HelloFresh Reports ‘Continued Strong Revenue Growth’ in Q3

HelloFresh saw year-over-year growth in active customers, number of orders and meals delivered across markets, according to the company's recently reported third-quarter 2021 results. In the U.S., the Berlin-based meal kit company reached 3.48 million active customers, up 39.8% year over year, and tallied 14.12 million orders (up 41.6%) and 108.1 million meals delivered (up 48.7%). U.S. revenue grew (in constant currency) 51% to 794.5 million Euros, or more than $920 million, in the third quarter of fiscal 2021.

The company saw continued strong revenue growth on a group level of 45% year over year on a constant-currency basis in this year’s third quarter, following the anticipated return of more-normal summer seasonality compared with the third quarter of 2020. This strong revenue growth was driven mainly by a significant increase in active customers (38.8%), with strong customer engagement illustrated by high order rates and an increase in average order values, says the company.

“In Q3 2021, we have continued to invest heavily into our product and service levels, significantly improving the value proposition for our customers. We have also doubled down on the ongoing expansion of our production capacity to create the right platform for strong long-term growth,” said Dominik Richter, co-founder and CEO of HelloFresh, in a statement.

Richter also pointed to the company’s international investments, launching HelloFresh in Norway in July and in Italy in October. “With all of these investments in place, we remain focused on reaching our midterm revenue target of 10 billion Euros and on paving the way to becoming the world’s leading food solutions group,” he added. 

Global Market Penetration

HelloFresh continues to invest into both expanding its TAM (total addressable market) and increasing its TAM penetration in existing markets. Initiatives included launching HelloFresh in Italy and successfully closing the acquisition of Australia’s leading company in the ready-to-eat segment, Youfoodz. The company also recently announced its acquisition of an approximately 10% stake in Russia’s leading meal kit company, Chefmarket, by way of a cash capital increase. The investment represents a strategic step for HelloFresh to tap into an emerging market with significant growth potential, says the company.

Based on the HelloFresh Group’s revenue growth year-to-date through October, the company's management board has announced it will raise HelloFresh's full-year 2021 revenue growth outlook on a constant-currency basis to between 57% and 62%, up from between 45% and 55%. Based on current exchange rates, this would translate into a Euro-reported revenue growth of approximately 2% to 3% lower than the revenue growth on a constant currency basis. The increased growth outlook includes an approximately 0.4% growth contribution from the Youfoodz acquisition, which closed Oct. 27 and will be consolidated for the months November and December 2021 in HelloFresh Group’s revenue.