HelloFresh misses fourth quarter core profit expectations

HelloFresh SE reported fourth-quarter core earnings on Wednesday that fell short of market expectations as the company continues to pivot its business model. The Germany-based firm is currently transitioning from its traditional meal-kit service toward a broader ready-to-eat offering. Adjusted core profit (AEBITDA) for the quarter rose 1% to 166 million euros ($192 million), missing the 167.2 million euro average estimate from a company-compiled analyst poll.

This financial update follows a February report indicating lower-than-expected preliminary group revenue for 2025. In response to profitability challenges, the company announced it would cease operations in Italy and Spain, noting that these markets lacked a viable path to long-term profit.

Looking toward 2026, the company expects a further revenue decrease of approximately 3% to 6%. This decline is primarily attributed to ongoing operational and manufacturing bottlenecks in the United States, which have hindered consumer retention within the ready-to-eat segment. For the 2026 financial year, AEBITDA is projected to range between 375 million and 425 million euros in constant currency. Management cited weather disruptions as the main factor behind the anticipated decrease compared to the 2025 fiscal year.