HelloFresh expects a significant rise in profit this year, after a considerable drop in 2024. The meal specialist has turned the corner thanks to its new strategy to save on marketing investments and focus on productivity gains.
“Efficiency reset”
HelloFresh’s turnover grew modestly in 2024 (by 0.9 % to 7.66 billion euros), but its adjusted operating result fell by 11 % to 399 million euros – which was, admittedly, still above expectations. This year, AEBITDA is expected to rise sharply to 450 to 500 million euros, the company expects, despite an expected turnover drop of 3 to 8 %.
After five years of growth, HelloFresh entered a new phase halfway through last year, in which profitability takes precedence over growth. The meal kits and prepared meals deliverer focuses on fewer, but higher-quality customers who place larger orders. The company accepts it will have to endure volume decreases while shifting its focus to improving efficiency and productivity. CEO and co-founder Dominik Richter speaks of an “efficiency reset”.
The first tangible results of this approach became visible in the fourth quarter: spending on marketing fell to 16 % of its total turnover, compared to 19.1 % a year earlier. While the margin fell to 25.8 % over the entire year, it recovered to 27.1 % in the fourth quarter. Turnover fell by 3 % in the same quarter.
