German meal-kit delivery firm HelloFresh has raised its 2020 guidance, as continued coronavirus lockdowns boosted its first-quarter performance in the United States and other international markets.
HelloFresh, which outplayed struggling rival Blue Apron in its core market United States and is active in countries such as Germany, Britain, Australia and Canada, saw benefits from more frequent orders from existing and new customers, as increased brand recognition leads to lower marketing costs.
The Berlin-based company, which allows customers to choose among online recipes and have pre-portioned ingredients delivered to their doorsteps, now expects revenue growth between 40% and 55% on a constant currency basis, up from a previously announced range of 22% to 27%.
Adjusted earnings before interest, taxes, depreciation and amortization (AEBITDA) margin should now come in between 6% to 10%, the company added.
"On top of our already very strong first two months of the year, our meals have attracted significant additional demand in the second half of March," chief executive Dominik Richter said in a statement.
The company reported first-quarter sales growth of 66.4% year-on-year to €699.1 million and AEBITDA of €63.1 million. Both figures were in line with the guided range of €685 million to €710 million for sales and €55 million to €75 million for AEBITDA.
HelloFresh results came few days after U.S.-based peer Blue Apron posted a sharp decline in quarterly sales, saying however it expected a bump in orders in recent weeks to be reflected in the second quarter.