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 average order values, while meal kits declined due to lower new customer acquisition and strategic marketing reallocation.

• Adjusted EBITDA margin for the group was 7.5% (EUR 146 million), with meal kits at 12.2% and RTE returning to a positive 4%.

• Free cash flow improved to EUR 57 million in Q2, supported by lower CapEx and increased operational efficiency.

• Operational streamlining and cost optimization are underway to align fixed costs with demand and rebuild profitability.

• Secured a new EUR 190 million term loan facility to enhance liquidity and support refinancing.

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, offset by higher AOV.

• Contribution margin before impairment: 24.3%–26%, down year-over-year due to higher RTE production costs and fixed cost deleveraging.

• Free cash flow for H1 2024 rose to EUR 50.9 million, up from EUR 38.0 million in H1 2023.

• Non-cash impairment charges of EUR 44.7 million in H1, mainly related to US meal kit production facilities.

Outlook and guidance

• Full-year 2024 guidance reaffirmed: 2%–8% constant currency revenue growth and Adjusted EBITDA of EUR 350–400 million.

• Q3 revenue growth expected at 1%–2% year-over-year, with EBITDA guidance of EUR 30–50 million, reflecting seasonality and higher marketing spend.

• RTE segment expected to maintain strong growth, though full-year EBITDA margin may be slightly below 4%.

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

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