November 5, 2019 / 7:29 AM / 12 days ago

UPDATE 1-HelloFresh eyes FY break-even after third-quarter profit

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Nov 5 (Reuters) - Meal-kit delivery company HelloFresh said on Tuesday it was on the path to post its first positive annual adjusted core earnings, as strong growth in both its U.S. and other international businesses led to a third-quarter profit.

The German company’s adjusted earnings before interest, taxes, depreciation and amortization (AEBITDA) for the third quarter came in at 15.5 million euros ($17.25 million), versus a loss of 26 million euros in the year-ago period.

The figure was at the upper end of a forecast range of 13.5 million euros and 15.5 million euros announced by HelloFresh in October.

The result was underpinned by the online food services provider’s U.S. business, which posted positive AEBITDA for the period from a loss a year ago, despite typically slow quarterly seasonality, the company said.

HelloFresh, which first swung to a quarterly profit in August, also saw a jump in the operating profitability of its international segment, with AEBITDA rising to 20.8 million euros from 1.6 million euros a year earlier.

HelloFresh robust results come days after U.S.-based rival Blue Apron reported a fall in quarterly orders, revenue and a wider-than-expected loss.

The food delivery company, which listed in November 2017, said the profitable third quarter paves the way for first full-year AEBITDA breakeven, as it maintained its full-year guidance of a positive AEBITDA margin of 0.50% to 1.75%.

, ($1=0.8988 euros) (Reporting by Linda Pasquini; Editing by Himani Sarkar and Aditya Soni)

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