HelloFresh shares fell 42% on Friday morning in their worst session yet, after the prescription box delivery company disappointed on its 2024 earnings outlook.
Analysts at UBS said that although they noted risks surrounding HelloFresh's guidance, its forecast, issued after the market closed on Thursday, was “significantly worse” than expected. The disappointing growth and revised earnings outlook suggest high customer acquisition costs “are expected to persist into 2024,” they said in a note.
Meanwhile, Deutsche Bank described the outlook for 2024 as “disappointing” and noted the removal of its previously announced targets for 2025, which the company attributed to a “completely different operating environment.”
The Berlin-based company announced on Thursday He said It expected adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) to reach 448 million euros ($480 million) for fiscal 2023, down from 477 million euros the previous year.
It also revealed that it expects adjusted EBITDA in 2024 to fall to between €350 million and €400 million, despite expectations of higher revenues from the North American market.
The company said that the decrease in profits will be due to increased production capacity, marketing expenses, and the expansion of two new centers to fulfill orders.
It is scheduled to release its annual results on March 15.
HelloFresh listed in Frankfurt in 2017 and has proven to be a clear beneficiary of the pandemic, with shares rising rapidly as investors spied opportunities in technology platforms offering door-to-door services.
But its value has declined since its peak in 2021, with shares falling 70% in 2022, then falling 30% in 2023.
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HelloFresh stock price
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