Ladies and gentlemen, welcome to the HelloFresh SE Q1 2026 results. At this time, all participants have been placed on a listen-only mode. The floor will be open for questions following the presentation. Let me now turn the floor over to your host, Dominik Richter, CEO of HelloFresh.
Good morning, ladies and gentlemen. Thank you for joining our Q1 2026 earnings call. Before my colleague, Fabian, takes you through our detailed financials, I want to spend a few minutes addressing our current standing, the progress we've achieved. To be direct, we are in the midst of a deliberate transformation of the business. This process involves clear trade-offs which are visible in our reported results today, but constitute a conscious choice to allow the business to be set up for long-term success. Over the past year, we've fundamentally overhauled our customer acquisition strategy, marketing spend, and product proposition. We've made the conscious choice to walk away from unprofitable volume, tightened our marketing ROI thresholds, and redirected capital from acquisition into product quality while restructuring our fixed cost base. None of this was accidental.
It was a sequenced effort to fix the foundation, even if it comes with a near-term trade-off to reported growth, but will allow for better revenue quality in the long run. The central question is whether this logic is working. I believe the evidence is clear that it is, and we've seen success in those metrics that are most associated with the long-term health of the business. First, let's take a look at our Meal Kits product segment. One year ago, Meal Kit revenue was declining at roughly 14.5% in constant currency in Q1. In Q1 2026, that decline narrowed to 8.5%, marking our fifth consecutive quarter of sequential improvement. The trajectory is moving clearly in the right direction. On efficiency, we have delivered structural improvements. Fulfillment costs as a percentage of revenue improved by 0.8 percentage points year-over-year.
We reduced absolute marketing spend by EUR 62 million to about 21.8% of revenue. That's not a one-time squeeze, but a permanent shift in our operating cost discipline. Regarding the product, we've executed the most significant investment cycle in our history. Under the ReFresh, we have substantially broadened menu choice, doubling the recipes we offer in markets like the U.S. or the Nordics, while upgrading ingredient quality and expanding protein variety across all geographies. The sum of these investments leads to a materially better product value proposition, which will only compound from here as more and more initiatives come live. That's the backbone of higher customer Lifetime Value. Crucially, this means the quality of our revenue has improved. Our tenured customers are ordering more frequently, and they're ordering higher baskets.
Group level average order value rose EUR 4.2 in constant currency, with Meal Kits specifically up 4.5%. Revenue retention and customer lifetime values of our tenured cohorts have been improving and trend at the best levels ever seen in the business. These are not temporary effects, but rather the response of a healthy customer base to a fundamentally better product and a stronger value proposition. The sum total of these changes have to date most positively affected our tenured customers, which was clearly our primary focus area. It's not yet been enough to fully offset the impact of front-loaded product investments, inflation, and the volume-led operational deleveraging.
We expect the trend improvement for Meal Kits to continue going forward and also to see more proof of a return to eventual revenue growth by H2, when we will have the benefits of our product investments and the outstanding parts of the efficiency program materialize more forcefully in our P&L. I also want to address Ready-to-Eat and specifically Factor US directly. Again, our primary goal for 2026 is to return the RTE product segment to full year profitability on the basis of product excellence and strong operations. We are on a good trajectory to achieve this. The operational setbacks we faced in the U.S. last year, which impacted customer experience and retention, are now fully resolved. The underlying indicators have turned strongly. NPS is now trending at the highest level since 2023.
Our tenured active customers grew double digits in Q1. A direct consequence of better product excitement among them and validation of our strategy to add more variety into the menus. RTE adjusted EBITDA losses also narrowed by about EUR 80 million in Q1. That's a 40% improvement year-over-year. This represents a very encouraging trend line in our P&L and is the result of improving both unit economics and a more disciplined marketing investment approach. The remaining challenge now is rebuilding the active customer base, which reduced in the last nine months due to those earlier mentioned operational issues and our subsequent response to not invest aggressively behind a product and supply chain that needed fixing. While conversions are improving, switching the acquisition engine back on does not happen overnight. It rather requires multiple touchpoints with consumers.
New customer volume in Q1 was not yet enough to fully offset the gap in active customers accumulated over the past 12 months, which has come as a result of the aforementioned weaker retention and reduced new customer volume. However, we are now restarting the growth engine on top of operational confidence and strong ROI discipline. Outside the U.S., our RTE businesses in Australia and Canada continue to post healthy double-digit growth. Furthermore, our new production facility in Germany has opened and will soon be fully operational, providing the dedicated capacity needed to scale Factor also in Europe in the second half of the year. In addition, we are excited about our product and menu expansion roadmaps, which should help to drive positive outcomes with regards to retention and order frequency of our tenured RTE customer base.
