(Image Source: hellofreshgroup.com)
The HelloFresh Group announced its Q1 2024 results, achieving a record quarterly revenue of approximately €2.07 billion, marking a 3.8% growth in constant currency compared to Q1 2023. The company’s performance was supported by a notable increase in average order value (AOV) by 6.5% on a constant currency basis.
Despite a slight overall volume decline of approximately 2.6%, HelloFresh Group maintained growth through increased AOV across North America and International segments. The contribution margin stood at 25.2% in Q1 2024 compared to 26.3% in the same period in 2023, mainly due to higher RTE production costs during its rapid expansion phase.
Key Highlights:
- Revenue Breakdown: Revenue from the Ready-to-Eat (RTE) product category surged by around 56.2%, while the meal kit category experienced a slight decline of approximately 6.9% year-over-year in constant currency.
- Positive AEBITDA: HelloFresh Group achieved a positive Adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (AEBITDA) of €16.8 million, with a margin of 0.8% in Q1 2024, compared to €66.1 million and a 3.3% margin in Q1 2023.
- International Expansion: HelloFresh expanded its RTE offering beyond the US, launching in Sweden and Denmark. This expansion follows successful introductions in Australia, Canada, the Netherlands, and Belgium.
- Infrastructure Development: The company continued its investment in automated distribution centers in the UK and Germany, along with ramping up RTE sites in the US.
HelloFresh Group’s outlook for fiscal year 2024 remains consistent, targeting 2% to 8% revenue growth in constant currency and an AEBITDA of €350 million to €400 million.
As Dominik Richter, co-founder and CEO of HelloFresh commented: “For the first quarter of 2024 we report our highest ever revenue per quarter and a significant year-on-year growth in average order value. Our continued investments into the customer proposition for meal kits, such as introducing menu customization 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”.
