Berlin (dpa) – Kitchen box mail order company Hellofresh sees its business on a strong long-term growth trend after a significant increase in profits.
“During the pandemic, the tendency to eat more at home increased,” said co-founder and CEO Dominik Richter in Berlin on Tuesday. Consumers would continue to depend on online retailing. In addition, due to the current situation, they will continue to work a lot from home and, consequently, will eat more in their own four walls. Management assumes that the trend will continue in the long term.
Hellofresh benefits from the fact that more and more customers are staying at home and cooking for themselves or the fact that the restaurant industry has closed again, as is the case today. The fourth quarter is looking good for the company due to new lockdown measures in the Covid 19 pandemic, JPMorgan analyst Marcus Diebel wrote. But he remains cautious for next year.
The MDax company had already presented key data for the last quarter in mid-October and has already raised the forecast again in the face of strong growth. The number of active clients reached a record high of five million.
They ordered 19.49 million times from Hellofresh, which was more than double than a year ago, and they also spent 3% more per order at an average of about 49.70 euros. Sales increased 120 percent to 970.2 million euros.
The group registers about half of its orders in the US; Customers there spend slightly more per order than in the rest of the Hellofresh stores, and order more often, but fewer meals. Slightly more than half of the sales come from the US business, but recently the rest of the business grew slightly faster after adjusting for currency effects.
The end result was that the Berlin-based company generated 74.4 million euros of profit between July and the end of September. That was more than three times more than a year ago.
Earnings before interest, taxes, depreciation and amortization (adjusted Ebitda), adjusted for special effects, increased in the third quarter from 15.5 to 114.7 million euros. Although acquisition costs and sales costs increased by a similar dimension to sales, marketing and administrative costs increased significantly less.
Management confirmed the forecast, which was increased for the third time this year in mid-October. Hellofresh expects sales growth of 95 to 105 percent after adjusting for currency effects and an adjusted Ebitda margin of 11.25 to 12.75 percent in 2020.
The Hellofresh stock is one of the few stocks that was hardly under pressure, even in the fall of Corona in February and March. In the current year, the title has shown a plus of more than 160 percent. Hellofresh is currently worth around eight billion euros on the stock market.