Delivery Hero Publishes Preliminary Financial Results, Exceeding Expectations

Delivery Hero, a leading food delivery giant, released its preliminary financial results earlier than planned in an effort to address investor flight due to its asset sales strategy. The unaudited results demonstrate strong performance and point towards increased profitability in the future.

Key Highlights:

Revenue: The company achieved 10.5 billion euros ($11.3 billion) in annual revenues for 2023, surpassing analysts’ expectations of 10 billion euros.

Adjusted EBITDA (earnings before interest, tax, depreciation, and amortization): Delivery Hero reported adjusted EBITDA of over 250 million euros ($269.4 million) for 2023, exceeding the forecasted 254.3 million euros.

Group GMV (gross merchandise value): Delivery Hero witnessed a 6.7% year-over-year growth to reach 12.3 billion euros in the fourth quarter of 2023, and a total growth of 6.8% to 47.6 billion euros for the full-year 2023.

Total Segment Revenue: The company experienced a 15.7% increase in total segment revenue, with 3 billion euros recorded in the fourth quarter and 11.1 billion euros for the full year.

Guidance for 2024: Delivery Hero projects group GMV growth of 7-9%, segment revenue growth of 15-17%, and an adjusted EBITDA in the range of 725 million to 775 million euros. The company also predicts positive free cash flow for the year.

Delivery Hero attributes its strong performance to healthy order growth across multiple geographies. Additionally, the company aims to rebound from a recent decline in shareholder value by emphasizing its positive outlook for 2024.

Background:

Last week, Delivery Hero shares experienced a significant decrease, reaching their lowest price since 2022. This drop was in response to news related to asset sales within the company’s portfolio. Delivery Hero announced the sale of its entire 4.5% stake in British food delivery firm Deliveroo at a lower value compared to its initial purchase in 2021. Furthermore, reports emerged suggesting the company had halted discussions regarding the sale of specific assets in its Southeast Asian food delivery business Foodpanda to Singapore’s Grab, causing further concern among investors.

However, Delivery Hero responded promptly by releasing its preliminary financial results ahead of schedule to counterbalance the negative sentiment. The company firmly denied rumors of collapsed negotiations and confirmed that talks are ongoing regarding the potential sale of the Foodpanda assets.

Delivery Hero is a global leader in the food delivery industry, serving over 2.2 billion users worldwide. It competes with renowned companies like DoorDash, Deliveroo, Just Eat Takeaway.com, Grab, and Gojek.