The meal kit delivery company HelloFresh expanded its loss in the third quarter of the 2024 fiscal year to 33.3 million euros compared to the same period last year. This corresponds to a loss of 0.20 euros per share, about three times higher than the 11.1 million euros in the prior year's quarter and significantly above analysts' estimates of -0.077 euros.

While the revenue of 1.83 billion euros slightly exceeded the expected 1.88 billion euros and increased by 8% year-over-year to 7.847 billion USD, the comparable revenue in the third quarter decreased by 1.5%. This development is mainly due to weak business in China, France, and the United Kingdom, while the domestic market recorded a slight revenue increase.

Despite the increased loss, the company is making efforts to improve profitability. HelloFresh is currently establishing a second foothold in the ready-to-eat meal segment (RTE) and plans to significantly reduce marketing expenses in the fourth quarter. These measures are expected to result in lower full-year revenue but lead to higher operating profit (EBITDA) and an improved margin. In the third quarter, the adjusted EBITDA margin improved from 3.8% in the previous year to 3.9%, while the adjusted EBITDA rose to 72.1 million euros.

The positive operating figures could not compensate for the heavy loss, leading to a disappointed reaction from investors. In after-hours trading on XETRA, HelloFresh shares temporarily fell by 4.27% to 10.09 euros.

The US analysis firm Bernstein Research has maintained the rating for HelloFresh at "Market-Perform" and left the price target unchanged at 7.20 euros. Analyst Simon Baker emphasized that the results underline the company's new focus on profitability, even though the revenue forecast for the final quarter was disappointing.