Tear Sheet: HelloFresh

HelloFresh now expects revenue growth of 2%-5%, from 2%-8% previously, and EBITDA of €430 million-€470 million, down from its previous expectation of €470 million-€540 million. The ramp-up of the ready-to-eat segment was hampered by a delayed water permit and temporary staffing challenges, while the Illinois facility could not fill the production gap due to maintenance work taking longer than planned. Consumer sentiment has softened in the U.S. mainly due to higher interest rates and ongoing inflation, leading to lower-than-expected new customers in the group?s meal-kit segment in North America. Revenues on a constant currency basis grew by 2.5%, while on a reported basis they stagnated at €5,738 million, reflecting 0.1% growth year-on-year during the first nine months of 2023. In

...November 23, 2023 HelloFresh will underperform our initial forecast for 2023, due to the slower ramp-up of the ready-to-eat segment and a weaker customer conversion, marginally narrowing its headroom under our current '###-' rating. HelloFresh now expects revenue growth of 2%-5%, from 2%- 8% previously, and EBITDA of 430 million-470 million, down from its previous expectation of 470 million-540 million. HelloFresh could not meet customer demand for its ready-to-eat segment in North America because one-off challenges, now resolved, constrained production. The ramp-up of the ready-to-eat segment was hampered by a delayed water permit and temporary staffing challenges, while the Illinois facility could not fill the production gap due to maintenance work taking longer than planned. The International segment has performed in line with expectations, showing HelloFresh's resilience even in an environment of slower growth or a mild recession. Consumer sentiment has softened in the U.S. mainly due...

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