Share loses value
Within six months, the shares of the cooking box mail order company have lost 80 percent of their value. Investors have apparently lost confidence in the management.
Decrease in active customers
The cooking box mail order company Hellofresh is struggling with dwindling customer numbers. In the last quarter of last year, the company recorded a 6.5 percent decline in active customers compared to the same period in the previous year, the MDAX-listed company announced. The number of active customers in this context is defined as all those who have ordered at least one Kochbox in the last three months, regardless of whether this was free, at a discount or at full price.
The number of active customers has long been seen by analysts as a parameter for Hellofresh’s growth. However, the company’s managers recently announced that they would be changing this practice. We will no longer publish our active customers on a quarterly basis from the first quarter of 2024,“ said the company’s Chief Financial Officer, Christian Gärtner.
Hello Fresh share absolute underperformer in the MDax
Instead, Hellofresh relies on other growth indicators. Gärtner emphasized that the number of orders, the average order value (AOV) and turnover are „significantly better“ indicators. Last week, Gärtner and CEO Dominik Richter confirmed preliminary figures and withdrew their previous medium-term targets. As a result, the Hellofresh share lost almost half of its value.
Hello Fresh FAQ
What is Hello Fresh?
Hello Fresh is a cooking box mail order company that delivers meal kits with pre-portioned ingredients and recipes directly to customers‘ doorsteps.
Why has Hello Fresh's share value decreased significantly?
Within six months, Hello Fresh shares have lost 80 percent of their value. This decline is attributed to a loss of investor confidence in the management of the company.
How is Hello Fresh's customer base faring?
Hello Fresh has experienced a decrease in active customers, with a 6.5 percent decline in the last quarter of the previous year compared to the same period in the previous year. Active customers are defined as those who have ordered at least one cooking box in the last three months.
Why has the company decided to change its practice of reporting active customers?
Hello Fresh’s management has decided to no longer publish active customer numbers on a quarterly basis starting from the first quarter of 2024. This decision comes amidst a shift in focus towards other growth indicators.
What growth indicators will Hello Fresh now focus on?
Instead of active customer numbers, the Company will prioritize other growth indicators such as the number of orders, average order value (AOV), and turnover. The company believes these metrics provide a more accurate representation of its performance.
What impact did the withdrawal of medium-term targets have on Hello Fresh's share value?
After withdrawing their previous medium-term targets, the share value plummeted by almost half. This decision, made by the company’s Chief Financial Officer and CEO, led to further uncertainty among investors.
