Delivery Hero: announces positive H1-2023 financial results

Berlin / DE. (dhh) Delivery Hero Holding S.E. published its financial results for H1-2023. The Group confirms that it has reached several major milestones on its path to profitability as it releases its Q2-2023 Trading Update. Most significantly, the Group achieved positive adjusted Ebitda in H1-2023, with a positive Ebitda/GMV margin of 0.2 percent in Q2-2023 after group cost allocation. Overall GMV growth accelerated to 8 percent YoY, exceeding original expectations of 4 percent YoY, and the Group GMV outside of Asia recorded double-digit growth of 18 percent YoY. The Asia segment also returned to positive GMV growth at 2 percent YoY, despite tough comparable numbers. Total Segment Revenue growth hit 16 percent YoY. Accordingly, the company has updated its Total Segment Revenue outlook for FY-2023, expecting an increase of around 15 percent YoY (up from around 10 percent YoY in its previous guidance).

CEO and Co-Founder Niklas Östberg: «Our team has executed another fantastic quarter, with significant improvements in both consumer and rider products. As a result, we’ve seen an acceleration in YoY growth in Q2, as well as an improvement in category leadership. We achieved this while still hitting the milestone of a positive adjusted Ebitda on Group level.»

The Integrated Verticals segment recorded a strong GMV growth of 26 percent YoY, and the Dmart business achieved positive Gross Profit in June, ahead of guidance. This was due to healthy volume growth, larger shopping baskets and improved cost efficiency, demonstrating strong potential for the model.

CFO Emmanuel Thomassin: «I’m very pleased that the progression made towards our goals at the start of the year has materialized in Q2. A particularly significant result was that our Dmarts achieved positive Gross Profit for the first time, ahead of previous guidance. As we continue optimizing our operations and sharing key learnings on a global scale, we are unlocking the valuable potential they can have across the business going forward.»

Uplifting the ecosystem

Throughout its path to profitability, Delivery Hero has maintained its commitment to environmental and social programs that benefit its entire ecosystem. The Company aims to play a key role in the long-term success of the broader delivery industry, reinforcing its resilience to future challenges.

This quarter, foodpanda released its 2022 data for pandapurpose. Key results included piloting electric vehicles in seven markets, with 1 in 5 riders now using low-to-no emission modes of delivery, and upskilling more than 56,000 merchants with workshops. Glovo also continued the roll out of its Impact Fund, which commits a small amount from every order to initiatives that include upskilling riders, expanding its sustainable packaging program, and financing boot camps to enable women to start a career in tech. In Korea, Woowa hit the milestone of 200,000 trainees for its restaurant owner education programmes, as well as recruiting its second round of applicants. The latter is a financial support program that supports self-employed restaurateurs in purchasing their first business property.

Delivery Hero – Guidance FY 2023

GMV 5-7% YoY in constant currency, with GMV growth accelerating throughout the year
Total Segment Revenue ~15% YoY in constant currency (previously: ~10% YoY in constant currency), with revenue growth accelerating throughout the year
Adjusted Ebitda FY-2023 >0.5% of GMV |H2-2023 >1.0% of GMV
Free Cash Flow Break-even during H2-2023

Delivery Hero – Key Performance Indicators Q2 2023

(EUR in millions) Q2-2022 Q2-2023
GMV Group 10,776.0 11,083.8
%YoY Growth (RC) 2.9%
%YoY Growth (CC) 8.1%
Asia 6,489.8 6,181.1
MENA 2,015.0 2,315.0
Europe 1,596.7 1,836.9
Americas 674.4 750.8
Integrated Verticals 456.6 542.2
Total Segment Revenue Group 2,325.2 2,581.4
%YoY Growth (RC) 11.0%
%YoY Growth (CC) 16.2%
Asia 937.8 907.3
MENA 514.9 640.6
Europe 329.5 378.0
Americas 177.9 195.8
Integrated Verticals 414.3 515.7
Intersegment consolidation (49.2) (56.0)
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