Shares of HelloFresh (HLFFF) are down 43% after the food delivery company issued a warning about its 2024 earnings.
The Berlin, Germany-based company said that it expects earnings of 448 million euros ($480 million U.S.) this year, down 6% from 477 million euros the year before.
HelloFresh blamed the lower earnings on increased production capacity and marketing expenses, as well as costs associated with bringing two new fulfillment centres online.
The earnings warning was issued ahead of the company’s next financial results, which are due to be released on March 15.
In a note to clients, Swiss bank UBS (UBS) called the new guidance from HelloFresh “far worse” than expected.
HelloFresh went public in 2017 and benefitted from the pandemic when its food deliveries to people’s homes spiked. However, the company has struggled in recent years as people returned to in-person shopping.
Including the latest drop, HelloFresh’s stock has now declined 65% in the last 12 months to trade at 6.82 euros ($7.45 U.S.) per share.
