Hi, good morning. Welcome all to our Q2 2023 earnings presentation. Today, we'd like to confirm the numbers that we've already pre-released a couple of weeks ago, use the opportunity to shed some additional light on how Q2 turned out for us, also how we see ourselves performing against our long-term ambitions. Our mission is to change the way people eat forever, home cooking has obviously been around for hundreds of years, will most likely continue to be the most popular way to eat dinner for the next hundred years. More than 50% of dinners in our target markets are cooked and consumed at home, a figure that's also incredibly sticky throughout economic cycles and all ways of life. In the almost 12 years since HelloFresh was started, we grew HelloFresh to a meals run rate of over 1 billion meals per year, which is, on the one hand, an incredible achievement. On the other hand, this also just constitutes a little over 1% of all dinners that our prime target group consumes. We've more recently disrupted another food category successfully and grown into the largest direct-to-consumer, ready-to-eat player in the U.S., with plans to also bring that to Europe and other places around the world. Changing the way people eat forever, not only for people cooking at home, but also for those being a little bit shorter on time. These two scaled verticals and the number of newer verticals, in which are in their early stages, add as a meaningful step closer to our vision to grow into the world's leading food solutions group. While we have achieved some amazing wins, and despite being the biggest disruptors in these two huge consumer categories of home cooking and ready-to-eat in the last decade, we still feel very early in our trajectory and are excited about the days ahead of us. While it's always nicer to have everything go smoothly up into the right in an extremely consistent fashion, the reality is that it's usually a little bit more messy, and we continue to be faced with many things that we cannot control. Whether that's a pandemic, which in hindsight was a big accelerator to our market penetration and inflationary shock or warmongering, just to name a few. Others, such as capacity constraints, are to a certain degree in our own control. We cannot always time them without any impact to our growth journey or actually in line with a financial quarter, making the numbers sometimes seem a little bit more volatile than they are if you assume where they should be headed in the mid and long term. In the long term, these are all completely negligible things, if you think about the size of the opportunity that we go after. In the short term, they often cause us a lot of hard work and long nights. What we have done in all these phases is to really focus on the long term and work backwards to actually understand what the best strategy is to deal with the shorter term opportunities and challenges of today. For the first half of 2023, for us, this really meant shifting our focus to exercising strong cost discipline across the board and improving our underlying unit economics significantly, but also making our customer experience better. This puts us now in a position to take the next step in our growth journey with a more profitable model and a lot more moats against current and potential future competitors. After the massive scale-up over the last three years, when we more than tripled the business, these past six months have certainly felt a little bit more like a transition period, but it has been healthy and made us the strongest version of HelloFresh that we've ever been. In terms of talent, technology, but also our unit economics, I think will pave the way for strong, profitable growth and predictable, sustainable, free cash flow generation. In the end, it's quite simple. As a company, we strive to maximize the long-term free cash flow per share for our shareholders by building the customer base, technology, talent, and brands to become a category-defining company in our own right. With the many moats and the strong market share gains that we have achieved, we are on a clear path to build a lasting winner in one of the largest consumer categories, and also on track for very material free cash flow generation. With these opening remarks in mind, I'd like to walk you through some of the highlights, specifically of Q2, bearing in mind the overall H1 development. First of all, we've grown constant currency by about 1% year-over-year, as a decrease in active customers is more than offset by an increase in AOV of 8% and continued strong average order rates, close to record levels of 4.1 of orders per customer per quarter. We've seen very strong operational efficiencies on both procurement and fulfillment expenses, which drove a very substantial contribution margin uplift by about three points to 28.4% contribution margin. That is very reminiscent of some of the contribution margin that we've actually seen pre-COVID or in the early days of COVID. We've had a very disciplined spend approach against a relatively soft consumer environment, which translates into broadly flat relative marketing expenses, which also gives us some additional discretionary growth budget for the second half of the year. Most notably, we achieved our highest ever quarterly adjusted EBITDA of $192 million. That's