Berlin-based HelloFresh publishes Q3 financial reports; announces €150M share buy-back programme

Berlin-based HelloFresh, a meal-kit company, announced on Thursday, October 26, its financial results for Q3, 2023. 

The company achieved a positive 3.5 per cent YoY revenue growth on a constant currency basis, reaching a revenue of €1.80B in Q3 2023. 

The company’s constant currency revenue growth further accelerated in September 2023. This growth can be attributed to HelloFresh’s product improvements and ongoing efforts to expand its service.

All-time high Average Order Value

HelloFresh‘s average order value in Q3 2023 reached an all-time high of €64.2, reflecting a 7.5 per cent increase on a constant currency basis compared to Q3 2022. 

This significant growth in average order value is attributed to HelloFresh’s continuous product improvements and expansion of its services.

The company’s efforts to increase the number of weekly meals and the take-up of its offering in the marketplace “HelloFresh Market” have contributed to this achievement, reveals the company. 

Continued Expansion of Contribution Margin

HelloFresh has experienced a continued increase in its contribution margin, which reached 25.6 per cent in Q3 2023, compared to 24.5 per cent in Q3 2022. 

This 1.1 percentage point increase is primarily driven by the company’s efforts to improve fulfilment operations and increase efficiencies. 

HelloFresh says its focus on optimising its operations has resulted in enhanced profitability and contributed to its strong financial performance.

In terms of adjusted EBITDA, HelloFresh group reached €69.2M (Q3, 2022: €71.8M), corresponding to a group margin of 3.8 per cent. 

Share buy-back programme

HelloFresh has announced a share buy-back programme with a total combined volume of up to €150M, including the repurchase of certain convertible bonds. 

The management board of HelloFresh, with the consent of the company’s supervisory board, has resolved to introduce this buy-back programme. 

The programme aims to enhance shareholder value and reflects the company’s confidence in its future growth prospects.

Outlook for 2023

HelloFresh reconfirms its outlook for the full year 2023, expecting revenue growth on a constant currency basis of approximately 2 per cent to 8 per cent for the HelloFresh Group. 

The company also anticipates an adjusted EBITDA between €470M and €540M for the full year 2023.

HelloFresh: Transforming home cooking for busy lives

HelloFresh was founded in 2011 by Dominik Richter, Griesel, and Jessica Nilsson in Berlin, Germany. 

The founders recognised the potential of the meal-kit industry and set out to address the needs of busy individuals and families who desired to cook at home but lacked the time for meal planning and grocery shopping.

HelloFresh started its operations in Germany and rapidly expanded to the Netherlands, the UK, the US, and Australia in 2012. The company gained popularity and attracted a growing customer base by offering convenient meal kits that featured pre-portioned ingredients and user-friendly recipes.

The company also claims the recipe box ingredients are sourced directly from producers and efficiently delivered to customers’ homes. By providing pre-measured ingredients, HelloFresh says it helps minimise food waste. 

This streamlined supply chain reduces packaging and repackaging, producing 25% fewer carbon emissions than supermarket ingredients. 

HelloFresh also supports sustainable living through its partnership with Social Farms & Gardens. The company aspires to foster community engagement and knowledge about food sources through local allotments.