Stronger than expected for the food box giant

Publicly listed company HelloFresh has seen a lot on social media in recent years. The German company is one of the world’s largest suppliers of lunch boxes and set up in Norway in 2021.

On Thursday, HelloFresh reported better-than-expected base revenue for the first quarter as customers returned to the service, offsetting high seasonal marketing and acquisition costs, according to Reuters.

Quarterly adjusted core profit (EBITDA) fell 33.4% to 66.1 million euros, but beat analysts’ average estimate of 47.5 million euros in a survey provided by the company.

HelloFresh, like other food delivery services, has benefited from the pandemic. The company has invested heavily in influencers, who have been paid to promote the service on channels such as YouTube, TikTok and Instagram.

Drop of customers

“Our primary focus now is to further expand our customer offering,” CEO Dominik Richter said in a statement, according to Reuters.

The number of active customers in the first quarter fell 4.8% to 8.11 million from the same period last year, but was up from 7.11 million in the previous quarter.

Revenue rose 5.3% to 2.02 billion euros in the quarter, just below analysts’ estimate of 2.03 billion euros. The sale was driven by growth in the North America segment, which since the start of this year includes the company’s Canadian operations, which were previously part of the international segment, according to Reuters.

Ralph Hutchinson

"Creator. Communicator. Twitter evangelist. Passionate couch potato. Thinker. Pop culture aficionado. Award-winning web junkie."

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