Annual Report

Highlights from 2024 Annual Report:

Order Performance:
Total orders decreased by 7.7% YoY in Q4 (26.29 million) and 3.9% in FY2024 (114.63 million).
Meals delivered dropped by 8.0% in Q4 and 4.3% YoY.
Financial Metrics:
Q4 revenue declined by 2.7% to €1,808.5 million; FY revenue grew by 0.9% to €7,661.3 million.
Average order value increased by 5.2% in Q4 and 4.9% YoY.
Adjusted EBITDA (AEBITDA) for 2024 was €399.4 million, down 10.8% from 2023.
Regional Insights:
North America: Revenue increase of 0.9% YoY, AEBITDA down due to rising ready-to-eat meal costs.
International: Revenue grew by 1.2%, with similar operational pressures.
Market Strategy:
Shifted marketing to prioritize profitable customers over volume; reduced emphasis on meal kits in favor of expanding ready-to-eat offerings.
Projected continued focus on operational efficiencies and improving unit economics through cost management and menu diversification.
Future Outlook:
Aiming for enhanced customer satisfaction and long-term profitability.
Growth opportunities identified in expanding meal options and improving quality to capture a broader customer base.
Financial Risk Overview: HelloFresh faces various financial risks, including market, liquidity, foreign currency, interest rate, and credit risks, but maintains a minimal credit risk due to its prepayment model.
Liquidity Management: The company has a robust cash position and access to a largely unutilized revolving credit facility, enabling it to withstand economic downturns.
Market Risks: HelloFresh’s foreign currency exposure is managed through strict limits on non-Euro holdings and a strategy that aligns currency purchases with cash needs. Limited exposure to interest rate volatility is noted despite rising global rates.
Covenant Risk: Compliance with financial covenants linked to its debt facilities is strong, with low risk of breach, backed by comprehensive monitoring and stress testing.
Capital Allocation: HelloFresh emphasizes data-driven investment strategies to mitigate risks related to overinvestment in underperforming areas, aligning with long-term goals.
Growth Opportunities: The company aims to enhance long-term ROI by nurturing customer relationships, expanding its ready-to-eat meals business, and exploring new market opportunities through adjacent verticals.
Economic Outlook: Global growth is predicted at 3.3% for 2025, with regional forecasts showing mixed expectations. HelloFresh anticipates a decrease in revenue for the year, yet aims for significant increases in adjusted earnings before interest and taxes (AEBIT) due to efficiency programs.
Segment Performance: North America remains a key revenue driver. However, a decline in meal kit sales is noted, contrasting with strong growth in the ready-to-eat segment, anticipated to expand further in North America and internationally.
Revenue Trends: Total revenue for HelloFresh increased to MEUR 7,661.3 in 2024, up from MEUR 7,596.6 in 2023, driven by direct-to-consumer sales growth to MEUR 5,008.8.
Revenue Recognition: The Group’s revenue from gift card breakage was MEUR 3.9 in 2024, a decrease from MEUR 11.0 in the prior year.
Balance Sheet Highlights: As of 31 December 2024, trade receivables rose to MEUR 20.7, while contract liabilities decreased to MEUR 64.4, indicating improved customer order fulfillment.
Goodwill Allocation: Goodwill increased from MEUR 276.0 to MEUR 285.1, primarily due to foreign currency effects impacting the operations in the USA and Australia.
Property & Equipment: Acquisitions totaled MEUR 109.4 in 2024, with significant impairment charges of MEUR 180.9 due to facility reorganizations in North America.
Cash Position: Cash and cash equivalents increased to MEUR 486.7, coupled with strong liquidity management, evidenced by a MEUR 400.0 revolving credit facility.
Employee Growth: The average number of employees rose significantly to 21,783 from 19,012 in 2023, reflecting operational expansion.
Capital Management: Total equity decreased to MEUR 888.4 mainly due to share buybacks of MEUR 83.1 and net losses impacting retained earnings.

https://findl.top?q=EsAAYusax4sLGNO6cs9vsXDuXstgXpLVsxYjTcCD0uc%2FP3lZQcQdymVoC%2Bda0kOd5hsIGd2wG41djGZErVj7%2BX%2BVqXsMqH76igSwpoh9reHwKtGaH95K4NaNVOwDuZZ1rHf4RFcd5w2UOMJmpa35cJRObVALjliGz%2FKeCujqxjf1C8UWRM61p1L8qCE%3D&source=eqs&length=short&filename=DE000A161408-JA-2024-EQ-E-00.pdf