HelloFresh (HELFY) saw a remarkable 13% rise on the Frankfurt stock exchange after announcing its second-quarter results that beat expectations. Despite a 3.1% drop in orders to 28.9 million and a 3.5% drop in meal deliveries to 243.8 million, the company still managed to impress. This was thanks to an impressive 5.4% increase in average order value to €67.10, which more than offset the volume declines. The Berlin-based company highlighted that this was the twelfth consecutive quarter of growth in average order value. This growth was mainly driven by a higher contribution from ready-to-eat products, an increase in premium and customizable meals, and a broader inclusion of market items. In addition, HelloFresh reduced price incentives in several product categories. HelloFresh also took significant steps to improve its production capacity, which however resulted in one-time, non-cash write-downs of €45 million in the first half of 2024, of which €32 million in the second quarter. Despite a 23% year-on-year decline in adjusted EBITDA to €146.4 million, the consensus estimate of €123 million was exceeded. Stocksunder100 see HelloFresh’s Ready-to-Eat (RTE) business performing strongly, now accounting for around a quarter of total group revenue. Free cash flow also remains strong, despite the second quarter historically being a period of lower volume. If you’ve already stocked up big, it may be wise to take a small portion of the profits. However, we believe the stock has even more potential and therefore choose to hold the full position.

Early results from the US election suggest that Donald Trump is likely to become president again, with Republicans also likely to gain majorities in the Senate and House of Representatives. This would give Trump the chance to quickly implement his economic plans, which could affect taxes and tariffs in the United States. This could have consequences for American and European companies. Tax cuts for companies One of the most important changes expected is a reduction in US corporate taxes. Trump wants to reduce the tax rate for companies that produce in the US, possibly even to 15%. This could be an advantage for US companies, especially those with production in the US, as it could bring them extra profits. However, for European companies without production in the US, this could be a disadvantage, as they would be left with higher costs and could become less competitive in the US market. Import duties and what they mean In addition to lower taxes, Trump may want to impose higher import duties on products that come from other countries. This could hit European companies that export their products to the US without having their own factories there. Sectors such as cars, chemicals and technology could be particularly affected, as they often depend on exports to the US. Examples of companies that could be affected are Volkswagen and Siemens, which generate a lot of revenue from the US but export from Europe. If they incur higher costs, it will be more difficult to pass these on without losing market share to American competitors. Sectors at risk of change Here are some sectors that could be most affected by Trump’s policies: Auto Industry European automakers, such as Volkswagen and BMW, that export cars to the US could see higher costs due to import tariffs. This could affect their sales, as higher prices could deter consumers. US automakers could benefit from this. Technology and semiconductors Companies that sell technological components or chips to the US, such as ASML, could become less competitive due to higher import duties. US companies that produce locally would have an advantage here. Chemical Sector Chemical companies, such as BASF, that export products to the US may also face additional costs due to import duties. This could make their products more expensive, which could affect demand for their products. National exposure Countries like Germany and Switzerland have many companies that are dependent on the US market, such as Roche and BMW. If there are changes in US taxes or import duties, this could have a major impact on the profits of these companies. Companies like Ahold Delhaize, which also get a large part of their income from the US, could also be affected. Conclusion Sharesunderonetentje indicates that Trump’s re-election could pose risks for many European companies, especially those without their own production in the US. For sectors such as automotive, technology and chemicals, it is important to be prepared for these changes. Companies could consider organising their production more locally in the US, or adapting their supply chains to avoid higher costs. Although this requires additional investments, it could help to remain more competitive in the US market. In the coming years, many European stocks will probably appear under ten euros if Trump follows through with his plans. And these stocks can also be among the quality companies. No stock is completely safe from the measures that this president wants to put on the agenda. stocksundertentje expects that the hunting ground for attractive stocks under ten euros will now become considerably larger.