HelloFresh Posts Big Q3 Revenue Gains
Third quarter sales at HelloFresh surged 120% to $1.13 billion as the online retailer's approach to the meal kit trend continues to resonate with shoppers.
HelloFresh also reached 5 million active customers globally, and reported that the number of orders increased 114% to 19.49 million during Q3. In the U.S., the number of orders increased 130.7% year over year, reaching 9.52 million. HelloFresh has 2.51 million active customers in the U.S., a 122% increase.
The meal kit provider said the quarter saw the continued strong engagement by active customers as well as an increase of new customers.
Both operating segments (US and International) more than doubled their revenue compared to the same period in the previous year. While the International segment grew 131.5% based on constant currency, the US segment grew 124.7%, despite facing continued capacity constraints throughout the quarter.
While the International segment reached an adjusted EBITDA of about $81.8 million and a margin of 15.7%, the US Segment reached an adjusted EBITDA of about $67.4 million, which corresponds to a margin of 10.9%.
“The trend towards eating more meals at home accelerated during the pandemic and we consider the key drivers for this to have become permanent,” said says Dominik Richter, CEO and co-founder of HelloFresh. “Consumers will continue to rely on e-commerce to shop for food in a safe and convenient way and additionally, they will continue to work from home and therefore eat more meals at home. We see this trend reflected in our continued strong customer growth and consistently higher customer engagement across all markets, despite COVID-related restrictions being lifted during Q3.”
In the U.S., the company in Q3 donated more than 4.1 million pounds of surplus food, equivalent to 3.47 million meals were donated to food banks. Additionally, HelloFresh US has donated over 500,000 meals specifically designed for the food insecure as part of its "Beyond the Box" program to communities near the company’s operations in New York and New Jersey.
In late October, rival meal kit provider Blue Apron said that its net revenue for the third quarter of 2020 increased 13% year over year to $112.3 million — thanks in part to pandemic ordering.