HelloFresh Turns in Strong Quarterly Performance
HelloFresh closed out its third quarter with a 45% increase in group revenue on a constant currency basis and a 51% increase in U.S. revenue growth compared to the third quarter of 2020 as the German food solutions company continued to expand its service internationally and broadened production capabilities and offerings in key markets. The healthy third quarter was attributed to a sizable increase in active customers, high order rates and an increase in average order values, perhaps linked to price inflation.
Its performance in the United States remained strong during the period, as HelloFresh increased its base by 39.8% to reach 3.48 million active customers. Reflecting consumer’ use of meal services at a time when the market has yet to normalize, orders in this country increased 41.6% compared to the third quarter last year.
Based on the strength of its year-to-date performance, the company has updated its full revenue growth outlook on a constant currency basis to between 57% and 62% from 45% to 55%. The updated guidance takes into account growth from a recent acquisition that will be consolidated into fourth quarter revenue. HelloFresh has not, however, change its adjusted EBITDA (“AEBITDA”) margin outlook, still anticipating a full year 2021 AEBITDA margin for the HelloFresh Group between 8.25% and 10.25%.
"In Q3 2021 we have continued to invest heavily into our product and service levels, significantly improving the value proposition for our customers. We have also doubled down on the ongoing expansion of our production capacity to create the right platform for strong long-term growth. In addition, we further expanded our total addressable market by successfully launching HelloFresh in Norway in July and in Italy in October. With all of these investments in place, we remain focused on reaching our mid-term revenue target of €10 billion, and on paving the way to becoming the world's leading food solutions group," explained Dominik Richter, co-founder and CEO of HelloFresh.
In addition to growing its business in Norway and Italy, the company bolstered its presence in Russia, acquiring a stake in that country’s leading meal kit company, Chefmarket, and closing a deal to acquire the Australian ready-to-meat meal company Youfoodz. HelloFresh also diversified its business in the United States during the third quarter, launching the HelloFresh Market online store to offer add-ons like pantry essentials and quick meals.
This month, HelloFresh marks its 10th year as a meal solutions provider.
Headquartered in Berlin, with U.S. offices in New York, HelloFresh SE is the world’s leading meal kit company and operates in the United States, the United Kingdom, Germany, The Netherlands, Belgium, Luxembourg, Australia, Austria, Switzerland, Canada, New Zealand, Sweden, France and Denmark. The company is No. 75 on The PG 100, Progressive Grocer's 2021 list of the top retailers of food and consumables in North America.
