📦 HelloFresh's Mixed Performance
HelloFresh's sales grew by 0.9% to $2.1B in Q2 2024. However, this slight growth conceals contrasting trends: meal kit sales dropped 9.3% to $1.5B, while prepared meals surged by 45% to $571M. CEO Dominik Richter highlighted the success of the company's investments in prepared meals, a key growth area despite the overall slowdown.
📉 Decline in Meal Kit Sales
The company delivered 244M meals, a decrease of 3.9% from last year. Orders also fell by 3.6% to 28.9M. Despite these declines, HelloFresh managed to increase the average order value by 5.6% to $74, aligning with its strategy to focus on high-value customers who are spending more.
💰 Financial Performance and Margins
Adjusted EBIT dropped from $211M to $160M due to the expensive launch of new production sites. Despite this, HelloFresh maintained a solid margin of 7.5%, with meal kits offering a higher margin of 12.2% compared to 4.0% for prepared meals. The company is working on cost optimization and reducing discounts to protect its margins.
📈 Outlook for the Year
HelloFresh is optimistic about its full-year performance, forecasting a sales increase of 2-8% and an adjusted EBIT of $385M-$440M. The company's dual focus on meal kits and prepared meals, with a growing emphasis on the latter, positions it to navigate the challenges in a competitive market.
Will HelloFresh's focus on prepared meals pay off in the long run?
