HelloFresh Group, a survivor in the battered world of meal-kit providers, says it has achieved U.S. profitability for the first time.
The Berlin-based online retailer, which operates the HelloFresh, Green Chef and EveryPlate online brands in the U.S., said it expects to report U.S. sales for the 2019 fiscal year of about $1.1 billion and adjusted earnings before interest taxes, depreciation and amortization (EBITDA) of $10 million to $11 million, according to unaudited figures.
HelloFresh expects to publish full-year financial results March 3.
“We finished the year with an exceptionally strong fourth quarter. As a result, we are profitable for the full year on an adjusted EBITDA level, making 2019 the most successful year for HelloFresh so far,” Dominik Richter, CEO of HelloFresh, said in a release.
HelloFresh has operated in the U.S. since 2013, outlasting dozens of competitors that rose and quickly fell behind high customer acquisition costs. In a presentation for investors late last year, Hello Fresh said its share of the U.S. market for home delivery of meals had grown to about 50% as competitors fell away. The company said it also lowered its acquisition costs as scale and brand awareness have risen.
Based on preliminary figures, the company said it expects to achieve a group contribution margin between 28.5% and 28.7% of sales in the fiscal year 2019.
In addition to its Hello Fresh brand, the company acquired the certified organic meal provider Green Chef in 2018. Later that year, it launched the value-focused EveryPlate brand.