Dive Brief:

• HelloFresh achieved a new global revenue high during its first quarter of 2.02 billion euros ($2.2 billion), the German meal kit company reported Thursday. The company noted in an earnings presentation that this is the first time it has exceeded 2 billion euros in quarterly revenue.
• The company’s North American segment recorded a revenue of 1.3 billion euros ($1.4 billion) during the quarter, up 9.7% over the same period last year. That market saw increases in both average order value and orders per customer. 
• However, HelloFresh saw year-over-year declines in its number of orders and number of active customers in North America. 

Dive Insight:

HelloFresh said that its new quarterly revenue record ties back to its “well diversified revenue streams” as the company has navigated a challenging economic landscape. 

HelloFresh’s latest earnings follow a similar trajectory to its fourth-quarter results, in which the company’s U.S. segment saw year-over-year drops in the number of active customers and number of orders while seeing an increase in its number of meals delivered.

At the start of this year, HelloFresh expanded its ready-to-eat brand Factor to Canada. The company’s latest earnings results do not differentiate its U.S. market from its North American one, which now includes its Canadian operations.

During Q1, HelloFresh’s North American market saw its number of active customers drop to 4.63 million from 4.87 million in Q1 2022 — a 4.9% dip — and number of orders decline 3.6% year-over-year. Meanwhile, its orders per customers and average order value for that segment were up 2.5% and 13.9%, respectively.

HelloFresh’s North American segment saw a 5.5% increase in constant currency in Q1 in comparison to the same period a year ago.

The company said its average order value increase for that market was offset by the decrease in active customers. Meanwhile, it saw both its marketing costs as well as its general and administrative expenses as a percentage of revenue grow. 

The company’s Q1 earnings report also noted where the meal kit maker stands on several of its initiatives underway. The HelloFresh Market — an online store featuring add-on meals and grocery items that started in Europe and then arrived in the U.S. in summer 2021 — has grown from being in nine markets in Q1 2022 to 12 in Q1 of this year.