E-commerce and food delivery services are struggling with high inflation.

Anyone who has to save because of increased electricity and gas costs will think twice before going on a shopping spree on the Internet – or getting a subscription to cooking boxes with prepared ingredients.

This is exactly the business model of the Berlin Dax group Hello Fresh.

Maximilian Sachsen

Editor in Business

  • Follow I follow

But the company believes that it can also benefit from the increased prices.

The company had to raise prices, said co-founder and boss Dominik Richter on Monday when presenting the quarterly figures in Berlin.

But the increases were not nearly as strong as in supermarkets.

"It puts us in a better position to compete with supermarkets."

Hello Fresh has the advantage that it can decide for itself which menus it sends, Richter explained the differences.

"This allows us to select foods that are not as badly affected by price increases." The company has also increased productivity in its warehouses and packaging sites.

Record sales in the second quarter

The company achieved record sales of EUR 1.96 billion in the second quarter.

This corresponds to growth of 16 percent compared to the previous year - despite the difficult general conditions.

In addition, the company was able to increase the average order value by eleven percent compared to the previous year.

In the meantime, Hello Fresh's concerns about the economy are not going away entirely.

Operating profit before interest, taxes, depreciation and amortization was 145.9 million euros in the second quarter and thus below the 157.8 million euros achieved in the same period of the previous year.

There, the company still benefited greatly from the Corona boom.

The number of active customers rose by a good 4 percent to eight million in the second quarter compared to the same period last year, but that is more than 500,000 fewer subscribers than in the first quarter.

Only in July did the company have to adjust its annual targets downwards with reference to consumer sentiment.

Instead of an increase of 20 to 26 percent, Hello Fresh now only expects an increase in sales of between 18 and 23 percent.

For the operating profit, the Berliners are aiming for between 460 and 530 million euros.

Previously, 500 to 580 million euros were planned.

Concerns about the Dax relegation

The share price rose by up to 6 percent by Monday afternoon after the business figures were announced.

Hello Fresh is also considered a potential candidate for relegation to the M-Dax.

HelloFresh was only 46th in the July Dax rankings. However, the company would only drop from 48th place. Co-founder Richter was relaxed.

"It's an honor to be represented in the Dax," he said, "but being relegated to the M-Dax would hardly affect our operational business." Deutsche Börse will make the decision on September 5th.