Covid-19: HelloFresh reports strong performance in the first quarter of 2020

HelloFresh has reported a 66.4% year-on-year revenue increase in the first quarter of 2020, reaching €699.1 million. This sales growth was partly driven by the additional demand for meal kit deliveries caused by the Covid-19 pandemic during the second half of March.

The retailer saw a substantial rise in the number of active customers in the first three months of 2020 to 4.18 million, representing a year-on-year increase of 68.4%. Additionally, the group had a positive AEBITDA of €63.1 million, which compared to -€26.1 million in Q1 of 2019, with a significant reduction in paid marketing expenses contributing to this figure. This meant an overall group AEBITDA margin of 9% for Q1 of 2020: for the US region, this was 11.3%, and for the international segment, 10%.

HelloFresh also reported a positive free cash flow in the period of €111 million. This has increased the meal box retailer’s overall cash position to €299.8 million, which will help the business during the uncertainty of the Covid-19 crisis.

Dominik Richter, co-founder and CEO of HelloFresh said: "On top of our already very strong first two months of the year, our meals have attracted significant additional demand in the second half of March, as the global pandemic hit all of our markets in short order. Especially in those times, it makes us proud that we were able to deliver 111 million meals to families throughout the world, allowing them to enjoy incredible home-cooked meals from the safety of their homes at a very affordable price point."

Due to the increased demand for its services during Covid-19, HelloFresh has revised its full year 2020 outlook. It has raised its expected revenue growth from 22-27% to 40-55% and increased its predicted AEBITDA margin from 4-5.5% to 6-10%.

The retailer also revealed it has donated over €3 million to food banks in the countries it operates.