We expect the combination of all of these improvements to flow through our P&L more visibly in the second half of the year. With that, let me come to the highlights of Q1. Revenue for the quarter was approximately EUR 1.7 billion, a 7.7% decline in constant currency, which was in line with our expectations. Meal Kit revenue trends improved for a fifth consecutive quarter in a row, while RTE revenue trends showed a stable trend versus what we saw in Q4. Adjusted EBITDA came in at about EUR 24 million. To put this in context, severe winter storms in the U.S. and Europe, including a once in 75 years event in the U.S., disrupted our logistics and impacted adjusted EBITDA by approximately EUR 25 million. This is a one-off event that does not change the underlying trajectory of the operating model.
Excluding this weather impact, our underlying adjusted EBITDA run rate was closer to EUR 49 million. This gives a much more accurate read of where the business structurally sits today. Fabian will bridge these numbers in more detail. Contribution margin for Q1 sat at 25.6%. We saw strong operational improvements on the fulfillment side, which were offset by our investments into better product value for consumers. That's a deliberate strategy, which will help us to divest from marketing and improve customer retention and order frequency in future quarters. Critically, we generated EUR 49 million in positive free cash flow, our fourth consecutive quarter of positive free cash flow despite the EUR 25 million impact from the adverse weather events.
Finally, we're reconfirming our full year 2026 guidance, constant currency revenue decline of 3%-6% and an adjusted EBITDA in the range of EUR 375 million-EUR 425 million. The delivery will be second half weighted. We front-loaded the ReFresh investments because we saw clear evidence that they were working. These costs hit the P&L now, while the revenue benefits compound as retention and order frequency improve. In H2, the investment drag will moderate and structural savings from our efficiency program will flow through more fully. There are also variables we do not fully control, such as consumer sentiment in North America and inflationary pressures. However, the leading indicators we track about the health of the business and our customer base, such as the customer order patterns I referenced and cohort retention all point in the right direction.
15 years in, our mission to change the way people eat is more relevant than ever. By focusing on product quality, customer loyalty, and cost discipline, we're building a business that creates lasting value. We're not only optimizing for the next quarter, we're building a company that earns its place on the dinner table every single week. Thank you. I will hand over to Fabian now.
Thank you, Dominik, and good morning, everyone. Let me take you through the financial details of the quarter before we open for questions. You would have noticed that we have only a handful of slides this quarter, but I will make sure that I bring the necessary level of detail to understand how the trends that Dominik just described are showing up in our financials. Starting with revenue. Group net revenue was EUR 1.68 billion in Q1, a 7.7% decrease in constant currency. If you recall, in the previous quarter, Q4 2025, that figure was 9% negative in constant currency. Definitely, this represents another step in the right direction as we anticipated. As of next quarter, we will start reporting a full P&L split by product category.
Allow me to already discuss with you the drivers for each of our key product categories now. Meal Kits delivered close to EUR 1.2 billion in revenue, 8.5% lower than last year in constant currency. As Dominik noted, this is the fifth consecutive quarter of sequential improvement in constant currency rates. The make of this number is defined by the trajectory of orders and of AOV. Order growth in Meal Kits, while still negative, also improved sequentially for the fifth consecutive quarter. What we are seeing today is our tenured customer base ordering more on a per customer basis. On the other side, the cumulative impact of the marketing reduction over the past 18 months means that orders from recent customer are still down comparatively and more than offsetting the resilience in our tenure base.
Average order value for Meal Kit was up 4.5% in constant currency, supported by fewer discount and some marginal price increase and some positive mix. Ready-to-Eat delivered EUR 466 million, which is lower than last year in constant currency by 6.9%. This is made of average order value up by 1.4% in constant currency and lower order by about 8%. Let's pause for a second to understand the underlying drivers of order decline, which I believe is not necessarily fully understood by the market. First, and most importantly, the cumulative impact of the preceding nine months of operational issues precluded us from acquiring as many new customer as we would have liked while we were fixing those issues.
