German meal-kit maker HelloFresh HFGG.DE has reduced its 2022 outlook, saying inflation, waning consumer confidence and the Ukraine war would weigh on earnings in the second half, sending its shares into a double-digit tumble.
The company reduced its revenue growth outlook for the year on a constant currency basis to between 18% and 23% from a previously forecast range of between 20% and 26%.
HelloFresh also reduced its outlook for adjusted EBITDA to between €460 million and €530 million from a previously forecast range of €500 million to €580 million, it said.
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Shares fell more than 12% after the announcement, making HelloFresh by far the biggest loser on Germany's DAX .GDAXI on Wednesday 20 July.
The company said that it did better than expected in the second quarter, reporting an adjusted EBITDA of between €140 million and €150 million, versus analysts' expectations of €133 million, based on preliminary indications.
HelloFresh, which delivers boxes with ingredients and recipes directly to consumers' doors, was one of the companies that especially benefited from pandemic-related lockdowns.
In a sign that the pandemic bump is over and consumers must now contend with rising inflation, HelloFresh's British peer Deliveroo ROO.L also recently cut its forecast.
HelloFresh will publish its final figures on 15 August.