Q3 2020 RESULTS
November 3th, 2020
1
Disclaimer
This document has been prepared by HelloFresh SE (the "Company" and, together with its subsidiaries, the "Group"). All material contained in this document and information presented is for information purposes only and must not be relied upon for any purpose, and does not purport to be a full or complete description of the Company or the Group. This document does not, and is not intended to, constitute or form part of, and should not be construed as, an offer to sell, or a solicitation of an offer to purchase, subscribe for or otherwise acquire, any securities of the Company, nor shall it or any part of it form the basis of or be relied upon in connection with or act as any inducement or recommendation to enter into any contract or commitment or investment decision or other transaction whatsoever. This document is not directed at, or intended for distribution to or use by, any person or entity that is a citizen or resident or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation or which would require any registration or licensing within such jurisdiction. Persons into whose possession this document comes should inform themselves about, and observe, any such restrictions.
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This document includes certain financial measures not presented in accordance with IFRS, including, but not limited to, AEBITDA. These financial measures are not measures of financial performance in accordance with IFRS and may exclude items that are significant in understanding and assessing the Company's financial results. Therefore, these measures should not be considered in isolation or as an alternative to result for the period or other measures of profitability, liquidity or performance under IFRS. You should be aware that the Company's presentation of these measures may not be comparable to similarly titled measures used by other companies, which may be defined and calculated differently. See the appendix for a reconciliation of certain of these non-IFRS measures to the most directly comparable IFRS measure.
Q3 2020 RESULTS | 2 |
Third Quarter Highlights
Refresh of Corporate Identity
HelloFresh reaches 5.00m active customers for the first time, up 91.5% versus Q3 2019
Record number of orders (19.49m, up 114% from Q3 2019) and meals (162.0m, up 135% from Q3 2019)
Q3 revenue of EUR 970.2m, constituting YoY revenue growth of 120.2% (in constant currency: 127.7 % )
Continued strong Free Cash Flow generation with EUR 118.5m in Q3 2020 alone
AEBITDA margin up year-on-year by 8.3 pp to 11.8%
Q3 2020 RESULTS | 3 |
Group Customer base up strongly, both year-on-year and sequentially
2019 2020
5 M active customers in Q3 2020
- Up 91.5% YoY
- > 800k additional customers vs. Q2 alone
- Strong growth achieved in both segments
Q3 Active Customers
(in Millions)
+92 %
5.0
4.2
2.6
Q3 Q2 Q3
Q3 2020 RESULTS | 4 |
Structurally higher Order Rate, despite easing of lockdown measures in Q3 across
several markets
Q3 Order Rate
2019 2020
Order rates continue to trend meaningfully above previous
base line | 3.5 |
+ 11 %
4.3
3.9
- US up 18.7% YoY
- Intl. up 4.3% YoY
Q3 Q2 Q3
Q3 2020 RESULTS | 5 |
Record number of customer orders in Q3 2020
2019 2020
Driven by both,
- An increase in # of active customers
• A continued high order rate | 9.1 |
Q3 Orders
(in Millions)
+ 114 %
19.5
18.1
Q3 Q2 Q3
Q3 2020 RESULTS | 6 |
Average order value up by c. 7% on a constant currency basis
Q3 Average Order Value (in €)
2019 | + 3 % |
2020 | |
+ 7 % CC | |
Strong YoY AOV development, | 53.7 | |
primarily driven by: | 48.3 | 49.7 |
- Higher add-onstake-rate
- An increased number of meals per order
Q3 Q2 Q3
Q3 2020 RESULTS | 7 |
As a result, we even accelerated further our revenue growth to 128 % (on const.
