Hangry’s revenue triples in 2021, operating margin improves

Hangry, an Indonesia-based operator of cloud kitchens, saw its revenue jump by over 3x in 2021 to US$12.2 million, as per its ACRA filings. It’s similar to the growth that CEO Abraham Viktor implied at last year’s Tech in Asia Conference.

The company was in the red last year with a US$7.8 million loss – an over 50% increase from 2020. But this is common for a startup that has only finished its second year of operations.

That said, Hangry has started to build a cost-efficient business, with its cost of goods sold as well as selling and general expenses growing slower than its revenue. This led to an improvement in its operating margin from -129% to -64%.

Hangry has yet to respond to Tech in Asia’s queries about its financials.

In April, Viktor told Tech in Asia that Hangry sells 1 million portions of products per month. The company expects to reach 3 million portions per month by the end of this year.

If it manages to hit this target, Hangry could see its revenue triple again.

Revenue analysis

Similar to other culinary startups, almost all of Hangry’s revenue comes from the sale of food that it produces. The company currently operates several brands such as Moon Chicken, San Gyu, and Ayam Koplo, which can be ordered through Hangry’s own app or other food delivery services.

A comparison with another cloud kitchen player, India-based Rebel Foods, shows that Hangry has been efficient enough in its operation.

However, some analysts have predicted that the price of fresh produce and meal ingredients may increase due to the recent gas price hike in Indonesia. This could bump up Hangry’s cost of goods for this year.

Expenses analysis

Almost all of Hangry’s expenses more than doubled in 2021 compared to the previous year.

Lead generator fee – which refers to the cost incurred by the company for digital advertising – grew over 2x to US$2.1 million. The firm’s marketing expenses also increased at a similar pace. Another significant cost increment is the revenue-sharing fee that Hangry gave to outlet partners, which widened by 11x last year.

Cash balance