Adjusted earnings rose for German meal-kit company HelloFresh SE in the third quarter of the year compared to the same period of the previous year.
HelloFresh reported on Tuesday that its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) for the third quarter of 2024 increased to €72.1 million from €69.2 million ($78 million from $74.9 million) in the prior year.
This rise was driven primarily by the company's disciplined focus on achieving a strong return on investment on its marketing spend. Marketing expenses for the group decreased in the third quarter of 2024 year-on-year, both in relative and in absolute terms.
Quarterly revenues were approximately €1.83 billion, representing a year-on-year growth of 1.9% in constant currency. This revenue increase was primarily fuelled by a 3.8% rise in average order value on a constant currency basis, which more than compensated for a slight anticipated decline in group orders. The reported revenue growth was 1.4%.
Recently, the company revised its adjusted EBITDA outlook for fiscal year 2024, but reduced its annual revenue growth forecast.
HelloFresh has cut its annual revenue growth outlook to 1% to 1.7% on a constant currency basis, down from 2% to 8% as previously guided.
However, the company raised its annual adjusted EBITDA outlook to €360 million €400 million from the prior outlook of €350 million-€400 million.