HelloFresh SE, a renowned German meal kit company, announced an increase in its adjusted EBITDA for the third quarter of 2024. The figure rose to €72.1 million, up from €69.2 million in the previous year. This growth is largely attributed to the company's strategic focus on optimizing its marketing expenditures to yield substantial returns. During the same period, the company managed to reduce its marketing expenses both relatively and slightly in absolute terms.
In terms of revenue, the company reported approximately €1.83 billion for the quarter, marking a 1.9% year-on-year increase in constant currency. This revenue boost was mainly driven by a 3.8% rise in the average order value. This increase successfully offset a slight, expected decrease in total orders. The reported revenue growth stood at 1.4%.
In recent updates, HelloFresh revised its financial projections for the fiscal year 2024. While the company improved its adjusted EBITDA outlook, it curtailed its annual revenue growth expectation. The revenue growth forecast was adjusted to a range of 1% to 1.7% on a constant currency basis, down from the previous 2% to 8% projection. However, the company increased its annual adjusted EBITDA target to between €360 million and €400 million, up from the earlier forecast of €350 million to €400 million.