Second, some underperformance in conversion in Q1 this year as we start to ramp up quality conversions and we optimize our channel, our product, and our marketing messages. Nevertheless, the tenured customer for Ready-to-Eat in Q1 displayed double-digit revenue growth, which is a great trajectory. Basically, because the category is in early stage, the conversion still represent an outside part of the revenue dynamics. The takeaway on revenue is that the direction of travel on Meal Kits is improving as anticipated. On Ready-to-Eat, the slope of improvement is not yet visible in the revenue because the customer base entering this year was smaller than a year ago. The improvement will materialize progressively through the second half of the year as we rebuild the customer base on top of improving profitability. For contribution margin now.
The contribution margin, excluding impairment and share-based compensation, was 25.6%, down 1.4 percentage point year on year. I want to be specific about what drove that decline because the composition matters to understand how our strategy is being implemented. The first factor is the severe winter storms. EUR 25 million of non-recurring disruptions that hit primarily in North America. I mean, I don't need to remind anyone, certainly not our U.S. listeners, that the winter storm found in the U.S. was widely reported to be the heaviest winter storm in 75 years. This event affected ingredient delivery, wastage, increased credit and refund cost, and disrupted last mile delivery operation. This is a weather event that has no bearing on the underlying structural margin trajectory. The second factor is deliberate. We have accelerated product investment ahead of the revenue curve.
Investment in higher quality protein, expanded meal choice significantly, or onboarding of new ingredients have been rolled out across countries. Just to give an example, our customer in the Nordics can now have 100 different recipes in their weekly menu, roughly doubling the size of the menu in six months. These are recipes that now, for the most part, have a minimum of 200 grams of vegetables or fruits and better quality and better variety in their protein source. These investments increase gross costs in the near term. The returns come through higher retention, better frequency of orders, and larger basket, i.e., better customer lifetime in subsequent period, especially as some of this investment compound. Turn HelloFresh meals into being perceived as a higher value options.
In this particular case of Nordics, I explained before, we registered a very encouraging positive total revenue growth in Q1 already. We still expect the impact of the product investment cycle in 2026 to take up approximately 150 basis points of gross margin, net of the impact of price increases. On the positive side, our efficiency program continued to deliver. Fulfillment cost declined 0.8 percentage points as a share of revenue when you exclude the impact of impairment and share-based compensation. This is a direct output of the network optimizations and productivity improvements we have been embedded into the operating model. These savings are structural in nature.
Marketing spend came in at 21.8% of revenue in Q1, down 30 basis points year on year, with absolute spend reduced by EUR 62 million, but only an 8% reduction in relative term in constant currency. The marketing efficiency model we established in mid-2024 with tighter ROI thresholds, the eliminations of unprofitable acquisition channels, and a more disciplined and product-led approach to acquiring high quality customers is now the baseline, and it is embedded in how we operate. We do not expect to revert to prior spending levels, but we also do not expect to reduce marketing in 2026 in the same way we did in 2025. This dynamic is particularly clear when you look at the Meal Kit product category, where absolute spend was down only slightly year on year and as roughly flat as a percentage of revenue.
What is critical now from a marketing perspective is that the value of the product investment lend well. This is not an overnight type of occurrence as word of mouth, public reviews, top of funnel, and performance marketing all need to work in unison to crystallize those advantages and become top of mind for new consumers. On Ready-to-Eat, spend was down, and it was down substantially year-on-year in both absolute and relative terms, and this reflects 2 things. First, we are lapping on elevated Q1 2025 in terms of investment when we were running significant brand campaigns for Factor. Second, we have been deliberately conservative on acquisition spend while rebuilding the operational foundation.
Now that the operational issues are behind and we were able to also invest in the product propositions, we will lean back into acquisitions progressively, but we will do so from a position of disciplined ROI, not volume at any cost. Remember, our primary goal for 2026 is to drive Ready-to-Eat back to sustainable profitability and establish the right foundations for long-term profitable growth. Group EBITDA was EUR 23.6 million, absorbing, as I mentioned, EUR 25 million of weather-related disruption. Stripped of that, non-recurring item, the underlying group adjusted EBITDA run rate was EUR 49 million. By product category, Meal Kit adjusted EBITDA was EUR 105 million, representing a margin of 9%. This reflects the weather impact, which fell disproportionately on North America, and the front-loaded product investment cost.
The weather-adjusted Meal Kit adjusted EBITDA margin would be closer to 10.3%, still below last year 11.4%, primarily due to the deliberate product investment pull forward and the impact of volume-led operational deleverage. That, as Dominik said, that is a trade we have made. The Q1 is typically the quarter with the lowest margin, so we are confident we can finish the year with double-digit adjusted EBITDA margin for this product category. On Ready-to-Eat, the adjusted EBITDA loss narrowed to EUR 27.6 million, sorry, from EUR 45.9 million in Q1 2025. I mean, this is a EUR 18 million improvement or a 40% reduction of the loss. This is, in my view, the most compelling trend in the P&L right now.
