Is the Covid love affair with home-delivered food parcels finally over? That might be slightly overstating things. But, given the performance of HelloFresh, there is certainly cause for concern - particularly emanating from the other side of the Pond.
Shares in the group fell 20% in early Frankfurt trade after the company lowered its annual core profit outlook and revised its revenue growth guidance.
The German meal-kit maker's North American unit experienced slower sales growth and higher costs in the final quarter.
Key issues included limited customer growth in the US, operational challenges at its Arizona facility due to water and staff shortages, and extended maintenance at its Illinois site.
Although these issues are largely resolved, and not expected to affect 2024 results, the situation has led to a revised forecast.
HelloFresh now anticipates an adjusted EBITDA of €430 million to €470 million for the year, down from the previous estimate of €470 million to €540 million.
The company also adjusted its annual revenue growth projection, now expecting a 2% to 5% increase, compared to the previously forecasted 2% to 8%. This revision follows a recent confirmation of annual guidance in October, despite lower third-quarter core earnings and a decline in customer numbers.
At 9.21 am, the stock was changing hands for €16.32, down €4.18.