Shares in HelloFresh SE gained early Tuesday after the food-delivery company raised full-year guidance and said second-quarter results would beat market expectations partly because of the coronavirus pandemic.
The Berlin-based company said late Monday that it now expects 2020 revenue to grow between 55% and 70% on a constant currency basis, compared with previous guidance for 40%-55% growth. It expects a margin on adjusted earnings before interest, taxes, depreciation and amortization of between 8% and 10%, compared with a forecast made previously for 6%-10%.
At 0739 GMT, shares /zigman2/quotes/203376622/delayed XE:HFG +2.09% traded 3.8% higher at EUR51.30, while most German shares were lower.
Second-quarter results are expected to outperform market expectations, HelloFresh said, partly due to lockdown measures including strict social distancing, which drove demand for food delivery. HelloFresh delivers meal kits to customers on a subscription basis.
Revenue in the second quarter is expected to be between 965 million euros and EUR975 million ($1.09 billion-$1.11 billion) above market expectations of EUR789 million, the company said. In the same period a year earlier, revenue was EUR436.7 million.
Adjusted Ebitda is expected between EUR145 million and EUR155 million, up from EUR18.3 million in the second quarter of last year and well above market expectations of EUR97 million, according to the company.
HelloFresh reports full second-quarter figures on Aug. 11.