The improvement has come from marketing efficiency, operational cost recovery, and the resilient economics on the active customer base. Obviously, we want to maintain this momentum in the subsequent quarters. All-in costs of EUR 48 million are up modestly year on year, reflecting continued investment in IT and tech inflations, while personal expenses has gone down. Free cash flow for Q1 was EUR 49 million. It reduced by EUR 18.8 million year on year, which is entirely explained by two items: lower adjusted EBITDA, primarily weather driven, and higher CapEx. Q1 CapEx was EUR 44 million, up from EUR 34 million a year ago. The majority of that increase reflects the Factor Europe facility investment in Germany. This is a gross CapEx with a clearly identified strategic return.
Going forward, we expect CapEx to normalize within our full-year guidance range as the year progresses. The free cash flow this quarter was also supported by the positive inflow of operating working capital, which was approximately EUR 30 million better than last year, of which one-third is structural and two-thirds is phasing and therefore will be unwinds for you. On the outlook, I want to reconfirm what we had previously communicated for the group for 2026, which is constant currency revenue growth of -3% to -6%, adjusted EBITDA in constant currency of EUR 375 million to EUR 425 million. I also acknowledge that if you take into consideration the result we are presenting today and the directional guidance I will communicate for Q2, we are looking at a second half weighted delivery, and I will explain that.
Q2 still has 2 months to go, obviously, but for now, we expect the top line for the group to remain relatively stable in terms of rate of decline, driven by some underperformance in Q1 conversion which impact Q2. The impact of the product investment in top line is also expected to be more tangible in the second half of the year. On the bottom line, we expect Q2 to be between EUR 30 million-EUR 40 million below Q2 2025. This is driven by primarily the fact that investment in product has been accelerated between H2 2025 and H1 2026. With the data we are seeing in terms of how product investment are resonating with existing customers and the learning from the peak period, we are expecting to hit the guidance for 2026. With that, I will open the line for questions. Thank you.
Thank you very much. Ladies and gentlemen, if you would like to ask a question, please press star 9 and the pound key on your telephone keypad. If you would like to cancel your question, press star 3 and pound key. You can also use the dial-in function in the webcast if you would like to ask a question by phone and raise your hand to ask a question. We have a first question coming in, coming from Joseph Barnet-Lamb from UBS. The stage is yours.
Hi there. Are you guys able to hear me?
Yes, you are.
Yes.
Excellent. Thank you very much. A couple of questions from me, please. You referenced pricing a few times in the release. I'm interested if you could give us some more color on what's driving the uptick in pricing. Is it just reduced discounting, pricing up as a response to inflation or some form of pivot in underlying approach to pricing? Then maybe a second question. You sort of referenced no improvement in underlying trends year-on-year in Q2. I'm interested as to why that's the case. I mean, you referenced that, you know, the benefits of investment will kick in more in H2 than in H1. Regardless of investment, if you didn't have investment, comps are getting easier.
Would you not expect the underlying trends to be improving regardless of the timing and benefits of your investment program? I'm just interested as to why things are not getting better in Q2 versus Q1. Thank you.
One. Dominik maybe can answer on pricing, otherwise I will. On Q2. I understand your question was more what is the fabric of our Q2 year-on-year. What I would say is, most of what I've been describing for Q2 is something that we have been already anticipated, where we gave the guidance for the full year. It's not totally a surprise. What you see year-on-year is, I would say, three key components. You have the program, which are exactly contract as we expected, which we see impact on the P&L.
On the other side, you see investment in product to increase the value propositions to our customer, which is hitting the P&L as we have been scaling that up from H2 to H1, which of course is giving a negative comparison to last year. We still have the operational leverage, especially on Meal Kit. I would say last year, we were having a very meaningful reduction of marketing to offset that, which we don't want to do this year. It is a choice we have been making for supporting long-term growth. As a reminder, total company last year, we have been reducing marketing spend by more than EUR 200 million with an increase in Ready to Eat.
You can imagine the magnitude of the reductions we have had in Meal Kit, which is not happening this year, which is why you have an uptick of a lower EBITDA, but on a like-for-like basis, it is, uh, roughly where we expect it to be. That from Q3 already, we are expecting a year-on-year improvement on our adjusted EBITDA trajectory. What's important to notice as well, despite the numbers that we have just been talking about, we are expecting in Q2 on Ready-to-Eat most likely to be already on a positive trajectory as we continue to improve. On Meal Kit, on a very solid double-digit adjusted EBITDA margin.