a margin of about 10%. Importantly, we also generated very significant free cash flow again. Our free cash flow from operation is among the highest it has ever been in Q2. Also Q2 and Q1 combined, made us to achieve not only record operational free cash flow, but also return to generating free cash flow after the investments that we've taken in fulfillment centers and the build-out of our infrastructure. We've narrowed our top-line guidance to 2%-8% of constant currency growth. We've upped the range of adjusted EBITDA, EBITDA. We expect to land in to $470 million-$540 million, taking into account the additional discretionary growth budget that we've taken aside for H2. Why do we think or why are we positive for the development in H2? Number one, because we've worked hard on actually improving our unit economics and can go for very profitable growth in the second half of the year. Our Factor production capacity will be debottlenecked. The comparative period benchmarks become easier, and a number of product enhancements, such as the increase from 35 meals to 45 meals on the menu in the U.S. market, will start to hit. This, in combination with our better contribution margin, will guide us the way to continued profitable growth and then also free cash flow generation. In addition to improving our unit economics in the short run, we also continued to invest in new business verticals, such as pet food for our Factor Europe launch, and a number of capabilities in the first half of the year to drive mid- to long-term growth, profitability, and ultimately, free cash flow per share. For the last 6 years, we've been investing into establishing artificial intelligence and machine learning as key components of our technology platforms, with many use cases live and providing real monetary benefit. Right now, we have a group of about 70 data scientists and machine learning engineers, who work exclusively on training, refining, and deploying around 1,500 models per week across a multitude of different use cases all along the HelloFresh value chain. Most of our models are powered by the unique and proprietary data sets that we've accumulated over the last few years, such as customer order patterns, meal preferences, menu browsing behavior, and other rich customer preference training sets. Examples of AI/ ML-driven applications that are used daily in our operations include, for example, menu creation algorithms, near-real-time customer lifetime modeling, incentive individualization, customer service automation, or the load balancing of picks along our picking lines, lines in near real time. Most of these scaled use cases rest on predictive AI. We also continue to be excited about our forays into generative AI as well. For both types, the value of our own proprietary data sets is immense. For both types, the infrastructure demands to structure your own data, to store your data, compute, to make it consumable for the different application cases, follow very similar principles that we have gained strong experience in over the past six years. Outside of the AI/ ML use cases that we already have live today and that I just shared, we see lots of opportunity across all P&L line items to benefit from the advances of AI and specifically GenAI. Over the last six months, we've started experimenting with some use cases and become increasingly excited for their midterm potential. I don't want to read out each and every one here, but if you focus on some of the ones that we have in green here, those are ones that we're experimenting live with today already. So if I pick out one example from each of the G&A line items, for example, on the revenue side, we've seen good initial results to better leverage AI to understand fraudulent customer behavior and better crack down on it, actually identify that earlier and be more efficient in turning these customers away. In procurement and fulfillment, we've started to leverage computer vision to enhance the quality of our picking processes, and we aim to introduce this more widely for quality control purposes around our fulfillment centers around the world. In marketing, for example, we've seen tremendous opportunities for creative asset generation, such as simple copywriting, image generation, or video generation. Something that is done at the moment by many, many talented people inside of HelloFresh at agencies today, at varying quality levels, and where generative AI can play a big role in the midterm. It's also, I think, a really interesting use case to leverage real-time weather data and forecasts to dynamically adjust and configure our packaging solutions, which allow us to reduce packaging, which benefits the environment and helps us save on cost, plus provides a better user experience to customer. Finally, with regards to employee productivity and G&A, I think especially with regard to our engineering population, we're establishing code assistance tooling to make the coding process less error-prone, of higher quality, and achieve higher productivity in the process. Ultimately, in the mid to long term, a lot of these opportunities will eventually materialize and make us a better, more efficient business. It's hard to say what timeline we're exactly looking at to bring many of these opportunities into production, so into their daily usage