U.S. stock futures rise after U.S.-Japan trade deal; Tesla, Alphabet earnings due
Investing.com -- Shares of HelloFresh (ETR:HFGG) rose more than 9% on Tuesday after the meal-kit provider reported first-quarter earnings that topped expectations, with adjusted EBITDA coming in about 36% ahead of the company-compiled consensus.
Analysts at Jefferies said the results indicate that HelloFresh’s cost-efficiency program is progressing as planned, helping to drive improved margins and operational savings even as revenue trends remain uneven.
Revenue in the quarter was slightly above expectations, increasing by 0.7% over consensus. In North America, performance was 1.9% below consensus, while in International, it was 4.7% above expectation.
On a constant currency basis, group revenue declined 8.3% year over year, steeper than the 3.3% decline reported in the fourth quarter and outside the company’s full-year forecast range of a 3% to 8% decline.
The drop was largely driven by the North American business, where revenue contracted 12.9% compared to a 4.2% decline in the prior quarter.
The International division returned to growth, posting a 0.8% year-over-year increase on a constant currency basis, following a 1.6% decline in the previous quarter.
Across product categories, meal kits saw a 14.5% constant currency revenue decline, compared to a 12.5% drop in the fourth quarter.
Ready-to-eat meals rose 8% in constant currency terms, down from 27.4% in the prior quarter. Both figures were in line with the company’s first-quarter guidance, which anticipated mid-teen declines in meal kits and growth below 10% for ready-to-eat offerings.
HelloFresh maintained its full-year 2025 outlook, maintaining guidance for constant currency revenue to decline between 3% and 8%.
The German company also continues to project group adjusted EBITDA between €450 million and €500 million, and adjusted EBIT between €200 million and €250 million.
According to Jefferies, the company pointed to stable or improving order behavior among existing customers.
A decline in group order volume was attributed to reduced new customer acquisitions, though HelloFresh expects growth to recover in the second half of 2025.