HelloFresh Q1 Revenue Increases 2.9%, RTE Segment Boosts Growth
In its first-quarter 2023 financial report, HelloFresh SE (OTCPK:HLFFF) announced a 2.9% year-over-year increase in revenue to €2.07 billion. The company attributed this growth to its Ready-to-Eat (RTE) segment, which saw a 56.2% surge in revenue on a constant currency basis.
Despite a 2.6% decline in group orders, HelloFresh experienced a 6.5% expansion in average order value (AOV), driven by both its European and US operations. However, meal kit revenue experienced a 6.9% negative growth on a constant currency basis.
The company’s contribution margin decreased to 25.2% compared to 26.3% in Q1 2023, influenced by initial ramp-up costs of new fulfillment centers and the rapid growth of RTE in the US. Nevertheless, HelloFresh reported a positive AEBITDA of €16.8 million with a margin of 0.8%.
HelloFresh Confirms 2024 Targets
Despite the challenging consumer environment, HelloFresh remains optimistic and has reconfirmed its targets for 2024. The company projects constant currency revenue growth of 2% to 8% and AEBITDA between €350 million and €400 million on a Group level.
HelloFresh’s financial performance in Q1 indicates that the company is continuing to adapt to the changing consumer landscape. The strong growth in its RTE segment and the expansion in AOV demonstrate the company’s ability to meet evolving customer demands. While the decline in meal kit revenue is a concern, HelloFresh’s positive AEBITDA and reconfirmed targets for 2024 suggest that the company is well-positioned for future growth.