If I could just follow up on that very quickly, please.
I think your other question was on pricing.
Oh, sorry, go on, go on.
On pricing, I wouldn't say there's a massive shift in strategy. There's 2 things that I would like to call out. Number 1, yes, we have reduced some of the incentives, so that is then coming through in higher net AOVs. Secondly, we've taken sort of like some pricing action, but mostly in line with the inflation, sometimes a little bit over inflation, but also giving more value to customers. You see the net impact in our COGS line, but the gross impact of investments has actually been higher than what you see in the COGS line because we've also done some pricing changes, but not across all geographies, et cetera. That's not the hugest impact of what you see.
The incentives definitely play a part here.
Excellent. Thank you for those answers. If I could have a quick follow-up, Fabian, on your point about Q2. You were breaking up a little bit, but it sounded to me like you were basically saying that it's due to sort of like a progressive reduction in marketing leading to a compounding effect on your cohorts, effectively. Firstly, is that what you were saying? Secondarily, given the product investment, I would imagine that your lifetime value of your customers would be going up. As such, I'm not entirely sure why marketing continues to reduce. Is it because you're seeing CACs trending up, and as such, you're progressively reducing marketing further to compensate for that to get your CAC versus LTV lining up? Is there another driver behind that that I'm not quite understanding?
Thank you.
I was maybe Oh, hey, Joe. Sorry. Maybe I apologize if I was not clear or breaking up on my earlier comment. I was referring to still the dynamic of operational leverage we still have on Meal Kit because we are still on negative negative order year-on-year. Last year, some of this decline were offset by a very meaningful reduction of marketing spend. I was reminding how much we reduced overall marketing spend last year by about EUR 200 million, and even more than that, if we take Meal Kit alone, which we do not have this year because we want to ensure we can support long-term, long-term, conversion momentum.
On product investment, it is clear that today what we see is already a positive trajectory on tenure customer which are ordering more than before, which is a very good news. What we don't see yet is the impact on ability to drive new conversions because we know this will take time. That's why we believe that we probably need still few quarters to be able to show that in the P&L, and it's what we are anticipated from Q3 onward.
Thanks very much.
Thank you. The next question comes from Nizla Naizer from Deutsche Bank. The stage is yours.
Great. I have two questions as well, please. First, just to clarify, Dominik, did you mention in your comments that you would expect a return to overall revenue growth for Meal Kits in H2, based on the trends y'all are seeing? Or just, you know, would that still be more of a 2027 type of outlook? Any color on that return to growth trajectory based on the trends y'all are seeing, whether it was for Meal Kits of the group, in H2 would be great. Second, one of the questions we are getting is on the health of the consumer, particularly in the U.S. with, you know, the worries around energy prices and cost of living going up.
Just wanted to understand how y'all are seeing an impact on that, whether you're offsetting it by, you know, other means, and if all of this is now baked into the outlook that you reconfirmed today. Some color on that would be great. Thank you.
Sure, Nizla. Let me be clear. What I said is that in H2, you should see evidence more clearly for an eventual return to growth. Also in line with Fabian's answer just now. Given sort of like the massive year-over-year reduction in marketing in Q1, some of that carries over into Q2. That's why you don't see sort of like the revenue growth inflecting in Q2, but you should see more evidence for an eventual return to growth in the second half of the year. That's what I was referencing.
Okay.
On your question with regards to consumer health in the U.S. Yeah. With regards to consumer health in the U.S., I would say it's definitely not the sort of like best environment that we've been in. There's obviously definitely also on the part of consumers, like a lot of fear of inflation coming back and other things. That's also why we wanna be very strict in our ROI thresholds that we target with new customers and not overshoot, especially when, you know, a lot of the impact of our strategy is basically for consumers to order more over time.
We wanna make sure that as we switch back on the acquisition engine, that we are cautious and do not invest aggressively into a consumer sentiment that is very much weakening when a lot of the return should come from better lifetime retention, better frequency, higher AOV, et cetera. I would say we don't see it necessarily right now, but we definitely see some of the indicators. We see a lot of the research, et cetera, coming, and we wanna be cautious in that environment.
Great. Thank you.
Very much. The next question comes from Andrew Ross from Barclays. Mr. Ross, the stage is yours.