versus simply test cases, where we've already seen good results. Given our experiences, given our talent and the investments that we've done over the last six years into structuring, cataloging, and storing our own proprietary datasets, we feel pretty well equipped to leverage the opportunities that are provided by this new technology. Let me return quickly to some of the numbers from the second quarter. First, starting with meals, we delivered around 254 million meals in the second quarter of 2023. After the unparalleled growth over the last three years, that's actually been the first year where we've been down in meals, about 6% versus last year, as we've rolled off the final pandemic comparable quarter, but we remain well on track to deliver more than 1 billion meals to our customers in 2023. While existing customers continued to show strong stickiness and actually ordered, on average, more meals per order than ever before, we pulled back on some of our marketing investments, given the softer consumer environment, elevated travel levels, and anticipated improvements of our unit economics into the second half of the year. We plan to shift a part of these budgets to H2, when we will have deep bottleneck Factor U.S. capacity and can drive more profitable growth as a result. In terms of average order rates, we increased that yet another 2% year-over-year to 4.1 orders per quarter per customer. That's a new record level for HelloFresh in the second quarter and more than 14% higher than the last pre-pandemic level that we had. Major drivers for this improvement are the enhancement of our product and recipe quality, better service levels, and a significant strengthening of the relative affordability against grocery and food delivery, which have been exposing their customers to a lot more inflation than we have in the process, gaining relative affordability. With that, I'd like to come to the average order value we have observed during the second quarter. AOV has been trending 8.4% higher than last year and has reached EUR 63.6 per order. This was the single biggest driver to our year-over-year positive net revenue growth. If you look at our two segments, AOV increased actually 9.7% year-over-year in North America and about 6.5% in our international markets. Three factors contributed to that growth in average order value. Number one, a higher contribution of RTE, specifically impacting the North American number. Price increases, and then very importantly, also, bigger baskets by our customers. On the one-hand side, with a, larger menu, they've taken on more meals per order on average. With the rollout of HelloFresh Market into the U.K., into France, and into Germany, we've also had a lot more customers exposed to our HelloFresh Market, and that contributes positively to increasing AOVs. The last two should really continue to be growth contributors going forward as we roll out HelloFresh Market and scale RTE. Even as inflation is rolling off, this will contribute to better AOVs going forward. Taken together, a reduction in the number of meals sent, but higher average order values led to a constant currency revenue growth of about 1% for Q2 to EUR 1.92 billion. Please note that the euro lost against most other currencies, euro-denominated figures are slightly down, whereas in constant currency, they're actually up. Q2 should have been the low point for growth, with re-acceleration of customers and number of meals expected for H2. Outside of easier comps, we see the scaling potential of Factor U.S. into H2 as very significant, we see a number of product enhancements hitting in the second half of the year, such as the expansion from 35 meals to 45 meals on our U.S. menu, as well as the rollout of HelloFresh Market into more and more geographies. Overall, much improved unit economics and an improved customer experience should make our growth in H2 more profitable, which is why we have shifted some of our budgets into these periods. With that, as always, I hand over to Christian to walk you through our cost line items and our free cash flow generation. Thanks, Dominik. I would like to start with the development of our procurement expenses. Despite an overall still inflationary ingredient pricing environment, we achieved a year-on-year margin improvement of 0.6 percentage points, by lowering our procurement expenses to 33.8%. Structurally, as you've seen consistently from us in the past, our AI-driven menu planning helps us to achieve consistently high customer satisfaction scores and recipe ratings, while also hitting consistently our margin targets. Now in Q2, specifically from a geographic perspective, our U.S. meal kit brands contributed meaningfully to this margin expansion, as well as certain key international markets, such as Germany and the U.K. Looking into the second half, you should expect a modest year-on-year increase of our relative procurement expenses as we, number one, ramp up our new Factor, ready-to-eat production facility in Arizona, and secondly, have a strong pipeline of new products and experiments coming through, as Dominik had alluded to. Okay, next, I would like to discuss the development of our fulfillment expenses. Similar to Q1, we have very meaningfully decreased our fulfillment expenses year-on-year by 2.3 percentage points. This is a