HelloFresh Shares Jump On Stronger Than Expected 2019
Shares in HelloFresh jumped 13% on Thursday after the German meal-kit delivery company said it expects to beat its guidance for sales and profits for 2019.
The Berlin-based company said late on Wednesday it expects 2019 revenue to rise about 36% on a constant currency basis, ahead of its previous guidance of 31-33% due to a better-than-expected fourth quarter.
Rapid Growth In The US
Founded in 2011, HelloFresh has grown rapidly in the US market, outperforming rival Blue Apron, which reported a fall in quarterly orders, revenue and a wider-than-expected loss in October as competition mounts in the meal kit business.
HelloFresh said the United States should contribute €1.024 billion - €1.026 billion ($1.14 billion) to annual sales and its other 11 markets - including Britain, Germany, Australia and Canada - up to €785 million.
The food delivery company, which listed in November 2017, said it expects its adjusted earnings before interest, taxes, depreciation and amortisation (AEBITDA) to come in between €45 million and €48 million ($50.16 million - $53.50 million), its first annual profit.