HelloFresh stock has already been one of the biggest losers in the MDAX index in recent months. After the surprising profit warning in November, in which the meal kit delivery company cut its targets for 2023, the stock has already dropped more than 20 percent.

But today’s drop in the stock price is even more extreme: HelloFresh has presented preliminary figures for the 2023 financial year and has also given an outlook for the current year and beyond. Once again, the company had to revise its targets. The HelloFresh stock dropped more than 40 (!) percent at the start of trading (as of March 8, 2024, around 9:30 am).

HelloFresh drops its mid-term targets The figures for the past financial year were still in line with expectations. Adjusted for currency effects, revenue increased by 2.8 percent to around 7.6 billion euros and EBITDA decreased slightly from the previous year to 448 million euros. Both figures were in the mid-range of the reduced forecast range in November.

However, the outlook for the current year 2024 was disappointing: HelloFresh expects revenue growth of 2 to 8 percent, adjusted for currency effects. EBITDA is expected to be between 350 and 400 million euros, which means another decrease. Analysts had expected significantly more.

Fatal for investors: HelloFresh is not able to meet its mid-term targets either. The company previously anticipated revenue of 10 billion euros and EBITDA of 1 billion euros in 2025. Now, achieving these targets is considered unlikely.

HelloFresh stock: Caution is advised On the one hand, HelloFresh remains an exciting company in a dynamic environment. The new concept of „Ready-To-Eat“ could bring the company back on track for growth in the medium term, which HelloFresh has high hopes for. On the other hand, revising the mid-term targets once again leads to a loss of trust and credibility.

Investors usually rely heavily on a forward-thinking management, but now HelloFresh has revised its forecast for the second time in a few months. In the last 6 months, the HelloFresh stock has dropped from around 30 euros to just under 7 euros.

Can it get any worse? Many already thought so after the stock losses of the past months. Investors should be very cautious overall, as a turnaround is possible, but the timing is completely uncertain.

Source: https://aktienscreener.com