Delivery Hero: expects its business to break even next year

Berlin / DE. (dhh) Delivery Hero SE, the world’s leading local delivery platform, concludes Q2 2022 with Gross Merchandise Value (GMV) growing 18 percent YoY to EUR 9.9 billion and a Total Segment Revenue increase of 38 percent YoY, leading up to EUR 2.1 billion. With a new record high contribution margin in own-delivery, driven by Asia and Europe segments, and increased market share in key regions, the Company wraps up a successful second quarter despite continued easing of Covid restrictions. The strong performance confirms the Company’s current guidance issued on 22 July 2022, upholding its long-term target to achieve an adjusted Ebitda/GMV margin of 5-8 percent, and creates a robust momentum for Q3 2022. Based on the first six weeks of GMV data, Delivery Hero anticipates a GMV growth of 7 percent QoQ to EUR 10.6 billion (EUR 11.5 billion including Glovo) in Q3 2022, where the Asia Platform business expects a GMV growth of 8 percent QoQ to EUR 7 billion.

Niklas Östberg, CEO and Co-Founder: «We have a strong track record of delivering growth, even in a challenging environment, and have been able to demonstrate this once again in the past quarter. We continue to work towards achieving our guidance on positive adjusted Ebitda for our Platform business in FY 2022 and accelerating our profitability goals at Group level.»

Strong trajectory towards profitability

Delivery Hero continues on its path towards profitability. In May and June, the Company was at adjusted Ebitda break-even for its Platform business – ahead of schedule. The Asia segment, which contributes close to 70 percent of Group GMV, already generated positive adjusted Ebitda for the full Q2 2022.

In July 2022, Delivery Hero welcomed Glovo to the family. With a leading presence in Europe, Central Asia and Africa, more than 50 percent of Glovo’s GMV now contributes a positive adjusted Ebitda. Including the newest member of the Group, Delivery Hero expects its Platform business to achieve break-even in terms of adjusted Ebitda during Q3 2022, and to generate between EUR 40 million and EUR 120 million in Q4 2022. Delivery Hero plans to achieve positive adjusted Ebitda for the entire Group in FY 2023.

Emmanuel Thomassin, CFO: «We had a very solid quarter throughout all segments, with the Integrated Verticals segment showing a strong GMV growth of 75 percent YoY – despite the planned deceleration of new Dmart openings, with a total of 1,125 stores by the end of June. Meanwhile, our constant focus on unit economics and product assortment led to a basket size increase of 27 percent YoY in Q2 2022, driving further increase in gross profit margins. In the second half of 2022, we will continue to work on optimizing our store network and operational efficiency.»

Improved financial position

Delivery Hero remains committed to a disciplined capital allocation, focusing on investments that are in line with the Group’s overall vision. In addition to closing the Glovo transaction, Delivery Hero sold its entire stake in Zomato Ltd. valued at USD 60 million on the open market in July 2022, which was acquired through an investment in 2018. Furthermore, Delivery Hero announced a partial buyback of the Company’s outstanding convertible bonds due in January 2024, for a nominal value of up to EUR 85 million (i.e. approximately 10 percent) on favorable terms. Delivery Hero’s financial position remains solid, with ample liquidity to fund the business and total cash of EUR 2.9 billion available.

Committing to sustainable practices

In 2022, Delivery Hero proudly joined the United Nations Global Compact initiative, a voluntary leadership platform for the development, implementation and disclosure of responsible business practices. Together with more than 15,000 companies and 3,800 non-business entities, based in over 160 countries worldwide, Delivery Hero is committed to taking responsibility for its environmental and social impact.

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