FRANKFURT (Reuters) – Meal-kit delivery firm HelloFresh on Monday raised its outlook for sales growth in 2021, citing a rising number of customers as well as high order rates.
The group said it now expects sales to rise by 57% to 62% this year on a constant currency basis, from 45% to 55% previously, adding that it would keep unchanged its adjusted core profit margin target of 8.25% to 10.25%.
“In Q3 2021 we have continued to invest heavily into our product and service levels, significantly improving the value proposition for our customers,” Chief Executive Dominik Richter said.
“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.”
At constant currencies, third-quarter sales rose 45% to 1.41 billion euros ($1.64 billion) while adjusted earnings before interest, tax, depreciation and amortisation fell 30% to 79.8 million, resulting the margin to more than halve to 5.6%.
Frankfurt-listed shares in the company, whose orders grew 41.6% to 27.59 million in the third quarter, were up 2.2% following the news.
($1 = 0.8620 euros)
(Reporting by Christoph Steitz; Editing by Chris Reese and Mark Porter)