continuation of the strong improvements that you've seen from us very consistently since mid last year. Especially our North America segment, continues to contribute significantly to this positive trend. As we have discussed in detail at our Capital Markets Day at the beginning of the year, we are meaningfully reducing our relative fulfillment expenses by, number one, optimizing our fulfillment center footprint, secondly, by driving process standardization, and thirdly, by ramping up the use of technology and automation. Besides these like for like ongoing improvements, a higher share of ready-to-eat and a higher overall average order value also helped to deliver lower relative fulfillment expenses. Now, the combination of both a relative improvement on procurement expenses and a meaningful increase in fulfillment efficiencies, means we've expanded our contribution margin by almost 3 percentage points to 28.4%. Now, this is the fourth quarter in a row that we consistently deliver meaningful contribution margin expansion. Both of our operating segments contribute well to this positive trend. Especially our North America segment, achieved a contribution margin of 31% in the quarter. We had promised at our Capital Markets Day that we would expand our contribution margin for the full year, this year, by at least 100 basis points. So far, we've delivered meaningfully more of that in each of the first two quarters, and also expect for the second half to at least be 100 basis points above last year's level. Now, I would like to discuss the development of our marketing expenses in Q2. We have spent somewhat less on marketing in Q2 than originally planned, based on the factors that Dominik had outlined. This meant that both absolute and relative market expenses in Q2 2023 were largely on par with the same period last year. In a reasonably soft consumer environment, we decided, based on our AI-driven proprietary marketing tools, to stay disciplined in the way we're deploying our capital, rather deferred some budget to the back-to-school period in autumn. This period will also coincide with the ramp-up of our new Factor facility in Goodyear, Arizona, which will go live towards the end of Q3. When we put all of this together, this means we have achieved the highest ever quarterly EBITDA in Q2. We achieved an EBITDA of EUR 192 million, higher than during any peak COVID period. We achieved this through strong contribution margin expansion, disciplined marketing spend, and very healthy retention and ordering behavior from existing customers. As a result, we delivered an EBITDA margin of 10%. In that sense, our Q2 profitability is already a template of how we see our 2025 full year margin target. A contribution margin of around 29%, marketing at circa 16% of revenue and EBITDA margin of circa 10%, so all in line with what we had discussed at our Capital Markets Day a couple of months ago. Our strong Q2 EBITDA margin performance also means that we are up for the full year, for the full H1 versus the same period last year. This hopefully also provides some comfort to those of you who feared at the beginning of the year that our EBITDA performance would be too back-end weighted and therefore would put our guidance at risk. Before we come to our guidance, I would like to also discuss the development of our free cash flows in Q2 and this, in the first half. In our Capital Markets Day, at the beginning of the year, we promised to get back to at least free cash flow break-even this year, after quite extensive multi-year CapEx program. In H1, we have increased our cash flow from operating activities to EUR 207 million, versus CapEx of EUR 169 million. This means we already in H1, delivered a positive free cash flow of EUR 38 million. Dominik had mentioned earlier today already, the long-term growth of our free cash flow per diluted share, is from our perspective, one of the most important drivers of value creation for our shareholders. We will continue to be focused to drive the nominator of this ratio, i.e., free cash flow growth over longer periods of time, but also continue to be disciplined to avoid the growth of the denominator. We've also started to report free cash flow per diluted share as a key KPI. Some of you will have noticed that this morning already at the front of our quarterly report. We report this in addition to reporting our absolute free cash flow, so that you can easily track our progress on this metric. Our strong business profile and our financial position, has also been recognized through the investment grade BBB- rating, which we recently received from S&P. This is a good illustration of our robustness and puts us several notches ahead of most other international e-commerce companies. Let me now conclude with our narrowed outlook for the full year 2023, which is effectively repeating what we had published earlier on July 19 already. We've narrowed constant currency revenue growth from previously 2%-10%, to now 2%-8%. Illustratively, this would result at the midpoint of this range, i.e., at a 5% constant currency growth rate in a full year revenue of circa EUR 7.7 billion, assuming FX rates as of mid-July, the time when we narrowed this guidance, which would mainly include a U.S. dollar to euro rate of around about 1.10, roughly where it is still today. Versus