Meal kit firm HelloFresh has exceeded market expectations to achieve its ‘highest ever’ quarterly consolidated adjusted EBITDA in the second quarter of its financial year, according to preliminary results.
HelloFresh’s consolidated adjusted EBITDA for the second quarter is expected to range between €185 million and €195 million – up from €146 million in the same period last year.
Consolidated revenue for the quarter is likely to grow, year on year – by around 1% on a constant-currency basis – to approximately €1.92 billion (on a euro-reported basis).
HelloFresh will publish its financial statements for the second quarter and the first six months of its financial year on 10 August 2023.
Growth Drivers
HelloFresh attributed the growth in adjusted EBITDA to faster-than-expected contribution margin expansion and the timing of its growth and advertising investments.
The company decided to shift some of its growth and advertising investments into the second half of the 2023 financial year, against the backdrop of soft consumer confidence environments in some geographies and ongoing capacity constraints at its subsidiary and ready-meal firm Factor 75.
The company’s active customers were down by a high single-digit percentage during the quarter, while its average order value increased equally, on a constant-currency basis, and orders per customer increased by a low single-digit percentage on a year-on-year basis.
Consequently, its performance in the second quarter was partly driven by lower marketing spend and a higher average order value.
The company has narrowed its revenue growth outlook for the 2023 financial year to a range of 2-8%, from its previous forecast of 2-10%.
In April, HelloFresh reported a smaller-than-expected decline in first-quarter core earnings as it saw customers return to its service, offsetting high seasonal marketing and procurement costs.
