Hellofresh Se Ord

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 re-emphasizing 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 TAM to go after for our two strong consumer brands. Executing on our efficiency program is critical for both short-term and long-term success. It's our deliberate strategy to emphasize profits and cash flow generation over volume growth this year. We had seen the painful decline of our EBITDA, but also of our free cash flow for three years in a row. And it's important to turn this around in 2025 by right-sizing our fixed costs, improving our unit economics, and returning to a best-in-class financial profile. This will free up the funds and investments required to self-finance the massive improvements we plan for our customer offerings and to diverse into additional product groups more forcefully. The success of our efficiency program is crucial to eventually return to growth at the right unit economics and with superior margins and a strong cash flow profile. It will provide us with the right foundation to build toward our long-term vision to create a leading global digital-first CPG group with diversified revenue streams and strong underlying profit pools.

Let's turn to the highlights for Q1 now.

Q1 has been the extension of us delivering strongly on our efficiency program that we also did in Q3 and Q4 last year to fundamentally change our cost profile for the better. We've made great progress on many dimensions. Net revenue amounted to 1.9 billion euro in Q1, a decline of 8.3% year over year, primarily driven by a decline of market marketing expenses and materially lower new customer additions in line with our strategy to optimize for higher ROI thresholds and the focus on profit over revenue growth. The flip side of this has been a strong increase in adjusted EBITDA and adjusted EBIT generation. EBITDA is up 245% to 58.1 million euro, while EBIT increased by 46 million year over year in Q1 alone. Free cash flow increased even more forcefully by about 100 million euro year over year from minus 6 million in Q1 2024 to over 94 million euro in Q1 2025. A major contributor to the improvement in all bottom line profitability metrics has been the expansion of our contribution margin by 1.3 points to 27%. In addition, we managed to decrease marketing spend by about one point year over year. This has been achieved as a result of higher marketing ROI thresholds, much reduced marketing investments in the Meerkats product group, and in spite of our biggest brand campaign to date for RTE and Q1. Based on the better than expected Q1 results, we feel on track with regard to our previously issued full year guidance, despite the heightened macro uncertainty. This includes the potential impact of tariffs major FX headwinds in our euro reporting currency, and an unclear consumer confidence outlook, particularly around the US consumer, which are all hard to fully control for. We therefore think it's prudent to stick with our previously communicated full year guidance for now. Finally, we have seen encouraging results from product investments in Q1 and have a full pipeline to roll out successful pilots in many of our mature markets mostly in the second half of the year. In line with our strategy, we saw orders for the group decline by about 12% year over year in Q1, mostly driven by the meaningful reduction in U.S. meal kit marketing spend. As a result, Q1 North America meal kit orders declined by about 18%, International meal kit orders, on the other hand, saw also a reduction, which also saw a reduction of meal kit marketing spend, but not to the same degree. We saw orders consequently decline by about 3.6%. Important to note that our existing customer base show overall a stable to improving order behavior, i.e. the decline in orders is fully due to fewer new customer additions. Group AOV once again increased in Q1 year over year to over 68 euros per order, a 3.8% increase in constant currency. North America increased by 5.9%, international by 4.5%. Both regional segments benefited from lower monetary incentives, pushing up AOVs. In addition, in North America specifically, we saw a mixed shift toward a higher share of RTE orders, which come at a somewhat higher AOV compared to meal kit orders. Put together, the deliberate strategy to emphasize profits over growth has led to a substantial temporary order decline, fully attributable to lower new customer additions. This has been somewhat offset by higher AOVs, most notably by lowering monetary incentives. All in all, this has led to a net revenue decline of 8.3% in constant currency. Q1 net revenue reached 1.9 billion euro in line with previously issued revenue guidance. From a regional perspective, North America net revenue declined about 13% in Q1 whereas international net revenue increased by about 1% year over year. From a product group perspective, meal kits declined by about 14% year over year, whereas RTE net revenue grew about 8%, both in line with previously issued revenue guidance. I'll hand over to Christian now to walk us through our cost line items and the outlook for the remainder of 2025.