Even though HelloFresh had promised to be out of the red before the end of the year, the meal box provider now chooses new investments over achieving that result. Strong results make the company go for a further American growth.
Positive figures
In the second quarter of this fiscal year, HelloFresh saw its turnover go up by 39 % to 319.7 million euro and its adapted EBITDA was positive both internationally (4.1 %) and in the US (2.0 %). Still, the company will not achieve break-even, despite earlier promises, as it chose to invest in further growth. Excluding exchange rate fluctuations, yearly growth this year should be between 32 and 37 %, slightly higher than the 30 to 35 % that it had put forward in the beginning of the year.
HelloFresh will now invest more in the United States, where the company wants to launch a wider range to cater for a larger segment of the population. EveryPlate was started to aim for the lower priced segment, while Green Chef – acquired in March – is more premium. HelloFresh has been involved in a fierce battle with market leader Blue Apron.
The company has also started collaborations with retail partners, making its meal boxes also available in supermarkets. “In view of the growing demand in the meal kit market and beyond, we want to establish ourselves as the best provider across all customer and price segments,” said CEO Dominik Richter.
