HelloFresh Had a Record-Breaking Year
HelloFresh sales and profit soared in the fourth quarter, capping a strong year of demand from the pandemic-led increase in consumers cooking at home.
HelloFresh said revenue more than doubled for fiscal 2020 in the U.S. (up 102.3% year-over-year) and globally (up 107.3% y-o-y) as the company saw revenue rise to $1.3 billion, delivering more than 600 million meals to customers in 14 markets. Adjusted gross operating profit (AEBITDA) rose to $610 million, more than a tenfold increase compared to 2019.
The record fourth quarter results mark HelloFresh’s strongest quarter yet, driven by sequential growth in the number of active customers, reaching 5.3 million at the end of the fourth quarter, as well as strong order rates and an increase in average order value. Adjusted earnings before interest, taxes, depreciation and amortization more than quadrupled in the final quarter of last year, reaching $209.4 million.
In 2020, the company posted a $446 million net profit, compared with a net loss of $445 million a year earlier, while revenue more than doubled to $4.4 billion, it said.
“2020 was without a doubt marked by unprecedented events. On the basis of our robust infrastructure, we managed to scale up our operations quickly to accommodate the rising demand. I am very proud of the team for this incredible achievement of delivering over 600 million meals to our customers in the safe space of their homes,” said Dominik Richter, CEO and co-founder of HelloFresh. “Preparing and eating food at home has taken on a whole new meaning. As the pandemic hopefully winds down over the course of 2021, we expect consumers to continue to rely on e-commerce solutions to shop for food, as many have experienced the superior value proposition that we can offer in terms of price, variety and convenience.”
Despite pandemic challenges, the global meal kit company continued to invest in growth initiatives, closing the acquisition of ready-to-eat meal company Factor75, launching operations in new markets and expanding product offerings and capacity.
Specifically in the United States, the company’s key market, HelloFresh added two new U.S. distribution centers in Newnan, Georgia, and Irving, Texas, providing expanded supply chain capabilities in key Southeastern and central-Texas locations — indicative of the company’s investment in long-term growth plans to better serve new and existing customers in HelloFresh’s growing addressable market.
“As we have scaled the business, our customer value proposition has also become a lot better. Today, we’re able to delight a lot more diverse customer groups than a few years ago. Our investments into a larger menu, better service levels and better affordability have really paid off. Going forward, we want to further expand our offering and become the leading food solutions group globally,” Richter added.
For the full year 2021 HelloFresh Group expects revenue growth on a constant currency basis between 20% and 25% and an adjusted EBITDA margin between 9% and 12%. This outlook takes the expected financial impact of the acquisition of Factor75 into consideration.
HelloFresh will present its 2020 Sustainability Report on March 16.
HelloFresh SE is the world’s leading meal-kit company and operates in the United States, the United Kingdom, Germany, the Netherlands, Belgium, Luxembourg, Australia, Austria, Switzerland, Canada, New Zealand, Sweden, France and Denmark. In third quarter 2020, HelloFresh delivered over 162 million meals and reached 5 million active customers. HelloFresh was founded in Berlin in Nov. 2011 and went public on the Frankfurt Stock Exchange in Nov. 2017. It has offices in New York, Berlin, London, Amsterdam, Sydney, Toronto, Auckland, Paris and Copenhagen.
