FRANKFURT (Dow Jones)–Hellofresh has lowered the target range for adjusted operating profit (EBITDA) and cut the upper end of the target range for sales. The reason was temporary burdens in the North America segment in the final quarter. The forecast for 2024 is not affected because the effects are “mainly temporary”.
As the Berlin meal kit retailer announced, it now expects adjusted operating profit before interest, taxes, depreciation and amortization (adjusted EBITDA, or AEBITDA) for the year as a whole to be between 430 and 470 million euros instead of 470 to 540 million.
Sales in 2023 are now expected to grow by 2 to 5 percent compared to the previous year, adjusted for currency effects, instead of 2 to 8 percent, as the MDAX group announced.
To date, analysts had expected adjusted EBITDA of around 495 million euros (arithmetic mean), according to Hellofresh.
The reason for the lower sales growth and higher expenses in the North America segment is the weaker than expected new customer acquisitions “in certain key weeks” of the final quarter and a slower ramp-up of production capacities for ready meals than planned. There were temporary bottlenecks in water supply and personnel in the new production facility in Arizona, and capacity bottlenecks in the existing production facility in Illinois because maintenance work took longer than expected.
According to the company, the International segment developed as planned in the quarter.
Contact the author: [email protected]; @UlrikeDauer_
DJG/uxd/brb
(END) Dow Jones Newswires
November 15, 2023 12:27 ET (17:27 GMT)
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