H1, we expecting a year-on-year re-acceleration of revenue growth from autumn onwards, as our Factor U.S. is not any more capacity constrained from Q3 onwards, and COVID comparables will have largely washed out by Q3, Q4, 2023. From an EBITDA perspective, given the strong Q2 performance, we have lifted the lower end of our previous range, therefore, currently expect EUR 470 million-EUR 540 million of EBITDA for the full year. For Q3, just keep our normal seasonality in mind, i.e., somewhat lower contribution margin due to less fixed cost utilization during the summer holiday period, and increased packaging and cooling material costs, due to peak temperatures in most of our markets. Secondly, seasonally higher marketing spend in the back-to-school period, where we, in addition, have carried over some extra budget from Q2 to take advantage of attractive opportunities when they arise, as discussed earlier. We look forward to your questions. The first question comes from Luke Holbrook, Morgan Stanley. Please go ahead. Good morning, everyone. Just a question, really, on if you can share some more color on, on actives falling in North America. Is this, do you think, due to increased competition? Is there a certain demographic that's changing? Just any more color there would be very helpful. Thank you. Luke, it's, it's Christian here. On the, on the first subpoint, no, it's not increased competition. When you look at whichever third-party data you have access to, market share data, investment, credit cards, for example, you will see that we continuously increase our market share across our new kid brands in the U.S., and certainly also on the ready-to-eat side, and this applies to both the second quarter, but frankly, any period you want to look at over the last five years in that market. Now, in terms of the year-on-year development, this is driven by two things. One, a reasonably soft consumer environment in North America, that you probably have heard from some other companies in that period as well. The fact that we effectively, since the first half of Q1, are at max capacity in our ready-to-eat business. Now the letter, as discussed, will be addressed as of the end of Q3. We debottleneck capacity constraints there. On the first one, we have good hopes that that is clear, gonna clear up over time as well. Okay, understood. Just on the capacity in North America, if your orders are down, I guess, 8% odd, is there a way that you can optimize warehouse capacity even further or, or change some of the distribution footprint going forward? Yeah, that's an, that's an ongoing process, but overall, we feel quite good with the steps that we've taken. You see that shining through in our contribution margin, obviously as well. A rationalization of our fulfillment center footprint and optimizing there, that's certainly one of the factors that helps to expand contribution margin. Thank you. The next question comes from Andrew Gwynn, BNP Paribas Exane. Please go ahead. Hi there. Good Good morning. Yes, apologies, took a very short term, but Q3 trading, or sort of guidance would be very useful. I presume there's significant seasonality, even more pronounced than last year, appreciate an improvement from September onwards, but as we say, in July and August, presumably trends are pretty subdued. Yeah. Obviously reasonably early in that quarter. Keep in mind, we still at the, I would say, in the, in the back half of peak holiday season for us. There's not a lot we can tell you about Q3 trading, other than that, it's fully in line with our plan on the basis of which we've given our guidance. Dominik said earlier that you expected growth at trough, so year-on-year growth at trough in Q2, so Q3 presumably expected to be better and then much better in Q4. Is that the right sort of shape? That's, that's ballpark the, the right shape. Sequentially, a modest move up in Q3 and then more pronounced in, in Q4. Correct. Yeah, perfect. Thanks very much. The next question comes from Joseph Barnet-Lamb, Credit Suisse. Please go ahead. Excellent. Thank you, team. When you talk about shifting budgets into 2H, it'll be more profitable. I imagine you mean from a sort of CAC versus LTV perspective. In, in the remarks, you sort of gave some reasons to believe that LTV would be better, but could we talk a little bit about CAC? I think CAC was sort of rising through last year, then I think you said at 1 Q that it had been sort of flat from 4 Q into, into 1 Q. Has CAC remained flat in Q2, or have you seen a bit of a, a movement upwards? What are your thoughts on CAC into, into 2H? Thank you. Yeah, sure. What we did see is, as the pandemic ended, sort of like in late 2021, 2022, or early 2020, early 2022, we saw some sort of like increased, slightly increased customer acquisition costs, but it's really been broadly flat to slightly down since. We haven't seen sort of like additional inflation in customer acquisition costs. As we outlined during the Capital Markets Day, at the same time, we've actually grown our LTV more, so our LTV to CAC these days is at the same or better levels, for most of the markets that we operate in. There are always some regional differences, but high level and company-wide, sort of like we have increased LTVs more than CAC has increased since the pandemic ended. Thanks, Dominik. There