HelloFresh, the German meal-kit maker, has announced that it has narrowed its guidance ranges for 2023. This comes after the company reported higher-than-expected adjusted earnings for the second quarter, but missed market revenue views due to higher margins and delays in advertising spending.
Second Quarter Performance
HelloFresh expects its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) for the second quarter to range between 185 million euros and 195 million euros ($207.3 million-$218.5 million). This exceeds the consensus estimate of EUR145 million provided by the company. In the same quarter of 2022, HelloFresh's adjusted EBITDA was EUR146 million.
Revenue for the second quarter is expected to reach around EUR1.92 billion, slightly lower than analysts' expectations of EUR1.94 billion according to a company-provided consensus. In the same period last year, HelloFresh generated revenue of EUR1.96 billion.
The company attributes its strong adjusted EBITDA performance in the second quarter to lower marketing spend and higher average order values. However, HelloFresh plans to increase its spending again in the third and fourth quarters.
Revised Guidance for 2023
For the full year of 2023, HelloFresh now expects revenue growth at constant currency to range between 2% and 8%, compared to its previous guidance range of 2%-10%. The company anticipates adjusted EBITDA to range between EUR470 million and EUR540 million, compared to its previous forecast of EUR460 million to EUR540 million.
Consensus expectations for full-year adjusted EBITDA currently stand at EUR489 million.
HelloFresh acknowledges that while it exceeded market expectations for adjusted earnings in the second quarter, it fell short on revenue due to higher margins and delayed advertising spending. The company remains optimistic about its future performance and is adjusting its guidance accordingly.
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