margin).

• Net income for Q2 2024 was EUR 8.9 million, down from EUR 66.3 million in Q2 2023.

Outlook and guidance

• Full-year 2024 guidance: 2%-8% constant currency revenue growth and Adjusted EBITDA of EUR 350-400 million, trending toward lower end of revenue range.

• Q3 revenue growth expected at 1%-2% year-over-year, with EBITDA guidance of EUR 30-50 million.

• RTE revenue growth expected to continue at 45%-50% year-over-year into H2; meal kit trends to largely prevail.

• CapEx for 2024 reduced to EUR 240 million, with further reductions targeted for 2025 (EUR 200 million).

• Focus remains on efficiency, free cash flow, and profitability expansion over the next 1–2 years.