HelloFresh has sold fewer meal kits last quarter, continuing a longer trend. However, the German company sold significantly more ready-made meals, making that category the driver for growth in the coming years.
Marketing efficiency
At HelloFresh, profitability comes before growth these days. While the company delivered fewer meal kits in the third quarter, the average value per order increased by 3.2 %. This resulted in a modest 1.4 % rise in sales to 1.83 billion euros in the third quarter. In terms of profit, the meal delivery company defeated expectations with its adjusted EBITDA of 72 million euros (+ 4.2 %).
The company says it is focusing on marketing efficiency, becoming more selective in attracting new customers. Existing customers do continue to show “robust behaviour”. At the same time, the company is improving productivity.
Market leader in ready-to-eat
The ready-to-eat category increased sales by almost 40 %. This branch will be the main growth driver for the next three years, both in terms of sales and profitability, CEO Dominik Richter said. “Today, we are already the RTE market leader in the US and have developed the product, technology and food manufacturing capabilities to reach many more people around the world with our RTE products”, he points out in a press release.
HelloFresh had already revised its outlook for this year last week: instead of sales growth of 2 to 8 %, the company is now aiming for 1 to 1.7 %. Adjusted EBITDA will be slightly higher though, raising the lower region of the outlooks from 350 to 360 million.
