HelloFresh forecasts more growth in 2020
German delivery firm cites US growth as cause for celebration
German meal-kit delivery firm HelloFresh has forecasted revenue and core profit growth in 2020 after successfully expanding in the US and other international markets.
The company which delivers pre-portioned meal ingredients with recipes to its subscribers posted its first annual adjusted core profit in a preliminary report in January.
HelloFresh expects 2020 revenue growth of 22 per cent to 27 per cent on a constant currency basis. It US division accounted for 57 percent of HelloFresh’s annual sales in 2019.
CEO Dominik Richter has maintained that the coronavirus outbreak, which has killed 3,120 and infected 90,933 worldwide, will not pose a major obstacle to the company’s performance in 2020, thanks to its diversified pool of suppliers and minimal exposure to Asia or other at risk areas.
Founded in 2011, HelloFresh has grown quickly in the US, outperforming rival Blue Apron, which recently announced it was considering going private after a fall in full-year revenue.
Shares in HelloFresh rose over 200 per cent in 2019, outperforming Germany’s midcap index seven-fold. Early this morning its stock was up 6.1 per cent, the second biggest rise on Europe’s STOXX 600 index.
The company, which also has a presence in the UK, Australia, Canada and the Netherlands, said the margin on adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) should reach 4.0-5.5 per cent in 2020, up from 2.9 per cent on 2019.
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