HelloFresh, a Germany-based meal-kit delivery company, is facing challenges in meeting its “mid-term” revenue and profit targets. The company reported relatively flat revenue for 2023 along with a decline in adjusted EBITDA, prompting a re-evaluation of its business plan. The original goal was to achieve €10bn ($10.9bn) in revenue and €1bn in adjusted EBITDA by the 2025 financial year, but HelloFresh now acknowledges that these targets are unlikely to be met.
The company’s preliminary revenue for 2023 was €7.597bn, showing only marginal growth from the previous year. Adjusted EBITDA is expected to be around €448m, falling below the 2022 figure of €477m. HelloFresh anticipates that adjusted EBITDA for 2024 will also be lower than the previous year.
Investments in production, fulfillment, and marketing have contributed to lower than expected financial results, as well as the impact of reduced volumes on fixed costs. However, HelloFresh remains optimistic about its 2024 revenue growth outlook, projecting a 2-8% increase in constant-currency terms.
The company operates in various markets, including other European countries, the US, Canada, Au
stralia, New Zealand, and Japan. Despite the challenges, the company sees potential for growth in its ready-to-eat product vertical which is experiencing a 50% year-on-year growth rate.
Although shares of HelloFresh have declined by about 21% recently, the company remains focused on capitalizing on strong demand in key product categories and markets. It aims to close the negative volume and revenue gap compared to 2023 as it progresses through the year.
Transitioning to the food and beverage industry trends, HelloFresh is adapting to a changing operating environment while navigating the challenges of the market. As the company continues to evolve its offerings and expand its reach, it remains committed to delivering high-quality meal kits and ready-to-eat products to consumers worldwide.
