HelloFresh issued a profit warning as demand falls

Source: Mintel 18-03-2024

HelloFresh reported a slight decline in sales reaching €7.5 billion for its FY2023 results with its adjusted EBITDA falling 6.3% to €447.6 million. The meal delivery service saw its active number of customers fall from 7.1 million to 6.6 million. Alongside falling customer numbers, HelloFresh saw its number of orders falling for several consecutive quarters, but until now was able to compensate for that with price increases.

The meal delivery service has issued a profit warning as it faces higher costs as it spends more on marketing to counter customer outflow. HelloFresh is investing heavily in its freshly prepared meals division, Factor, intending to launch it in the Nordic countries. All these factors will weigh on profits this year as HelloFresh expects to be between €350 and €400 million while it expects sales to rise again between 2% and 8%.