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HelloFresh Shares Jump On Stronger Than Expected 2019

Published on Jan 16 2020 11:00 AM in Technology tagged: Germany / USA / HelloFresh / Meal Kit / World News

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.

News by Reuters, edited by ESM. Click subscribe to sign up to ESM: European Supermarket Magazine.

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