Core Viewpoint - The Australian Competition and Consumer Commission (ACCC) has filed a lawsuit against HelloFresh and Youfoodz for misleading customers regarding subscription cancellation terms [1] Alleged Misrepresentation of Subscription Cancellation - ACCC claims both companies violated Australian consumer law by falsely advertising that new customers could cancel subscriptions without charges, while many still faced fees despite timely cancellations [2][6] - HelloFresh and Youfoodz are subsidiaries of Germany-based HelloFresh SE, with HelloFresh providing weekly meal kits and Youfoodz offering pre-made meals [2] Charges Despite Cancellation - Alleged violations for HelloFresh occurred from January 1, 2023, to March 14, 2025, affecting 62,061 customers, while Youfoodz's violations spanned from October 1, 2022, to November 22, 2024, impacting 39,408 customers [4][7] - HelloFresh required payment details to access the menu but charged customers despite assurances that they wouldn't be charged unless meals were selected [4] - Youfoodz misled customers about cancellation, stating that their first delivery was cancelled and they wouldn't be charged, which was not the case [4] Investigation and Public Concern - ACCC began investigating these allegations in October 2024 after receiving numerous consumer complaints [5] - ACCC commissioner Luke Woodward highlighted the public concern regarding confusing subscription cancellation policies and stated that enforcement action would be taken if violations and consumer harm were evident [5][8]

Core Insights - Goodfood Market Corp. reported financial results for the 13 weeks and 52 weeks ended September 6, 2025, highlighting challenges in the macro environment and consumer discretionary spending, yet demonstrating resilience with a gross margin of 42% and positive Adjusted EBITDA [2][6][25]. Financial Performance - For the fiscal year 2025, net sales decreased by 21% to CAD 120.9 million from CAD 152.8 million in 2024 [6][10]. - In the fourth quarter, net sales were CAD 25 million, with a gross profit of CAD 10 million and a gross margin of 40.3% [7][12]. - The company reported a net loss of CAD 4 million in the fourth quarter, with an adjusted EBITDA margin of 1.7% [7][16]. Cost Structure and Operational Review - The cost of goods sold decreased by 22% to CAD 70.5 million in fiscal 2025, contributing to a gross profit decline of 20% [8][11]. - Selling, general, and administrative expenses were reduced by 17% to CAD 45.4 million, although as a percentage of net sales, these expenses increased from 35.9% to 37.5% [8][11]. - The company is focusing on refining its product lineup and tightening costs to enhance operational flexibility and margin resilience [3][4]. Cash Flow and Capital Structure - Adjusted free cash flow for the fourth quarter was CAD 1.7 million, a significant improvement from a negative CAD 1.1 million in the same period last year [20][21]. - Total net debt increased to CAD 25.1 million, with a total net debt to adjusted EBITDA ratio of 4.12, up from 2.49 in the previous year [23][24]. Strategic Initiatives and Market Position - Goodfood is positioning itself to operate profitably without relying on macroeconomic recovery, focusing on new product offerings like Heat & Eat and Genuine Tea [4][25]. - The company aims to enhance its sustainability initiatives and has received B Corp certification, reflecting its commitment to environmental and social responsibility [28][39]. - Goodfood is exploring acquisitions to strengthen its platform, with Genuine Tea being the first acquisition completed in late 2024 [25][29].

HelloFresh is investing $70 million to enhance meal kits, bringing more filet mignon and seafood to customers https://t.co/YCXDUYHxwp ...