HelloFresh SE (OTCPK:HLFFF) has released its financial results for the first quarter of 2023, showing a 2.9% year-over-year increase in revenue to €2.07 billion. While meal kit revenue declined by 6.9%, the company experienced strong growth in its Ready-to-Eat (RTE) segment, with revenue increasing by 56.2% on a constant currency basis.
Group orders declined by 2.6% year-over-year, following a similar trend observed in Q4 2022. However, average order value (AOV) increased by 6.5% on a constant currency basis.
The contribution margin decreased to 25.2% from 26.3% in Q1 2023, impacted by ramp-up costs for new fulfillment centers and the rapid growth of RTE in the US. HelloFresh reported a positive AEBITDA of €16.8 million with a margin of 0.8%.
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.