HelloFresh warns for dip

HelloFresh enjoyed a record year in 2022, in which the company delivered more than a billion meals. However, this spring the meal box provider expects fewer customers.

Fewer customers

Sales reached a record level of 7.6 billion euros in 2022, more than a quarter more than a year earlier. The meal box delivery company reached 7.1 million active customers, but saw operating profit (EBITDA) fall by a tenth to 477 million euros.

The outlook for 2023 is rather pessimistic: HelloFresh thinks profits may fall further and is now forecasting between 460 and 540 million euros of EBITDA, down from the 547 million euros expected by analysts. Excluding currency effects, the meal-box delivery company expects a sales growth of 2 to 10 %, significantly slower than in 2022. The number of orders is also expected to grow only relatively moderately this year.

Raising prices

While costs are rising, the German company fears that the number of active customers will fall slightly in the first half of 2023, returning to growth only in the second half of the year. High inflation is affecting consumers’ household budgets, while they are also once again cooking less often for themselves and eating out more now that all corona restrictions have disappeared.

There will be no layoffs for the time being, but HelloFresh says it will focus on cost control and profitability. Price increases are one of the tools for this, but the company also wants to improve retention of its existing customers by expanding its range and offering more choice options.