HelloFresh Announces Strongest Quarter to Date
HelloFresh, a leading meal kit company, has significantly improved its margins while accelerating growth. On group level, the FY AEBITDA improved to EUR (70) million (FY 2016: EUR (83) million) with an AEBITDA margin of (7.7) percent (FY 2016: (13.8) percent). On track to breakeven, the company managed to continuously expand its margin over the course of the year resulting in a Q4 2017 AEBITDA margin of (2.4) percent (Q4 2016: (10.3) percent). On segment level, the International business reached full AEBITDA profitability for the first time, while the US business came close to breakeven.
In parallel, HelloFresh continued its strong growth path in both segments. In 2017, HelloFresh delivered over 137 million meals (up 51% from FY 2016: 91 million) to its approx. 1.45 million customers (up 69% from Q4 2016: 0.86 million) resulting in FY revenues of EUR 905 million (FY 2016: EUR 597 million), corresponding to a revenue growth of 52 percent on group level. In constant currency, the company accelerated the revenue growth rate every quarter with +43 percent in Q1 2017, +52 percent in Q2 2017, +53 percent in Q3 2017 and +69 percent in Q4 2017. On segment level, US Segment grew in 2017 by 90 percent to a revenue of EUR 545 million (FY 2016: EUR 287 million) and the International Segment by 16 percent to EUR 360 million (FY 2016: EUR 310 million).
“2017 marks the most successful year for our business to date. Not only did we successfully list our company on the stock market but we also significantly improved all our key metrics, with an outstanding AEBITDA expansion in both segments leading the way,” says Dominik Richter, CEO and co-founder of HelloFresh SE.
For 2018 the company expects to reach breakeven in its core business in Q4 2018 and to grow its FY revenues by 25-30 percent with Q1 revenue growth above that range.
In terms of growth strategy, HelloFresh will primarily focus on increasing the penetration in its core markets by enlarging its customer base and expanding the product portfolio. Through the acquisition of the USDA-certified organic meal kit company “GreenChef” which was signed yesterday, HelloFresh US will reach out to new and previously untapped customer segments, including those following organic, vegan and gluten-free lifestyles, as well as Paleo and Keto compliant plans.