HelloFresh: Solid Q1 Results And Its Growth Momentum Continues

Summary

• Solid top line growth as the company benefits from Covid-19 restriction.
• Management guided 10% EBITDA margin in FY20.
• Jaw-dropping valuation level.

In its short history as a publicly-listed company, HelloFresh has continued to positively surprise the market with its ability to over-deliver on growth, in most cases through better-than-expected customer acquisition as the category gained traction faster than the market anticipated. Q1-20 was no exception; even prior to social distancing measures that resulted in an increase in demand in the last two weeks of March, HelloFresh was growing at rates above 40% in January and February. I believe the company was functioning at full capacity in most markets in April and May, restricting its ability to take on more customers but this is easing as capacity gets added and order rates trend towards normal conditions. This may signal that Q2 could be another solid quarter, paving the way for an H2 that could make the current full-year outlook appear conservative… READ MORE @ Seeking Alpha