HelloFresh SE: HelloFresh SE invests in further growth, raises its revenue outlook and expects to achieve break-even in the course of 2019
HelloFresh SE / Key word(s): Strategic Company Decision/Change in Forecast
Public disclosure of inside information according to Article 17 para. 1 of the Regulation (EU) No 596/2014 on market abuse (market abuse regulation - MAR)
HelloFresh SE invests in further growth, raises its revenue outlook and expects to achieve break-even in the course of 2019
International Securities Identification Number (ISIN): DE000A161408
Berlin, 13 August 2018 - Today HelloFresh SE ("Company"), the world's leading meal kit company, decided - based on the strong margin development in the first half of 2018 - to invest such margin profits in a series of strategic measures during the second half of 2018. The investments primarily include an increase of meal selections in the US, price reductions on certain meal kits offered in the US, the scaling up of a new value brand and product improvements as well as price reductions in the portfolio of the Green Chef Corporation which was acquired by HelloFresh at the end of March. The Management Board of the Company believes that these investments will support further growth.
Due to these additional investments in further growth decided upon today, HelloFresh raises its full-year 2018 outlook for constant-currency revenue growth (excluding Green Chef) from previously 30% - 35% to now 32% - 37%. As a consequence of these additional investments in further growth, which will lead to a reduction of AEBITDA, the Company does no longer expect to achieve a break-even on group level on AEBITDA-basis (excluding Green Chef) in Q4 2018 but currently expects to achieve such break-even on group level on AEBITDA-basis during the course of 2019.
This document contains forward-looking statements relating to the business, financial performance and results of HelloFresh SE (the "Company"), the HelloFresh group or the industry in which the HelloFresh group operates. These statements may be identified by words such as "expect", "belief", "estimate", "plan", "target" or "forecast" and similar expressions, or by their context. Forward-looking statements include statements regarding: strategies, outlook and growth prospects; future plans and potential for future growth; growth for products and services in new markets; industry trends; and the impact of regulatory initiatives. These statements are made on the basis of current knowledge and assumptions and involve risks and uncertainties. Various factors could cause actual future results, performance or events to differ materially from those described in these statements, and neither the Company nor any other person accepts any responsibility for the accuracy of the opinions expressed in this document or the underlying assumptions. No obligation is assumed to update any forward-looking statements. Regarding the definitions of Alternative Performance Measures, the Company refers to the relevant definitions in its Annual Report 2017, which is published on the Company's website.
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