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HelloFresh shares plummet after earnings forecast cut

EditorNikhilesh Pawar
Published 2023/11/16, 17:20
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FRANKFURT - HelloFresh (OTC:HLFFF) SE saw its stock value sharply decline today, following an announcement of a reduced earnings forecast for 2023. The meal-kit company's shares dropped by 21% at 0837 GMT today amid investor concerns over its financial outlook.

The downward revision is primarily due to slower revenue growth in North America and increasing operational costs. HelloFresh has been facing challenges with the launch of its ready-to-eat production capacity since the last quarter, which has adversely affected customer acquisition and revenue, while simultaneously raising expenses.

In response to these challenges, HelloFresh has adjusted its EBITDA expectations for the year from the previously projected range of €470 million to €540 million down to €430 million to €470 million. Furthermore, the company has also narrowed its constant currency revenue growth forecast for 2023, from an initial range of 2% to 8%, now setting it at 2% to 5%.

Despite the current financial headwinds and the substantial drop in share price today, HelloFresh remains optimistic about its performance in the coming year. The company does not anticipate these issues to significantly impact its 2024 outlook. Analysts have noted that while the recent developments are likely to put pressure on HelloFresh's market valuation in the short term, they view the problems as temporary and largely resolvable.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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