currency)
2019 2020
- Higher constant currency revenue growth than in the exceptionally strong Q2 2020
- Very little summer seasonality
- Successful ongoing de- bottlenecking and creation of new production capacity across both segments
Q3 Revenue
(in € Millions)
- 120 %
- 128 % CC
972 970
441
Q3 Q2 Q3
Q3 2020 RESULTS | 8 |
Similar triple-digit constant currency revenue growth across both segments
2019 2020
Q3 USA | Q3 INTL | ||||||
(in € Millions) | (in € Millions) | ||||||
+114 % | + 129 % | ||||||
+125 % CC | |||||||
+ 132 % CC | |||||||
526 | 526 | ||||||
446 | 444 | ||||||
247
194
Q3 Q2 Q3Q3 Q2 Q3
Q3 2020 RESULTS | 9 |
Contribution Margin down YoY due to ongoing COVID effects, but up
sequentially | Q3 Contribution margin1 | |
(in % of revenue) | ||
2019 | ||
2020 | ||
- Contribution margin expansion vs. Q2 2020, despite typically higher fulfillment costs during the summer
-0.8 pp
27.5% 26.2% 26.7%
- US segment more affected by temporary Covid-related cost increases than INTL
Q3 Q2 Q3
Q3 2020 RESULTS | 1. Excl. SBC | 10 |
Marketing as % of revenue up sequentially, but meaningfully down YoY
2019 2020
-
Marketing activities still somewhat constrained by capacity limitations across several markets, especially the
US - Continued strong latent demand
- Very attractive customer acquisition costs
Q3 Marketing1
(in % of revenue)
-7.3 pp
20.0%
12.7%
8.5%
Q3 Q2 Q3
Q3 2020 RESULTS | 1. Excl. SBC | 11 |
Very meaningfully AEBITDA growth to € 115m in Q3 2020
Q3 AEBITDA | |
2019 | (in € Millions) |
2020 | |
15.8% | |
• C. 8x growth in AEBITDA YoY | 154 |
- Margin expansion primarily driven by relative marketing savings and G&A leverage
3.5%
16
11.8%
115
Q3 Q2 Q3
Q3 2020 RESULTS | 12 |
AEBITDA margin of > 10% in each segment in each quarter to date
2019 2020
Q3 USA | Q3 Intl. |
(in % of revenue) | (in % of revenue) |
+ 8.3 pp | |||||||||
15.5% | + 5.0 pp | ||||||||
18.8% | |||||||||
11.3% | 10.9% | 14.8% | 15.7% | ||||||
10.7% | 10.0% | ||||||||
6.2% | |||||||||
2.6% | |||||||||
Q3 | Q4 | Q1 | Q2 | Q3 | Q3 | Q4 | Q1 | Q2 | Q3 |
Q3 2020 RESULTS | 13 |
Despite continuing to invest strongly in our capabilities and infrastructure, we generate best-in-class cash flows
2019 2020
Q3 Cash Position
(in € Millions)
723 | ||||||
612 | 111 | |||||
175 | ||||||
300 | 137 | |||||
194 | 106 | |||||
31.12.19 | Q1 FCF & | 31.03.20 | Q2 FCF & | 30.06.20 | Q3 FCF | 30.09.20 |
Other | Other, CB1 | & Other |
Q3 2020 RESULTS | 1. Cash from the issue of convertible bonds with a value of 175 MEUR in May 2020, with a term of 5 years and a coupon of 0.75% | 14 |
Updated FY 2020 Outlook
Guidance | Guidance |
( A u g 2 0 2 0 ) | ( O c t 2 0 2 0 ) |
C o n s t . C u r r e n c y | 75% - 95% | 95% - 105% |
R e v . g r o w t h |
A E B I T D A | 9% - 11% | 11.25% - 12.75% |
m a r g i n |
Q3 2020 RESULTS | 15 |
Appendix
16
USA: Operational and Financial KPIs
Q3 19 | Q3 20 | ||||||||
Active Customers (m) | 1.48 | 2.49 | |||||||
Average Order Rate | 3.4 | 4.0 | |||||||
Average Order Value (€) | 49.4 | 52.7 | |||||||
Average Order Value constant currency (€) | 49.4 | 55.5 | |||||||
% | YoY revenue growth1 | 38.4% | 124.7 % | CC4 | |||||
Revenue1 | 44.9% | 113.5 % | € | ||||||
(€m) | |||||||||
526.3 | |||||||||
246.5 | |||||||||
Contribution | % | Revenue | 24.2% | ||||||
margin2 | 27.5% | ||||||||
(€m) | 127.9 | ||||||||
67.8 | |||||||||
AEBITDA3 | % | Revenue | 2.6% | 10.9% | |||||
(€m) | 57.6 | ||||||||
6.4 | |||||||||
1. Revenue post promotional discounts, customer credits, refunds and excluding VAT; YoY stands for year on year and compares the respective quarter with the same quarter of the previous year | |||||||||
