Meal-Kit Company HelloFresh Expects Sales to Rise by 62% This Year

Meal-kit delivery firm HelloFresh has raised its sales growth expectations and adjusted its core profit margin target to 10.25%, up from an original goal of 8.25%, Reuters wrote Monday (Nov. 1).

This year, the company experienced a rise in both customers and order rates, with HelloFresh expecting sales to rise by 57% to 62% this year on a constant currency basis — an upgrade from 45% to 55% from before.

Chief Executive Dominik Richter said the third quarter has seen the company continuing to invest “heavily” in product and service levels, which has been “significantly improving the value proposition for our customers,” he said, per Reuters.

“With all of these investments in place, we remain focused on reaching our mid-term revenue target of 10 billion euros and on paving the way to becoming the world’s leading food solutions group,” Richter said.

PYMNTS reported that HelloFresh had doubled its orders in Q3 last year and had hit a new record of 5 million customers worldwide in 2020.

Read more: HelloFresh Hits 5M Customers and Nearly 20M Orders

At the time, the company said there had been a record number of orders with 19.49 million, which was a 114% increase year-over-year.

Richter was quoted in a press release saying that there had been a definite trend in the pandemic of eating more often at home. He said this was likely to be permanent in the company’s opinion, adding that consumers “will continue to rely on e-commerce to shop for food in a safe and convenient way and additionally, they will continue to work from home and therefore eat more meals at home,” which has proved true in 2021.

PYMNTS also recently reported that HelloFresh had the largest market share of meal kit providers, with 2020 sales of $1.1 billion.

Read more: Deep Dive: How Consumers’ Growing Appetite for Subscription Services Can Help Sustain the Food and Restaurant Industries

The report notes that the pandemic has changed food service throughout the past two years, including restricted options to dine out, insufficient time to prepare food and the limited options for takeout-made meal kit subscriptions. However, the once-struggling meal kit industry has since made new gains that other analysts have also said will likely be permanent.