HelloFresh has reported higher adjusted profitability in the third quarter, despite continued revenue declines and a drop in customer orders as it prioritises efficiency over growth.

The meal-kit group recorded revenue of approximately €1.4bn (£1.2bn) in the three months to September, down 11.3 per cent year on year on a constant-currency basis.

Sales fell across both of its main divisions, with Meal Kits revenue declining 13.1 per cent and Ready-to-Eat (RTE) sales dropping 11.1 per cent.

The company attributed the performance partly to lower new-customer acquisition during the back-to-school period, following a reduction in marketing expenditure.

Group orders fell 17.9 per cent to 19.6 million during the quarter. However, average order value increased 7.5 per cent on a constant-currency basis to €70.50, reflecting a shift towards higher-value purchases.

Adjusted EBITDA (AEBITDA) increased 26.3 per cent to €50.9m, supported by lower marketing expenditure and operational efficiency measures.

The Meal Kits division delivered an adjusted EBITDA margin of 10.7 per cent, up from 9.4 per cent a year earlier. Meanwhile, Ready-to-Eat returned to break-even at adjusted EBITDA level, compared with a €21.6m loss in the same period last year.

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The improvement reflects HelloFresh’s ongoing efforts to reduce costs and improve profitability following a challenging period for the business. Its strategy has focused on attracting higher-value customers and improving retention rather than pursuing order volumes through increased marketing investment.

The group maintained its revised full-year 2026 outlook, which was downgraded in September after weaker-than-expected customer acquisition during the back-to-school period.

HelloFresh now expects full-year revenue to decline by between 9 per cent and 11 per cent on a constant-currency basis, with adjusted EBITDA forecast at between €350m and €370m.

The revised guidance compares with its previous expectations of a revenue decline of between 3 per cent and 6 per cent and adjusted EBITDA of €375m to €425m.

The company has also been investing in its product offer through its Refresh programme, which aims to improve recipe variety, ingredient quality and customer experience.

The latest results suggest that while HelloFresh continues to face challenges in rebuilding sales growth, its focus on cost control and improving margins is beginning to deliver stronger profitability.

Hear directly from HelloFresh at this month’s Grocery Horizon’s event at Tottenham Stadium. Sarah Mayer, senior director of product & customer for the UK at HelloFresh joins the Visibility in-store and out panel on 18 November. Find out more here.