Morning, guys. Morning, guys. A couple from me, please. First one is to come back on the Q2 guidance, where, to be clear, I think you're guiding to revenue declining in constant FX, similar to what it did in Q1. To be clear, are you saying that Meal Kits should also decline at a similar cadence in Q2 to what they did in Q1? If that is the case, can you just remind us again, why has there been no sequential improvement in Meal Kits in Q2? I hear you in terms of having had less marketing last year, maybe that's flowing through in cohorts. Historically, you've always pointed to each quarter that year-on-year trajectory for Meal Kits gets a couple of points better, and you'd always kind of pointed to that continuing sequentially through this year.
Why is Meal Kits not improving in Q2 is my question. The follow-up to that is, you said on the Q2 guidance that most of the softer outlook was anticipated when you reported the Q4. What was not anticipated? Can you give us some sense as to what's happening in April? Thank you.
Hey, Andrew Ross. On the outlook, you had two questions. One is more around top line, the other more around the bottom line. I think on the bottom line, I've answered already the questions, which is we are expecting, as I've said, a double-digit adjusted EBITDA for Meal Kit, but lower than last year because of the phasing of product investment and the continued de-operational leverage, where we don't have a similar level of marketing reductions than last year. I think it's pretty simple, yeah. On the top line, indeed, we are expecting a similar rate than what we have seen in Q1 with Meal Kit.
It's probably similar across the category with meal kit around the same level, maybe slightly better because if you strip out the fact that we're gonna stop delivering to Italy and Spain in Q2, they were still in our Q1 number, but they will not be in Q2. If you factor that, we might have another slight improvement, which, of course, we would like because then we'll be able to say six consecutive quarters of improvement. You know, it's not always completely linear by quarter, but it's what we are expecting for Q2. On Ready-to-Eat, we know it's gonna take a bit more time, as Dominik described, and we think Q3, Q4 will be more defining trajectory for our Ready-to-Eat segment.
Okay, that's helpful. Then on the second question, in terms of what you had not anticipated in terms of the Q2 outlook when you reported the Q4 results.
I think what I was answering to this last question before. Obviously, since we've reported that, everything going on in the Middle East, sort of like inflation, customer sentiment, those are things that I think at that time were not sort of like as clear. I think there's still obviously a lot of wide distribution of outcomes over the course of the year. Those are definitely things that let us also take a somewhat more conservative stance and making sure that we only invest behind strict ROI discipline as we restart the acquisition engine.
You are seeing some softening in trends on the back of the Middle East conflict, or it's more in anticipation, but you could see some softening?
That's not something that we see right now, but in anticipation. In anticipation, obviously, if sort of like inflationary pressures kick in or not. I think if you have sort of like more uncertainty, then obviously it's a prudent approach to take a more conservative stance, even though right now in the business, I don't really see it. I do see it in leading indicators from consumer research, et cetera. I don't see it in the data right now, but against that environment, we feel it's prudent to have a strict and disciplined ROI approach.
Okay, cool. One more follow-up. I really do apologize. Just on this Q2 outlook for Meal Kits not being better than Q1, I hear you on the impact of shutting down Italy and Spain. Didn't Q1 also have a negative impact from weather? I appreciate those are not necessarily the same magnitude, but I still would have expected the Q2 would improve. I mean, this is obviously a very important number for investors who are looking for stabilization in trends in the Meal Kit business as a fact, but it's not continuing to improve, I guess, is a big focus. I just wanna make sure we're 100% clear on this.
Yeah. Let's be clear, on Meal Kit, we are expecting further improvement, as year pass. Of course, the improvement is not always linear, and I don't want to come to too much detail, but, you know, sometimes you have a big quarter where you close there, where you have not fully on the same month as monster. There we are on track with what we were expecting. That's for me, the most important message.
Okay. Thank you.
Thank you very much. That concludes our Q&A session, and I will hand back to Dominik Richter for some closing words.
Much for attending our call. I think, to sum up, we feel that the primary objectives that we're focused on, making sure that our tenured customers are happy, that they're ordering more, that we can basically price better with them because they get a value in the product. I think all of those metrics are pointing in the right direction. We obviously still need to work hard now to get the acquisition engine back on. We will do that with a strict ROI focus, especially given the environments that are in and some of the uncertainty over the course of the year when it comes to macroeconomic environment, consumer sentiment, et cetera.
We do feel that those metrics that we're focused on that are the defining metrics for a long-term healthy business are very much trending in the right direction. We look forward to updating you in August about the progress that we will achieve in Q2. Thanks a lot.