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Earnings

HelloFresh reports strong demand due to coronavirus lockdowns

BERLIN (Reuters) - Meal-kit delivery firm HelloFresh HFGG.DE said on Tuesday it expected its first-quarter sales and profits to beat market expectations due to increased demand as coronavirus lockdowns prompt more people to cook at home.

Berlin-based HelloFresh, which makes more than half of its sales in the United States, said it expects quarterly revenue of between 685 million and 710 million euros ($755-783 million), while adjusted earnings before interest, taxation, depreciation and amortization (EBITDA) should come in at 55-75 million euros.

However, it said uncertainties created by the pandemic meant it was not amending the guidance it gave earlier in the month for 2020 revenue growth of 22% to 27% on a constant currency basis and an adjusted margin of 4-5.5%.

HelloFresh is due to publish first-quarter results on May 5.

The company, which delivers pre-portioned meal ingredients with recipes to subscribers, has grown rapidly in the United States, outperforming rival Blue Apron APRN.N, which has also reported a sharp increase in demand due to the coronavirus.

Reporting by Emma Thomasson; Editing by Nick Tattersall

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