Delivery Hero says it hit 2023 sales growth targets in early results after 26% stock plunge

Delivery Hero says it hit 2023 sales growth targets in early results after 26% stock plunge


Delivery Hero CEO Niklas Östberg talking on the Noah tech convention in Berlin on June 13, 2019.

Krisztian Bocsi | Bloomberg by way of Getty Images

Delivery Hero revealed preliminary monetary results on Monday, per week sooner than deliberate, that confirmed the corporate grew sales in line with its steering final 12 months and is forecasting stronger profitability in 2024.

The results, that are unaudited and primarily based on preliminary info, are being launched by the corporate early in a bid to push again on investor flight final week over the meals supply big’s asset sales technique.

Here’s how the corporate did:

Revenue: 10.5 billion euros ($11.3 billion) in annual 2023 revenues, versus 10 billion euros anticipated by analysts, in accordance with LSEG information

Adjusted EBITDA (earnings earlier than curiosity, tax, depreciation, and amortization): Delivery Hero says adjusted EBITDA “exceeded” 250 million euros ($269.4 million). Analysts had forecast adjusted EBITDA of 254.3 million euros, per LSEG

Delivery Hero mentioned group GMV (gross merchandise worth), which is the mixed worth of general orders on its platforms, grew 6.7% year-over-year to 12.3 billion euros in the fourth quarter of 2023, and by 6.8% to 47.6 billion euros in full-year 2023.

Total section income elevated 15.7% to three billion in the fourth quarter. Full-year sales got here in at 11.1 billion euros for the complete 12 months, up 15.7% year-on-year.

That matches firm steering for “round 15% YoY [year-over-year]” growth in 2023.

Adjusted EBITDA, which is Delivery Hero’s measure of profitability, totaled greater than 250 million euros in full-year 2023, Delivery Hero mentioned, and the corporate reported adjusted EBITDA margin of 0.6%.

Delivery Hero mentioned the results had been pushed by wholesome order growth in a lot of its geographies.

Most notably, Delivery Hero additionally gave some rosy steering for 2024, with the supply firm forecasting group GMV growth of 7-9% for the 12 months, greater than its efficiency in 2023.

Delivery Hero mentioned it expects section income growth of between 15% and 17% in full-year 2024, and an adjusted EBITDA of 725 million to 775 million euros.

The firm can also be forecasting optimistic free money stream for the 12 months.

Delivery Hero mentioned it would publish extra preliminary numbers for the fourth quarter in a buying and selling replace slated for Feb. 14, when it was initially as a result of report numbers.

It comes after Delivery Hero shares misplaced greater than 26% of their worth final week, slipping to their lowest value since 2022, as traders reacted to a mixture of information surrounding portfolio asset sales.

On Tuesday, Delivery Hero mentioned it would promote all of its 4.5% stake in British meals supply agency Deliveroo for £76.8 million ($97 million), a price far decrease than the value it paid for the shares in 2021.

Then, on Friday, Delivery Hero shares sank sharply after a report mentioned the corporate had ended discussions to promote sure property inside its Southeast Asian meals supply enterprise Foodpanda to Singapore’s Grab.

Delivery Hero denied the report, placing out an announcement saying that any rumors that negotiations for the potential sale of the Foodpanda property had collapsed had been “false,” and that talks are ongoing.

Delivery Hero is likely one of the largest meals supply companies globally with extra 2.2 billion customers.

It competes with the likes of American big DoorDash, Britain’s Deliveroo, Anglo-Dutch agency Just Eat Takeaway.com, Singaporean firm Grab, and Indonesia-based Gojek.



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