{
  "id": 18265545,
  "title": "HelloFresh Q3 core profit tops forecasts as marketing cuts hit orders",
  "url": "https://urgent.news/2026/11/05/hellofresh-q3-core-profit-tops-forecasts-as-marketing-cuts-hit-orders",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-11-05T06:33:11.000Z",
  "source": {
    "name": "Investing.com",
    "slug": "investing-com",
    "url": "https://www.investing.com/news/earnings/hellofresh-q3-core-profit-tops-forecasts-as-marketing-cuts-hit-orders-5002319"
  },
  "original_language": "en",
  "account": "HelloFresh reported a stronger-than-expected third-quarter core profit on Thursday, driven by a significant reduction in marketing expenditure, despite a sharp decline in orders. Adjusted EBITDA, the company's core profit measure, was €54.4 million, surpassing the average analyst forecast of €49 million. Adjusted EBITDA in constant currency stood at €50.9 million, representing a 26.3% increase from the previous year's €40.3 million.\n\nThe company's marketing spend declined by 24.1% from a year earlier, impacting orders, which fell by 17.9% to 19.6 million. The slowdown in new customer acquisition during the back-to-school period, particularly blamed on reduced marketing efforts, contributed to the decline. However, an increased average order value, up 7.5% at constant currency to €70.5, offset the volume drop. This rise was attributed to selective price increases, more add-on purchases, and a higher share of premium recipes.\n\nDespite the overall decline in revenue to €1.43 billion, which was slightly below the forecasted €1.42 billion, at constant currency it fell to €1.40 billion, down 11.3% from the previous year's €1.58 billion. The contribution margin, excluding share-based pay and impairments, was €331.6 million, slightly below the average forecast of €346.9 million. This was equivalent to 23.3% of revenue, down from 24.5% a year earlier.\n\nMeal kit revenue dropped by 13.1% at constant currency, but its adjusted EBITDA margin improved to 10.7% from 9.4% a year earlier. Ready-to-eat revenue fell by 11.1% at constant currency, with the unit breaching even on adjusted EBITDA, marking a contrast to the €21.6 million loss reported a year ago. The company credited lower marketing costs, efficiency savings, and higher order values for the improved profit.\n\nCEO Dominik Richter outlined the company's priorities for 2026, aiming for a double-digit margin in meal kits and a return to adjusted EBITDA profit for ready-to-eat. While initial metrics and feedback were encouraging, Richter emphasized the need to address temporary operational inefficiencies before reinvesting in growth. The company's free cash outflow narrowed to €5.7 million from €80.7 million a year earlier, reflecting higher adjusted EBITDA, lower lease repayments, and reduced capital expenditure. For 2026, the company anticipates revenue to decline by 9% to 11% and adjusted EBITDA to range between €350 million and €370 million at constant currency.",
  "summary": null,
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}