Germany's Delivery Hero SE expects its food delivery business to break even during the second half of 2022, as demand soars with more people eating in since the pandemic began.
In a trading update, the company said that it expects adjusted core earnings of up to €100 million in the fourth quarter, while investments related to its quick commerce business are estimated to peak in the first quarter and gradually decline thereafter.
'Investing Into Growth'
"Delivery Hero has always been investing into growth with the clear ambition of reaching the scale needed to achieve profitability," commented Emmanuel Thomassin, CFO of Delivery Hero.
"We have remained confident that through achieving the right size, we are able to bring tremendous benefits to all partners in our ecosystem, as well as to our shareholders. The investment strategy has proved to be successful, and we are on a solid trajectory to turn our food delivery business profitable during the second half of this year."
The group has grown rapidly during the coronavirus crisis and has invested heavily in the highly competitive quick commerce space, which aims to deliver goods in as little as 10 to 15 minutes.
Investment In Glovo
Delivery Hero, which acquired a majority stake in Spanish delivery startup Glovo last month, said it is now holding about 83% of the company on a non-diluted basis.
With a presence in 25 countries, Glovo has a run-rate of approximately €3.8 billion in GTV, with 80% organic growth rate in 2021.
Delivery Hero, which was founded in 2011, operates in around 50 countries across Asia, Europe, Latin America, the Middle East and North Africa.