EQS-Adhoc: HelloFresh SE expects to have achieved highest ever quarterly adjusted EBITDA (AEBITDA) in Q2 2023, materially above market expectations

Public disclosure of inside information according to Article 17 para. 1 of the Regulation (EU) No 596/2014 on market abuse (market abuse regulation - MAR)

HelloFresh SE expects to have achieved highest ever quarterly adjusted EBITDA (AEBITDA) in Q2 2023, materially above market expectations

International Securities Identification Number (ISIN): DE000A161408
German Securities Code (WKN): A16140
Ticker Symbol: HFG
LEI: 391200ZAF4V6XD2M9G57
Listed: Regulated Market in Frankfurt am Main (Prime Standard)

Berlin, 19 July 2023 Based on preliminary indications, HelloFresh SE (Company) has achieved its highest ever quarterly consolidated AEBITDA in the second quarter of 2023. Its consolidated AEBITDA for the second quarter of 2023 is expected to amount to between approx. EUR 185 million and approx. EUR 195 million (Q2 2022: EUR 146 million), exceeding the latest market expectations, which the Company determined to amount to approx. EUR 145 million (arithmetic average of published broker estimates as of 19 July 2023).

Also based on preliminary indications, consolidated revenue of the Company for the second quarter of 2023 is expected to grow year-on-year on a constant currency basis by approx. 1% and is expected to amount on a Euro reported basis to approx. EUR 1,918 million (Q2 2022: EUR 1,957 million, based on weaker Euro exchange rates in 2022). The Company determined the latest market expectations regarding consolidated revenue of the Company on a Euro reported basis to amount to approx. EUR 1,944 million (arithmetic average of published broker estimates as of 19 July 2023).

The strong AEBITDA outperformance in the second quarter of 2023 has been driven by faster than expected Contribution Margin expansion and by the timing of the Companys growth and advertising investments:

• the HelloFresh Group continues to execute well on its Contribution Margin expansion, which is expected to exceed 28% in the second quarter of 2023, compared to 26% in the second quarter of 2022;
• against the backdrop of an overall reasonably soft consumer confidence environment in some geographies and ongoing capacity constraints at Factor75, the Company decided to shift some of its growth and advertising investments into the second half of the fiscal year 2023, reflecting the Companys capital allocation discipline.

The aforementioned changes have had limited impact on the consolidated revenue growth in the second quarter of 2023: While Active Customers in the second quarter 2023 were down by a high single digit percentage, Average Order Value equally increased by a high single digit percentage on a constant currency basis and Orders per Customer increased by a low single digit percentage, each year-on-year.

The strong AEBITDA outperformance in the second quarter of 2023 was consequently partly driven by lower marketing spend and higher Average Order Values. The Company expects to reaccelerate its growth marketing spend in the third and fourth quarter of 2023 and continues to target ending the fiscal year with a positive year-on-year growth of Active Customers.

Based on its solid performance in the first half of the fiscal year 2023, the Company narrows its revenue growth outlook for the fiscal year 2023 for the HelloFresh Group on a constant currency basis from previously between 2% and 10% to now between 2% and 8%. Based on the strong Contribution Margin expansion above expectations, the Company also narrows its outlook regarding the AEBITDA for the HelloFresh Group for the fiscal year 2023 from previously between EUR 460 million and EUR 540 million to now between EUR 470 million and EUR 540 million (arithmetic average of published broker estimates regarding the AEBITDA of the HelloFresh Group as of 19 July 2023: approx. EUR 489 million).

The Company will publish its financial statements for the second quarter and the first six months of 2023 as scheduled on 10 August 2023.

The final numbers for the second quarter of 2023 may deviate from the numbers and ranges presented in this release. All numbers presented in this release are unaudited and based on preliminary indications.

Regarding the definitions of the alternative performance measures AEBITDA, Active Customers, Contribution Margin, Average Order Value and Orders per Customer the Company refers to the corresponding definitions in its Annual Report 2022, which has been published on the Companys website.

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This document contains forward-looking statements relating to the business, financial performance and results of the Company, the HelloFresh Group or the industry in which the HelloFresh Group operates. These statements may be identified by words such as "will", "expect", "belief", "estimate", "plan", "target" or "forecast" and similar expressions, or by their context. Forward-looking statements include statements regarding: strategies, outlook and growth prospects; future plans and potential for future growth; growth of products and services in new markets; industry trends; and the impact of regulatory initiatives. These statements are made on the basis of current knowledge and assumptions and involve risks and uncertainties. Various factors could cause actual future results, developments or events to differ materially from those described in these statements, and neither the Company nor any other person accepts any responsibility for the accuracy of the opinions expressed in this document or the underlying assumptions. Except as required by mandatory law, no obligation is assumed to update any forward-looking statements.