Meal kit company HelloFresh has reported approximately 3.8% year-on-year increase in revenue in constant currency in the first quarter of its financial year.
This growth was supported by a 'healthy increase' in average order value of 6.5% on a constant currency basis, the company noted.
Revenue for the quarter amounted to €2.07 billion, which it says is its 'highest ever quarterly revenue'.
Adjusted EBITDA for the period amounted to €16.8 million, with a margin of 0.8%.
Dominik Richter, co-founder and CEO of HelloFresh said, “Our continued investments into the customer proposition for meal kits, such as introducing menu customisation options and product incentives, show promising results.
"This is evidenced by continuously improving customer lifetime values and very predictable order patterns of our customer base.”
Growth Drivers
The company's RTE (Ready-To-Eat) offering continued to benefit from strong demand, with revenue of €496 million in the first quarter, reflecting a 56% year-on-year increase in constant currency.
The meal kit category delivered revenue of €1.6 billion, corresponding to a decline of 6.9% year on year from €1.7 billion in the first quarter of 2023.
Richter stated, “After tripling our meal kit revenues from 2019 to 2022, we saw a temporary slowdown more recently, however our strategic goal to diversify revenues is paying off nicely.
Our Ready-to-Eat product category is scaling at high rates, and our brand Factor is one of the fastest growing consumer brands in North America, more than offsetting the decline in meal kit revenues."
Outlook
HelloFresh added that its outlook for the fiscal year 2024 remains unchanged. It expects constant currency revenue growth to range between 2% to 8%.
"RTE revenues now account for a quarter of total group revenues and we expect this share to grow further in the future. As part of this strategy, we have announced launches in additional European markets recently, adding to the success we saw with prior launches in the US, Australia and Canada,” Richter added.
The company will now offer its RTE products in Sweden and Denmark.
