HelloFresh reports 42.7% drop in Q2 profit to 2.5 million euros

HelloFresh SE reported a significant decline in its second quarter profit, earning just 2.5 million euros compared to 13.3 million euros during the same period last year. The company’s profit per share also dropped to 0.02 euros from 0.08 euros. Adjusted earnings before interest and taxes (AEBIT) fell 42.7% to 58.1 million euros, down from 101.4 million euros the previous year. Additionally, earnings before interest, taxes, depreciation, and amortization (AEBITDA) decreased to 120.6 million euros, down from 158.5 million euros.

This downturn comes as HelloFresh grapples with a challenging market environment. The company has faced a decline in revenue, which totaled approximately 1.5 billion euros for the quarter, a 7.8% drop in constant currency compared to 1.7 billion euros last year. The Meal Kits segment saw an 8.9% decline, while the Ready-to-Eat segment experienced an 8.4% decrease in constant currency. These declines reflect broader trends in consumer behavior as people adjust their spending habits post-pandemic.

Despite the disappointing results, HelloFresh has reaffirmed its long-term outlook, projecting a constant currency AEBITDA between 375 million euros and 425 million euros for 2026. However, the company indicated that its revenue performance is trending toward the lower end of this range, with earlier forecasts suggesting a potential 3% to 6% decrease in constant currency revenue.

Following the earnings report, HelloFresh shares traded at 3.44 euros, down 0.84% on the Deutsche Boerse Xetra. Investors are closely watching how the company will adapt to the current market challenges and whether it can regain its footing in the competitive meal delivery sector. The next quarter will be crucial for HelloFresh as it seeks to improve its financial performance and restore investor confidence.