Q1 2025 Hellofresh SE Earnings Call Transcript
Key Points
- HelloFresh SE (HLFFF) reported a significant increase in adjusted EBITDA, up 245% to EUR58.1 million year over year.
- The company achieved a substantial improvement in free cash flow, increasing by about EUR100 million year over year.
- Contribution margin expanded by 1.3 points to 27%, driven by efficiency improvements.
- North America saw a remarkable increase in contribution margin, up by 290 basis points.
- The company is on track to expand its contribution margin by approximately 100 basis points for the full year 2025.
- Net revenue declined by 8.3% year over year, primarily due to reduced marketing expenses and lower new customer additions.
- Meal kit orders in North America declined by about 18% in Q1.
- The international segment experienced a temporary reduction in contribution margin by 80 basis points due to the ramp-up of automated sites.
- Ready-to-eat (RTE) segment saw a temporary decrease in EBITDA margin by approximately 4 percentage points year over year.
- The company faces macroeconomic uncertainties, including potential tariffs, FX headwinds, and unclear consumer confidence, particularly in the US.
Good morning, ladies and gentlemen. I'm here today with Christian, our CFO to present the Q1 earnings and provide some context on our recent financials. After deep diving on our strategy for 2025 and 2026 on our recent capital markets day in late March, we'll try to keep the strategic updates brief today and focus on the financial performance in Q1, as well as our outlook for the remainder of the year.
What is worth reemphasizing though, are the two objectives that we're laser-focused on right now as a company. Firstly, deliver on our efficiency program. And secondly, create a step change in our customer offerings. So we can expand the total addressable market that we go after and eventually return to a multi-year growth trajectory. This includes both meal kits and RTE. Even though they are at very different stages of growth, we strongly believe that a much improved customer offering will pave the road to predictable and sustainable mid-term growth and a continuously larger time to go after for our
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