Delivery

HelloFresh sales surge as pandemic drives demand for meal delivery

Image courtesy of iStock

August 11, 2020

Sales at HelloFresh, the Germany based meal kit delivery company, jumped 122% at constant exchange rates in the second quarter as consumers are embracing food delivery in the face of the coronavirus, according to a report. in The Wall Street Journal. The company's operating margin also rose to 13.8% compared to 0.3% in the year-ago period.

The company, which does half of its business in the U.S., boosted its 2020 sales and profit expectations for the third time this year.

Consumers typically are making seven evening meals per week compared to four pre-COVID-19, according to the company.

Average orders are also increasing, while marketing costs have fallen as consumers are seeking out the service on their own, according to the company. HelloFresh's marketing costs fell from 21% during last year's second quarter to 8.5%.

The usual summer decline has not occurred this year as consumers are not vacationing.

For an update on the pandemic's impact on convenience services, click here.