(Reuters) – HelloFresh reported second-quarter adjusted operating profit that beat expectations on Tuesday, with its meal kit segment growing 45 percent at constant currency.
HelloFresh, which boomed during the COVID-19 pandemic, is now focusing on prepared meals as demand for meal kits continues to decline.
On the Frankfurt Stock Exchange, HelloFresh shares rose 10.37% to 5.96 euros at around 8:20 GMT.
Adjusted earnings before interest, taxes, depreciation and amortization (AEBITDA) fell 23% to 146.4 million euros in the second quarter, but exceeded analysts’ average estimate of 123 million euros.
Although margins improved quarter-on-quarter, they were impacted by expenses related to the start-up phase of some production sites, the group said.
The company faced a non-recurring, non-cash impairment charge of €45 million in the first half, due to a readjustment of its core business in North America.
“As the cooking box category consolidates around a new market size in the short term, we are determined to optimize our cost base and adapt to the new trend,” HelloFresh CEO Dominik Richter said in a statement.
“This includes rationalising capacity, reviewing investment plans and exploiting existing operational sites.”
The company will target high-end customers and reduce price incentives as part of its long-term profitability goal, Dominik Richter added.
Cooking boxes still represent the core business, with a 72% share of turnover for the period from April to June.
(Written by Paolo Laudani and Linda Pasquini, Elena Smirnova, edited by Kate Entringer)
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