HelloFresh, the online supplier of meal boxes, is very satisfied with the course of events and is already raising its revenue forecast for this year for the third time.
The German company is now counting on a turnover growth of 75 to 95 percent. This means that in the most optimistic scenario, sales will increase to around EUR 3.5 billion.
The fact that the previous forecast was only from mid-July shows how fast things are going. “A resurgence of Covid-19 in some of our markets has boosted demand for our products,” the statement read.
While the global wave of corona infections is driving many companies to despair, the corona virus appears to be a growth engine for HelloFresh. At the beginning of this year – before Covid-19 was talked about – management expected ‘only’ 22 to 27 percent growth, but orders for meal boxes have been rolling in at full speed since the first lockdowns.
HelloFresh in the second quarter of 2020
- 4.2 million customers (+ 75%).
- 18.1 million orders (+ 103%).
- 149 million meals (+ 122%).
- 972 million euros in turnover (+ 123%).
- 153.6 million euros gross operating profit (EBITDA) (+ 739%).
Consumers appeared to opt en masse for the HelloFresh home deliveries. The meal boxes contain all the ingredients – and the recipe – they need to prepare one or more meals. This reduced the need for them to go to the supermarket, avoided the queues and avoid the risk of contamination. The HelloFresh concept also turned out to be useful for many home workers to quickly put together a warm, nutritious meal as an alternative to a restaurant visit.
HelloFresh’s customer base already has 4.2 million lines, three quarters more than a year ago. The company has not only won new souls, the amount per order is also higher than ever.
The growth in recent months has been exceptional. We see that customers have adopted new habits. They order more meals in their weekly menu because they spend more time at home.
‘The growth in recent months has been exceptional. We see that customers have adopted new habits. They order more meals from their weekly menu because they spend more time at home, ‘says Dominik Richter, co-founder and CEO of HelloFresh. Other companies in the sector such as Just Eat Takeaway, Delivery Hero and the Belgian Mealhero are also experiencing golden times. “The corona virus has pushed our turbo button,” it said earlier at Mealhero.
HelloFresh also expects to derive extra profit from every euro that comes in. It expects to book an operating cash flow margin of between 9 and 11 percent this year, compared to the earlier forecast of 8 to 10 percent. The company benefits from higher volumes and economies of scale in production and logistics. Thanks to advanced software for transport planning, the delivery vans are 16 percent fuller than a year earlier.
HelloFresh is a pioneer in the world of meal boxes and is now active in a dozen countries, including the US and Belgium. It was originally able to grow under the wings of the German Rocket Internet, was profitable for the first time last year and has a market value of almost 8 billion euros.
Other companies from the Rocket Internet stable are also doing well during the corona crisis. Zalando benefited from the store closings and saw its customer base increase by 20 percent to 34 million.
We got out of the first wave of the corona pandemic stronger than we got into it.
“We got out of the first wave of the corona pandemic stronger than we got into,” said Chief Financial Officer David Schröder. ‘We are on the way to becoming the starting point in consumers’ search for fashion items.’
Zalando is counting on 15 to 20 percent revenue growth in 2020, and an operating profit of at least 250 million euros.