By Paolo Laudani
(Reuters) -Shares in Hellofresh fell on Thursday after the German firm cut its outlook for the full year on Wednesday, blaming a strengthening euro and a decline in sales at its ready-to-eat business.
The stock was down 6% in early trade at 0606 GMT, having 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 million euros and 465 million euros ($486 million – $544 million), down from a previous range of 450-500 million euros.
In a statement, the firm said this reflects the euro rising more than expected against currencies such as the U.S. 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 466 million euros 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’s extending its share buy-back program by up to 100 million euros to a total of up to 175 million euros and to extend its duration until no later than December, 31 2026.
($1 = 0.8546 euros)
(Reporting by Paolo Laudani; Editing by Matt Scuffham)
