January 16, 2020 / 9:26 AM / 9 days ago

HelloFresh shares jump on stronger than expected 2019

BERLIN (Reuters) - Shares in HelloFresh (HFGG.DE) jumped 13% on Thursday after the German meal-kit delivery company said it expects to beat its guidance for sales and profits for 2019.

The Berlin-based company said late on Wednesday it expects 2019 revenue to rise about 36% on a constant currency basis, ahead of its previous guidance of 31-33% due to a better-than-expected fourth quarter.

Founded in 2011, HelloFresh has grown rapidly in the U.S. market, outperforming rival Blue Apron (APRN.N), which reported a fall in quarterly orders, revenue and a wider-than-expected loss in October as competition mounts in the meal kit business.

HelloFresh said the United States should contribute 1.024 billion euros-1.026 billion euros (874.10 million pounds) to annual sales and its other 11 markets - including Britain, Germany, Australia and Canada - up to 785 million euros.

The food delivery company, which listed in November 2017, said it expects its adjusted earnings before interest, taxes, depreciation and amortization (AEBITDA) to come in between 45 million euros and 48 million euros ($50.16 million - $53.50 million), its first annual profit.

Reporting by Emma Thomasson, editing by Riham Alkousaa and Emelia Sithole-Matarise

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