wasn't a sort of movement up in CAC in Q2, which is sort of one of the, the drivers for you pushing the spending into H2. In Q2 2022, there was a move up, and ever since, we've kept it broadly stable. Used Q2 2023 this year to really work on our contribution margin, to work on our product enhancements, to make sure that we get the capacity, debottleneck and Factor, so that we can drive profitable growth, now in the back-to-school season and all the way through Q4. Excellent. Thank you. Yeah, no, I'm in Q2 2023 versus Q1 2023, there have been no incremental increase, and it sounds like you're saying there has not been an increase. Thank you. Correct. The next question comes from Emily Johnson, Barclays. Morning. Can you please walk us through what your expectations are for the market and as well, your kind of meal kits versus ready-to-eat mix to get to the bottom and the top end of your revenue growth guidance? For example, if Factor grows as planned in H2, what would need to happen to the rest of the business for you to only achieve the 2% revenue growth given easing comps? A kind of follow on from that, in terms of Factor growth in the second half, what gives you confidence in not just when the capacity comes through, but I guess, the consumer, kind of subscribing to it, given the weakness you've seen in Q2, and to what extent do you think you benefited in the second half last year, in the first half this year from the closure of Freshly? Thanks. If I can answer that. On the, on the first one, as you know, we're, we're not giving granular guidance on a per-brand basis. If we change that, I'll definitely make sure you will know, but we're not giving that. Qualitatively, what makes us confident that we can further step up growth at Factor once we've got the production capacity is really the latent demand that we are seeing. Right now we have to be reasonably, our marketing teams have to be reasonably constrained, in terms of the campaigns that they run, not to generate more demand as much we can serve. That's the ongoing fight on a week-by-week basis, so to pair back there. We think we're quite confident that once capacity is debottlenecked, that there will be quite healthy demand for that. The next question comes from Nizla Naizer, I'm sorry, Deutsche Bank. Please go ahead. Your line is open. That's okay. Hi, just two questions from my end. Firstly, you mentioned that there was some marketing from Q2 now being pushed back to sort of Q3 to Q4. Just on the back of that, how should we think of the customer base evolving in Q3? Could it be sort of a typical seasonality quarter where there could be sequential declines, or could it even be flat with the incremental marketing that you're now spending after the declines we saw in Q2? Some color there would be great on maybe how the base case of your, of the customer base evolution. My second question is on your 2025 outlook. To get to the EUR 10 billion of revenue, you would now need sort of double-digit growth from 2024 to 2025. How confident are you that growth could accelerate from these levels? If Factor is the reason, we'd love to get some color on, on, on the scale of that growth that you anticipate, to get to those targets. Thank you. On the first point on customer growth, if you assume for Q3, broadly stable customers, but again, there's some variance, some potential variance left, left to right from that, especially given when you think about Q3, where, let's say customer acquisition is somewhat back-end loaded. We're only gonna embark on back-to-school in most of our key geographies in September onwards. Even people we bring on board then may not have received a first delivery still in that quarter, and therefore, would not count as an active customer. There is some variance in that, but sequentially versus the 7.3 in Q2, if you assume broadly stable with a little bit room for variance left, left or right. On your second question, so, confidence on our midterm growth to sit north of, north of 10%, we remain confident, and the drivers really are unchanged from what we discussed in detail at our Capital Markets Day at the beginning of the year. Thanks. The next question comes from Nick Coulter, Citi. Please go ahead. Hi, good morning. Nick Coulter from Citi. I have three quick ones, if I may, please. Firstly, for the NAM segment, could you update on the underlying level of pricing going through, like, the underlying price per meal increase year-over-year? I guess by default, that will kinda give us the impact of RTE marketplace and surcharges. Secondly, could you update on the customer number overlap between Factor and the other brands in the NAM segment, please? I know it's a small percentage, but it'd be helpful to have an update, please. Thirdly, just to clarify, I think, Christian, you mentioned a modest move up for the third quarter. Which income statement line were you referring to with that, please? Thank you. Nick, on the on the impact of of pricing, so the of price per meal of the 8.5% AOV increase that you've seen from us, year on year, roughly 5%-6% are both of that combined, so price and mixed combined. Then, 2%-2.5% is basically further expansion of the take up in surcharge as well as basically HelloFresh Market. I'm sorry, there was some noise here. Do you, do you mind to remind us of