Adjusted earnings lower than expected, revenue growth weakened
- HelloFresh shares plunge 21% after profit warning
- Adjusted earnings for 2023 expected to be lower than previously anticipated
- Weaker revenue growth in North America and higher costs cited as reasons
- Slower start to ready-to-eat production capacity impacted customer numbers and revenue
- Adjusted earnings before interest, taxes, depreciation and amortization expected to be between 430 million and 470 million euros
- Revenue growth forecast for 2023 lowered to 2% to 5%
- Temporary issues largely solved, but may still impact HelloFresh shares
HelloFresh shares have experienced a significant drop of 21% following a profit warning. The company announced that adjusted earnings for 2023 would be lower than previously anticipated due to weaker revenue growth in North America and higher costs. HelloFresh attributed these challenges to a slower start in its ready-to-eat production capacity, which affected customer numbers and revenue. As a result, adjusted earnings before interest, taxes, depreciation and amortization for this year are now expected to be between 430 million and 470 million euros, below the previous guidance of 470 million to 540 million euros. Additionally, revenue growth forecast for 2023 has been lowered to 2% to 5%. While the issues are considered temporary and have been largely resolved, the news is likely to impact HelloFresh shares.
Factuality Level: 8
Factuality Justification: The article provides specific information about HelloFresh’s adjusted earnings for 2023, the reasons for the lower earnings, and the impact on the company’s shares. The information is based on statements from HelloFresh and analysts’ notes, which adds credibility to the article. However, it is important to note that the article does not provide any counterarguments or perspectives from other sources.
Noise Level: 7
Noise Justification: The article provides relevant information about HelloFresh’s lower adjusted earnings for 2023 due to weaker revenue growth and higher costs. It includes details about the reasons behind the lower earnings and the impact on the company’s outlook. However, the article lacks in-depth analysis, scientific rigor, and actionable insights. It mainly reports the facts without exploring the consequences or providing solutions.
Financial Relevance: Yes
Financial Markets Impacted: HelloFresh shares
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Rating Justification: The article pertains to financial topics as it discusses the impact of lower revenue growth and higher costs on HelloFresh’s adjusted earnings for 2023. However, there is no mention of an extreme event.
Public Companies: HelloFresh (N/A)
Key People:
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