HelloFresh Reports Weak EBITDA and Margin Despite Revenue Growth

HelloFresh SE encounters challenges with weak adjusted EBITDA and margins, despite reporting higher revenue for the fiscal year 2024. The company aims for a significant increase in AEBIT for fiscal 2025 to enhance performance.

Date: 11-03-2025

AI Rating: 5

Fiscal Year 2024 Performance: HelloFresh SE reported an adjusted EBITDA of 399.4 million euros for the full year 2024, which is lower than 447.6 million euros in the previous year. This decline reflects a decrease in profitability despite achieving higher revenues. The AEBITDA margin fell to 5.2 percent, down from 5.9 percent a year ago.

Revenue Growth: The Group revenue increased slightly to 7.66 billion euros from 7.60 billion euros, indicating a growth of 0.9 percent in constant currency terms. This suggests that while revenue is moving upwards, it may not be sufficient to bolster margins.

AEBITDA Target for 2025: For fiscal 2025, HelloFresh has ambitious goals to elevate AEBIT to between 200 million euros and 250 million euros, which represents an approximate 65 percent increase from the 136 million euros projected for 2024, showing that the company is optimistic about future performance.

Free Cash Flow Focus: The CEO emphasized that achieving strong AEBIT and free cash flow would facilitate strategic investments, likely targeting improved product quality and customer retention.

Efficiency Program: The ongoing comprehensive efficiency program, initiated in the second half of 2024, is an effort to address current setbacks and improve profitability going forward.

Overall, while HelloFresh showcases slight revenue growth, the decline in EBITDA and margins raises concerns among investors. Future projections remain positive but depend heavily on the company’s execution of its strategies in the coming year.

Stocks: HLFFF