your second and third question? Yeah, sure. It was just on the, the customer number overlap between Factor and the other brands in, in NAM. I think you've given it previously as, as being a small percentage, but just to kind of get a sense of how that's, that's trending. Yeah. For the, for Factor and, North America, I couldn't tell you here spontaneously. What we've also shown in the report is basically that for the group overall, so if you take all brands together, that overlap is somewhere around 150-ish, for 150 key customers. By deduction in the U.S., it's even smaller. The bottom line is, it's, it's de minimis, frankly. Okay. Thank you. On the, the modest move up for, for the third quarter that you mentioned earlier, which income statement line does that refer to, or which statistic does that refer to, please? So that was on, on our procurement expenses. So, year on year, procurement expenses as% of revenue, given that basically we will start in the second half to, so from end September onwards, to use that new Factor capacity. As you know, Factor comes with a somewhat high, with somewhat high procurement expenses, and then a number of quite exciting product enhancements and experiments that we want to push through basically in the second half, and that has a certain impact as well. The combination of both means year on year, modest procurement expense on a relative basis, expansion in the second half. Having said that. contribution margin overall, we are still targeting to increase also in the second half by north of 100 basis points. Expanding margin despite of that, also in both Q3 and Q4. Thank you. That's helpful. I was referring. I think Dominik mentioned an inflection or growth bottoming in the second quarter. I think Andrew asked you a question on clarifying that, and you said there would be a modest move up for the third quarter with respect to growth. I was trying to understand, I think it's obviously some sort of sales line, was the question. I see. So- sorry. Yes. A modest sequential step up in revenue growth. Versus the round about 1% year-on-year growth that you've seen from us in the second quarter, and then a more pronounced step-up in Q4. Thank you. That's helpful. The next question comes from William Woods, Bernstein. Hi, good morning. Thanks for taking the question. Just on active customers, in terms of the kind of 9% drop, are you able to give us a rough breakdown between losing existing customers and the newer customers, or any kind of guidance there? How does that impact your AOV? Are you seeing the mix of customer types help your AOV? Thank you. Hey, William, it's Christian here. As you know from the shape of our retention pattern, typically we see very little churn, basically, from customers, the more, the longer they're with with our service. Therefore, any reduction customers would then more be weighted towards more recently acquired customers. Got you. Thank you. Does that I suppose that helps your AOV, right? Because you shift to a full price paying existing customer versus a newer, maybe discounted customer. Is that a factor in the AOV move? This, this is overall beneficiary to average order value as well. Correct. Thank you. The next question comes from Muskan Kedia, Goldman Sachs. Please go ahead. Your line is open. Okay, so I'd like to repeat, the next question here would be Muskan Kedia. Hi, can you hear me? Yes, right now. Hi. Sorry, I was on mute. Sorry. It's actually it's Muskan from, from Goldman. I think the first question I have is just in terms of how you think about marketing versus customer acquisition. Clearly, in the second quarter, you initially guided to 7.7 million, and you ended up a bit lower than that. Historically, you've been quite good at predicting the number of new customer additions based on the marketing spend that you were planning. Just wondering, has anything changed in terms of the visibility? I just wondering, like, what basically happened for you not to be able to achieve your the guidance I think you initially gave? Obviously, I think that's important, given, obviously, that will give us maybe also more confidence in terms of the second half and the longer-term guide. That's the first question. Secondly, is just on the capital allocation. You obviously have EUR 340 million of net cash. Just wondering, I mean, obviously, with the share price is attractive, in terms of how you think about the buyback and the potential timing of that. Thank you. Yeah, super. It's Christian here. To your first question, I would really repeat what Dominik had mentioned earlier. We decided that in a reasonably soft consumer environment, it would be more beneficial for us to defer some of that spend into the back-to-school period in autumn, other than spend relatively aggressively ahead of or into the summer period. That's really that was the driver of the near term. Active active customer development. On your second point, that's noted. In case we take a decision on capital allocation, for example, to something like a share buyback, we would communicate that at that point in time. Okay, thank you. The last question comes from Sebastian Patulea, Jefferies. Please go ahead. Thank you very much. Good morning, everyone. thank you for, for, for the presentation. may I please ask, what makes you confident that after the