HelloFresh is raising its guidance for full-year revenue growth after the Germany-based meal-kit maker reported a surge in sales and customers in the first quarter.

Revenues were up 59.8% in constant-currency terms at EUR328.1m (US$393.19m), prompting the company, which listed in Frankfurt last November, to revise its growth estimate to 30-35% for 2018 compared to 25-30% previously.

Losses in adjusted EBITDA narrowed in the quarter to EUR21.7m from a negative EUR29.6m, and HelloFresh now expects that metric to ”break even” during the year. Total group customers increased 61.7% to 1.88m.

Margins as a percentage of revenues climbed to 26.1% from 20.3%.

Those estimates do not include the impact from the acquisition of US peer Green Chef, which was announced in March following the company’s entry into the North American market in 2013. HelloFresh expects that purchase to add around EUR15m in revenue per quarter starting in the second quarter.

Chief executive and co-founder Dominik Richter said: ”We got off to an excellent start in 2018 and continue our strong growth, while consistently expanding our margins. As a result, we have strengthened our leading global position and made the barriers to market entry even higher for potential competitors. At the same time, we’re selectively expanding the variety and flexibility of our offering to fulfil even more of our customers’ wishes.” 

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By GlobalData

Founded in 2011, HelloFresh delivers its products in the US, the UK, Germany, the Netherlands, Belgium, Luxembourg, Australia, Austria, Switzerland and Canada.

By geographical region, the US outperformed in terms of revenue growth, which climbed 72.5% on a constant-currency basis to EUR207m, with adjusted EBITDA trimming losses to EUR13.7m from EUR22.8m. Customers increased 68.9% to 1.21m.

HelloFresh said the company is now “the market leader in the important US market”. 

The company’s international division posted first-quarter revenue of EUR121m, up 42%, while EBITDA came in at a loss of EUR1.1m versus a negative EUR3.9m a year earlier. The number of customers rose 50% to 670,000.