2. Contribution margin is defined as revenue less cost of goods sold and fulfilment expenses, excluding share-based compensation expenses | 17 |
- AEBITDA is calculated by adjusting EBITDA for special items and share-based compensation expenses; AEBITDA margin is defined as % of revenue
- Based on constant currency
INTL: Operational and Financial KPIs
Q3 19 | Q3 20 | ||||||||
Active Customers (m) | 1.13 | 2.51 | |||||||
Average Order Rate | 3.6 | 3.8 | |||||||
Average Order Value (€) | 47.0 | 46.6 | |||||||
Average Order Value constant currency (€) | 47.0 | 47.2 | |||||||
% | YoY revenue growth1 | 47.1% | 131.5 % | CC4 | |||||
Revenue1 | 46.8% | 128.5 % | € | ||||||
(€m) | |||||||||
443.8 | |||||||||
194.2 | |||||||||
Contribution | % | Revenue | 30.2% | ||||||
margin2 | 27.7% | ||||||||
(€m) | 134.5 | ||||||||
53.8 | |||||||||
AEBITDA3 | % | Revenue | 10.7% | 15.7% | |||||
(€m) | 69.9 | ||||||||
20.8 | |||||||||
1. Revenue post promotional discounts, customer credits, refunds and excluding VAT; YoY stands for year on year and compares the respective quarter with the same quarter of the previous year | |||||||||
2. Contribution margin is defined as revenue less cost of goods sold and fulfilment expenses, excluding share-based compensation expenses | 18 |
- AEBITDA is calculated by adjusting EBITDA for special items and share-based compensation expenses; AEBITDA margin is defined as % of revenue
- Based on constant currency
GROUP: Operational and Financial KPIs
Q3 19 | Q3 20 | ||||||||
Active Customers (m) | 2.61 | 5.00 | |||||||
Average Order Rate | 3.5 | 3.9 | |||||||
Average Order Value (€) | 48.3 | 49.7 | |||||||
Average Order Value constant currency (€) | 48.3 | 51.4 | |||||||
% | YoY revenue growth1 | 42.2% | 127.7 % | CC4 | |||||
Revenue1 | 45.8% | 120.2 % | € | ||||||
(€m) | |||||||||
970.2 | |||||||||
440.6 | |||||||||
Contribution | % | Revenue | 26.7% | ||||||
margin2 | 27.5% | ||||||||
(€m) | 259.3 | ||||||||
121.1 | |||||||||
AEBITDA3 | % | Revenue | 3.5% | 11.8% | |||||
(€m) | 114.7 | ||||||||
15.5 | |||||||||
1. Revenue post promotional discounts, customer credits, refunds and excluding VAT; YoY stands for year on year and compares the respective quarter with the same quarter of the previous year | |||||||||
2. Contribution margin is defined as revenue less cost of goods sold and fulfilment expenses, excluding share-based compensation expenses | 19 |
- AEBITDA is calculated by adjusting EBITDA for special items and share-based compensation expenses; AEBITDA margin is defined as % of revenue
- Based on constant currency
Profit and Loss Statement
(€m) | Q3 2019 | Q3 2020 | ||
Revenue | 440.6 | 970.2 | ||
% YoY growth | 45.8 % | 120.2% | ||
Procurement Expenses1 | (156.4) | (332.4) | ||
Gross profit | 284.2 | 637.8 | ||
Margin (% of revenue) | 64.5% | 65.7% | ||
Fulfilment expenses1 | (163.5) | (379.8) | ||
Marketing expenses1 | (88.6) | (124.3) | ||
G&A1 | (30.2) | (39.1) | ||
Other operating income & expenses | (1.0) | (2.5) | ||
EBIT | 0.9 | 92.1 | ||
Margin (% of revenue) | 0.2% | 9.5% | ||
Financial result | 25.4 | (11.5) | ||
EBT | 26.3 | 80.6 | ||
Income tax (expense) benefit | (2.6) | (6.0) | ||
Net income / (loss) | 23.7 | 74.6 | ||
Reconciliation starting at EBIT | ||||
EBIT | 0.9 | 92.1 | ||
D&A | 9.3 | 11.6 | ||
EBITDA | 10.2 | 103.7 | ||
SBC | 5.1 | 6.3 | ||
Special Items2 | 0.2 | 4.7 | ||
AEBITDA3 | 15.5 | 114.7 | ||
Margin (% of revenue) | 3.5% | 11.8% |
1. Including share-based compensation expenses | 20 |
2. Does not include expenses related to Covid-19 |
3. AEBITDA is calculated by adjusting EBITDA for special items and share-based compensation expenses. Excluding holding fees.