Arizona facility gets launched at the end of Q3, that demand is there? can it be the case that you launch it and, and growth for Factor 25 is, is not accelerating? what are you seeing that gives you confidence that demand is there, please? Maybe you're canceling some orders, or you cannot fulfill some orders. You, you tell me, please. What makes us long-term confident that in RTE, but as well in meal kits, we're very early days in the growth trajectory, is the incredibly low penetration number that we have today. Obviously, if I talk about meal kits here first, when you triple a business in three years, it's very, very hard to just continue, kind of like, growing, each and every year and each and every quarter. We will be growing each and every year. We will be returning to double-digit growth in the near future. The timing of some of that growth is not always entirely in our control. That's for the meal kit business. For Factor specifically, we're at even lower penetration than we are in the meal kit business, and if you just look at the category that has been established in the U.S., that's about $12 billion-$15 billion of ready meals actually sent in retail. We do believe that our product is much, much higher quality, what you can find there. We're at very low penetration levels at the moment, and even if we double from the current run rate, we're still at very low penetration levels. What we did see since the beginning of the year is that even running at sort of like, half of the marketing budget that we actually wanted to ideally run on, we had to pull back in a lot of weeks and actually use some of the COVID playbooks that we have developed in switching off certain channels, in introducing like a third shift in onboarding 3PLs to basically manage some of that demand. There's a lot of anecdotes around here, that make us quite confident that we will be able to capture significant demand. Once again, I think the long-term opportunity is incredibly intact. There's very few other categories which, in a short span of a decade, have actually scaled to around $8 billion in revenue run rate, shipping 1 billion in meals, and that not every single quarter is always up and to the right as we manage through multiple, multiple crises at the same time. I think that's pretty clear. In the midterm, I think there's no way around, as this business will be a lot bigger in two years and three years, and in 10 years than what it is today. Thank you very much, Dominik. If I may ask a second question, please. Are there any countries in which customers started to sign up to HelloFresh due to the affordability factor? The reason why I'm asking this is because in the group's history, there were a few times when HelloFresh decreased prices and growth has meaningfully accelerated. Were there any countries in which the specific factor why people signed up was because it was becoming more affordable? Thank you. I'm not sure if I 100% understood your question. If it is around pricing, then I think generally our philosophy is that we wanna increase prices less than overall inflation and strengthen our relative affordability against grocery and food delivery. We think we can do that because we have more levers to mitigate price increases that we see in the market than those companies have, because we're fully vertically integrated. That's why both in terms of in, in, in times of inflation, also in terms of more minor inflation, we should always be able to strengthen our relative affordability as we gain scale and as we move through the powerful flywheel of giving back excess margin to consumers to enlarge our overall target market. Thank you for that. I was asking more if customers became aware or if they are aware that you guys are more affordable than you were 2 years ago, for example, from, from, from that perspective. From some of the surveys that we actually take, we have seen that there is a modest increase in customers who feel that HelloFresh is actually like a great affordable alternative. I think the numbers, some of those numbers we poll on a quarterly basis, customers all around the world. At least we have seen that despite the fact that we've increased prices on an absolute level, we have not seen that customers actually think we're more expensive than grocery or more expensive than food delivery. The relative affordability, I think we have proof points that customers understand, that they continue to find better and better deals at HelloFresh. Thank you, Dominik. That was it. Cheers. Thank you for attending our Q1 earnings call. I think overall, I see big focus on some small margin movements or active customer numbers here and there. I do think the long-term opportunity is more than intact. You will see us kind of like a re-accelerating growth in Q3 already, and I do think there is many, many growth opportunities and many, many growth vectors where we've already laid the foundations for within the group. Plus, we will be maintaining sustainable free cash flow generation for the next years to come. Overall, I think the risk is here very much skewed to the upward, and we're obviously hoping to prove that out over the next quarters to come to take advantage of the massive long-term opportunity that we're going after. Thanks for your attention, and I'll speak to you all soon.