HelloFresh third-quarter sales more than double as stay-at-home orders surge

FILE PHOTO: A basket filled with beers and food from a downstairs barbecue, is lifted up with a string to neighbors, during the spread of the coronavirus disease (COVID-19) in Hamburg, Germany March 28, 2020. REUTERS/Fabian Bimmer

(Reuters) – HelloFresh HFGG.DE said on Tuesday sales more than doubled in the third quarter, as the German meal-kit delivery company saw an increase in customers while existing ones ordered more frequently during the coronavirus-led lockdown.

Quarterly sales of 970.2 million euros ($1.13 billion) came in at the upper end of the expected range of 968 million to 971 million euros.

Revenue in the U.S. division surged 124.7%, despite facing continued capacity constraints throughout the quarter, the company added.

HelloFresh, which considers the United States as its key market, lets customers choose online recipes and delivers the pre-portioned ingredients to their doors. Like rivals, such as New York-based Blue Apron APRN.N, the German firm also benefited from a surge in orders as more people take deliveries and cook at home due to lockdowns.

The Berlin-based company, which delivers pre-portioned meal ingredients with recipes to subscribers, reported third-quarter adjusted earnings before interest, taxes, depreciation and amortization (AEBITDA) at 114.7 million euros, also in line with its outlook of 112 million euros to 117 million euros.

“The trend towards eating more meals at home accelerated during the pandemic and we consider the key drivers for this to have become permanent,” Chief Executive Dominik Richter said in a statement.

Shares in HelloFresh have gained about 150% year-to-date, hitting a record high in mid-October as the company posted upbeat expectations for quarterly results and hiked full-year outlook.

The company confirmed its full-year outlook for a revenue growth of 95-105% at constant currencies and an adjusted earnings before interest, taxes, depreciation and amortization (AEBITDA) margin of 11.25%-12.75%.

($1=0.8580 euros)

Reporting by Linda Pasquini; Editing by Clarence Fernandez and Sherry Jacob-Phillips

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