Balance Sheet and Cash-Flow Statements
(€m)
31.12.2019 | ||
Assets | ||
Non - current Assets | 288.7 | |
Current Assets* | 281.5 | |
*of which cash | 193.6 | |
Total assets | 570.2 | |
Equity and liabilities | ||
Equity | 245.3 | |
Non - current liabilities | 111.1 | |
Current liabilities | 213.8 | |
Total equity and liabilities | 570.2 | |
Q3 2019 | ||
Cash flow from operating activities | 36.1 | |
Cash flow used in investing activities | (11.0) | |
*of which M&A | - | |
Cash flow from financing activities | (4.9) | |
30.09.2020
307.6
864.9
722.5
1,172.5
518.5
272.1
381.9
1,172.5
Q3 2020
134.8
(14.2)
-
0.9
21
Share Count
As of September 30st, 2020 | |||||
Types of share | Ordinary shares | ||||
Stock exchange | Frankfurt Stock Exchange | ||||
Market Segment | Regulated Market (Prime Standard) | ||||
Number of shares issued | 173,864,415 | ||||
Number of shares outstanding | 173,501,251 | ||||
Employee incentive plan | Options | RSU | Total | ||
Vested (in mn) | 3.70 | 0.18 | 3.88 | ||
Unvested (in mn) | 4.06 | 0.58 | 4.64 | ||
Outstanding (in mn) | 7.77 | 0.75 | 8.52 | ||
WAEP1 (in EUR) Vested | 8.98 | 0.00 | 8.57 | ||
WAEP1 (in EUR) Unvested | 14.05 | 0.00 | 12.31 | ||
WAEP1 (in EUR) | 11.53 | 0.00 | 10.51 | ||
22
1. Weighted average exercise price
Financial Calender
2 3 4 5 6
November | 9 | 10 | 11 | 12 | 13 | |||||
16 | 17 | 18 | 19 | 20 | ||||||
23 | 24 | 25 | 26 | 27 | ||||||
30 | 31 | 1 | 2 | 3 | ||||||
Dezember | ||||||||||
7 | 8 | 9 | 10 | 11 | ||||||
14 | 15 | 16 | 17 | 18 | ||||||
21 | 22 | 23 | 24 | 25 | ||||||
28 | 29 | 30 | 31 | 1 | ||||||
4 | 5 | 6 | 7 | 8 | ||||||
Januar | 11 | 12 | 13 | 14 | 15 | |||||
18 | 19 | 20 | 21 | 22 | ||||||
25 | 26 | 27 | 28 | 29 | ||||||
Februar | 1 | 2 | 3 | 4 | 5 | |||||
8 | 9 | 10 | 11 | 12 | ||||||
15 | 16 | 17 | 18 | 19 |
03.11.20 Q3 Earnings Call | 04.11.20 Credit Suisse Roadshow Canada |
03.11.20 Kepler Roadshow Frankfurt
18.11.20 Morgan Stanley Conference | 19.11.20 Morgan Stanley Conference |
03.12.20 Berenberg Conference
10.12.20 Capital Markets Day
22 | 23 | 24 | 25 | 26 | 23 |
24
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Disclaimer
HelloFresh SE published this content on 03 November 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 03 November 2020 10:14:03 UTC