Subscriptions provide sticky growth for HelloFresh

HelloFresh was able to sustain a high growth rate of +45,9% despite the high comparison numbers from Q3/2020 (growth of +120% to Q3/2019). The subscription nature of the HelloFresh business enables higher customer retention and thus the variability of the sales remains lower.

The profitability (AEBITDA) of the company decreased by -30% as a result of increased marketing efforts. Despite higher marketing investments the number of active customers decreased from the previous quarter. However, the amount of active customers was up by +39% from the prior year.

Despite the decrease, the profitability of HelloFresh is still: 5,6%. That is a really high margin for an online grocery retailer. The company also forecasted higher profitability for the last quarter of the year, which is traditionally the best for grocery retailing in general also for HelloFresh.