HelloFresh continues strong growth

World’s biggest meal kit company (and online grocer) reported very robust growth for the third quarter of the year. With 31,4% growth HelloFresh outpaces the online grocery competition by a wide margin.

As many of the online grocers struggle with both growth and profitability, HelloFresh has both. However, the prfoitability has come down sharply since the height of the pandemic. In Q3/2022 the company reported 0,1% EBIT margin.

Despite the improved efficiency in fulffilment, the profitability was eroded by a 58% jump in marketing costs as well as General and Administrative costs (+85%). With 18% of revenues, marketing still far from the levels prior Covid, when it was around 30% of revenue.