Adjusted Profit Projections Decreased by Hellofresh
HelloFresh Lowers Profit Forecast Due to Currency Headwinds
Meal kit provider HelloFresh has revised its profit forecast for the current fiscal year 2025, citing unfavourable exchange rates as the main reason. The company initially predicted an adjusted operating earnings (AEBITDA) of between €450–500 million, but has now adjusted this range to €415–465 million[1][4][5].
The depreciation of the US Dollar, Canadian Dollar, and Australian Dollar against the euro has been the primary factor behind this downgrade. The euro's strength in these key markets—United States, Canada, and Australia—has diminished euro-denominated earnings realized abroad, creating a currency headwind that reduces reported profits and tightens the revenue outlook[1][3].
However, despite this currency-related profit forecast downgrade, HelloFresh’s operational performance remains slightly better than initially anticipated, thanks to an efficiency program that keeps profit margins stable[1]. The currency impact has particularly pressured revenue, with the company adjusting its expected currency-adjusted revenue decline to 6–8% for 2025 (previously 3–8%)[1][3].
In a positive note, the growth in the ready meals segment is expected to pick up again towards the end of the fiscal year through the "ReFresh" investment program[6]. Furthermore, the company has announced that it will repurchase up to an additional 100 million euros of its own shares, extending the duration of the share repurchase program to at least the end of 2026 due to its success[2][7].
The original volume of 75 million euros of the program will be reached shortly, and the total volume of the share repurchase program will increase to up to 175 million euros[2][7]. The adjustments to the revenue and share repurchase program are not related to the unfavorable exchange rates mentioned earlier[8].
The news was announced by HelloFresh on Wednesday, and the company's adjusted operating result (AEBITDA) is now expected to be between €415 and €465 million[3][4][5]. Despite the lowered profit forecast, the operating business is running better than originally thought[9]. The margins for HelloFresh remain unchanged[10].
[1] - Reuters [2] - Financial Times [3] - Bloomberg [4] - MarketScreener [5] - Yahoo Finance [6] - Seeking Alpha [7] - CNBC [8] - Business Insider [9] - The Street [10] - The Motley Fool
In the revised profit forecast for fiscal year 2025, exchange rates have been identified as a significant factor forHelloFresh, leading to a decrease in expected profits. The company's adjusted operating earnings (AEBITDA) is now expected to be between €415–465 million, a downgrade from the initial €450–500 million range. Despite the currency-related profit forecast downgrade, the operational performance of HelloFresh and its profit margins remain stable, and the company's financial business is running better than originally thought.
