HelloFresh saw its US shares fell on Wednesday after the German meal kit company slashed its full-year sales and profit guidance on sales weakness and higher-than-anticipated costs in its North America segment.
It now expects revenue growth between 2% and 5% over 2022 and adjusted earnings before interest, taxes, deprecation and amortization (EBITDA) in the range of €430 million and €470 million.
The company had previously guided revenue growth between 2% and 8% and adjusted EBITDA between €470 million and €540 million.
HelloFresh said its lowered revenue expectation is the result of fewer new customer acquisitions of its US meal kit brand versus expectations in certain key weeks of the fourth quarter.
It also pointed to a slower-than-planned ramp-up of its ready-to-eat production capacity. The company said it has experienced delays in the ramp-up of its new Arizona ready-to-eat facility due to temporary water and staff shortages.
Its ready-to-eat production site in Illinois was also impacted by longer-than-anticipated maintenance work.
The company stated that these effects were seen as temporary and that it does not expect them to have a meaningful impact on its outlook for fiscal 2024.
HelloFresh shares traded down 6.9% at US$20.49 over the counter on Wednesday afternoon.
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