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HelloFresh Shares At Record High On Virus Sales Boost

By Dayeeta Das
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HelloFresh Shares At Record High On Virus Sales Boost

Shares in meal-kit delivery firm HelloFresh jumped to a record high on Tuesday after it said it expected strong first-quarter sales and profit due to a surge in demand as coronavirus lockdowns prompt more people to cook at home.

HelloFresh shares were up 14.2% at 07:25 GMT, making them the biggest gainer on the German mid-cap index.

The company, which delivers pre-portioned meal ingredients with recipes to subscribers, has grown rapidly in the United States, outperforming rival Blue Apron, which has also reported a sharp increase in demand due to the coronavirus.

Forecast

Berlin-based HelloFresh, which makes more than half of its sales in the United States, said late on Monday it expects quarterly revenue of between €685 million and €710 million ($755-783 million), while adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) should come in at €55 - €75 million.

Deutsche Bank said that implied revenue growth of up to 69% year-on-year for the quarter, which it said would be the strongest rise for HelloFresh in more than three years.

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HelloFresh said uncertainties created by the pandemic meant it was not amending the guidance it gave earlier in the month for 2020 revenue growth of 22% to 27% on a constant currency basis and an adjusted margin of 4-5.5%.

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