Shares in HelloFresh fell today after the German firm cut its outlook for the full year, blaming a strengthening euro and a decline in sales at its ready-to-eat business.
The stock has lost 25% of its value since January and almost 90% since its August 2021 peak.
The German meal-kit maker now expects its full year adjusted core profit (AEBITDA) to come between €415-465m, down from a previous range of €450-500m.
In a statement, the firm said this reflects the euro rising more than expected against currencies such as the US dollar and the Canadian dollar compared to when the guidance was first provided earlier this year.
The company makes more than 60% of its sales in North America, which means its revenue loses some of its value when converted into the European currency.
A company compiled poll expects AEBITDA to come at €466m this year.
HelloFresh had seen a change in demand from customers cooking meals from scratch during the Covid-19 pandemic to preferring ready meals they only need to reheat after a day in the office. It responded by producing more ready to eat (RTE) goods.
But, in the RTE business, second quarter revenue fell by almost 6% from a year ago.
The Berlin based company also said it is extending its share buy-back programme by up to €100m to a total of up to €175m and to extend its duration until no later than December, 31 2026.
