CashNews.co
The UK arm of Hellofresh significantly cut its pre-tax loss as its turnover edged closer to the £500m mark and it cut 15 per cent of its workforce, it has been revealed.
The London-based business has reported a pre-tax loss of £755,000 for 2023, according to newly-filed accounts with Companies House, after posting a loss of £22.1m in 2022.
Over the same period, the firm’s turnover increased from £468.4m to £489.9m.
The results also show that the average number of people employed by Hellofresh UK fell from 2,159 to 1,842 in the year.
The last time the UK arm of Hellofresh made a pre-tax profit was the £8m it reported in 2020. Since then it has lost almost £50m.
Hellofresh continues UK investment drive
A statement signed off by the board said: “In 2023, Hellofresh UK grew [its] topline and improved profitability despite continued macroeconomic volatility in the UK which saw food inflation reach its highest level in over 45 years, supply chain disruptions from new and existing geopolitical conflicts and [the] continued cost-of-living crisis with [the] Bank of England’s rate reaching its highest for 16 years.”
Hellofresh added that its topline increased by five per cent year on year while it boosted its operating profit by £16.4m year on year.
It said: “We were able to do this without compromising our investment in product and service quality due to a strong marketing performance and ongoing improvement in our fulfilment efficiency, which unlocked further opportunities to streamline our fixed capacity.
“In 2023, we continue[d] to invest in developing and retaining top talent, completed the build out of our next-gen automation warehouse in Derby and expanded our product portfolio including the launch of Hellfresh Markets featuring new add-on items that address meal occasions like breakfast and snacks.”
The wider Hellofresh group, which is headquartered in Berlin, reported a revenue of €7.59bn (£6.41bn) for 2023 after posting a revenue of €7.60bn in 2022.
For the first quarter of its current financial year, Hellofresh’s revenue grew from €2.016bn (£1.68bn) to €2.073bn.
For its second quarter, its revenue also rose from €1.91bn (£1.60bn) to €1.95bn.