HelloFresh’s shares slid on Tuesday after the German meal-kit company reported higher-than-expected second-quarter revenue but issued a weaker-than-anticipated full-year outlook, citing rising operational costs and a slowdown in demand.
The Berlin-based group said revenue rose 1.7% year-over-year to €1.53 billion ($1.68 billion), beating market expectations of €1.51 billion. However, adjusted EBITDA fell 28% to €121 million, as the company grappled with inflation-driven cost pressures and softer consumer demand in key markets such as the U.S. and Europe.
HelloFresh also lowered its full-year guidance, now projecting adjusted EBITDA between €500 million and €550 million, down from a prior range of €550 million to €600 million. The company attributed the revision to higher-than-expected logistics and fulfillment expenses, as well as a slower-than-expected recovery in customer retention rates.
Analysts noted that the guidance cut reflects broader challenges in the meal-kit industry, where companies have struggled to maintain profitability amid rising ingredient and labor costs. Competitors such as Blue Apron and Gousto have also faced similar pressures, though HelloFresh remains the market leader in Europe.
HelloFresh’s stock, which had gained roughly 15% year-to-date prior to Tuesday’s drop, fell as much as 8% in early trading before paring some losses to around 5% by midday. The decline underscored investor concerns over the sustainability of the company’s growth model in a high-cost environment.
A HelloFresh spokesperson declined to comment beyond the company’s earnings statement, which emphasized efforts to optimize supply chains and improve operational efficiency in the second half of the year.
