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HelloFresh sees 2023 core profit of 460-540 million euros

by Staff GBAF Publications Ltd
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(Reuters) – German meal-kit maker HelloFresh forecast a higher 2023 core profit on Tuesday, as it focuses on strengthening its customer offer despite cost pressures.

It sees adjusted core profit (AEBITDA) of between 460 million and 540 million euros ($491.60 million-577.10 million) in 2023.

The guidance midpoint of 500 million euros compares with AEBITDA of 477.4 million euros HelloFresh reported for 2022.

Analysts’ had estimated AEBITDA of 464.5 million euros for the last year.

HelloFresh, like other former pandemic-era darlings in the sector, is facing higher marketing costs as it seeks to retain customers amid reopening economies and weakening consumer spending.

Chief Executive Dominik Richter said in a statement that better choices for customers and more meal solutions will boost the profitability of the meal kit business.

The Berlin-based firm expects its revenue to grow 2% to 10% on a constant currency basis in the current year, compared with constant currency growth of 18% in 2022.

In absolute values, revenue rose to 7.61 billion euros in the last year, from 5.99 billion euros a year earlier.

($1 = 0.9357 euros)

 

(Reporting by Linda Pasquini and Ozan Ergenay; Editing by Muralikumar Anantharaman)