By Mauro Orru
HelloFresh SE has increased its revenue target for the year after third-quarter sales jumped ahead of market expectations amid strong customer growth and high order rates.
The German meal-kit maker said late Monday that revenue for the third quarter climbed to 1.42 billion euros ($1.65 billion) from EUR970.2 million last year, beating market expectations of EUR1.31 billion.
The number of active customers jumped 39% to 6.94 million, while the number of orders rose 42% to 27.59 million.
The company now targets revenue growth at constant currency for the year between 57% and 62% instead of between 45% and 55% as previously expected.
"We further expanded our total addressable market by successfully launching HelloFresh in Norway in July and in Italy in October. With all of these investments in place, we remain focused on reaching our mid-term revenue target of EUR10 billion," Chief Executive Dominik Richter said.
However, HelloFresh still expects an adjusted margin for earnings before interest, taxes, depreciation, and amortization of between 8.25% and 10.25% this year.
Adjusted Ebitda, a closely watched profitability metric for HelloFresh, fell to EUR79.8 million in the third quarter from EUR114.7 million last year, with its corresponding margin down to 5.6% from 11.8%.
Write to Mauro Orru at mauro.orru@wsj.com; @MauroOrru94