Subscribe Login
DE4CC0DE-5FC3-4494-BCBF-4D50B00366B5
Technology

Delivery Hero Forecasts Smaller Loss As It Shifts Focus To Profitability

German online takeaway food company Delivery Hero on Friday forecast a smaller loss for the year as it shifts its focus more firmly to profitability in the improving competitive environment.

The shares, which have lost more than a half of their value since the start of the year as investors moved away from pandemic-era darlings, were up 12.9% at 09:56 GMT.

The Berlin-based group now sees smaller negative margin on adjusted core loss (EBITDA) in 2022, at -0.9% to -1% of gross merchandise value (GMV), against a previous guidance of -1% to -1.2%.

"The scale of improvement in the loss is better," Berenberg analyst Sarah Simon said, adding the investor sentiment is much more geared towards profitability now.

Read More: Germany's Delivery Hero, Spanish Unit Glovo Targeted In EU Antitrust Raids

Outlook

Delivery Hero cut its full-year revenue forecast to between €9.0 billion and €9.5 billion ($9.14 billion-$9.65 billion) from a previous range of €9.5 billion to €10.5 billion.

Including Spanish delivery startup Glovo where it holds a majority stake, the group sees revenue of €9.8 billion to €10.4 billion for the year, with an adjusted EBITDA/GMV margin of -1.5% to -1.6%.

It expects its platform business - including loss-making Glovo - to break even on adjusted EBITDA level in the third quarter, and to generate between €40 million and €120 million in the fourth.

It had previously forecast fourth-quarter EBITDA of between €0 to €100 million for the platforms segment.

Delivery Hero also released preliminary figures for the second quarter, including a 38% boost in quarterly revenues to €2.1 billion driven by strong performance in its core food delivery business.

News by Reuters, edited by ESM – your source for the latest technology news. Click subscribe to sign up to ESM: European Supermarket Magazine.

Stay Connected With Our Weekly Newsletter

Processing your request...

Thanks! please check your email to confirm your subscription.

By signing up you are agreeing to our Terms & Conditions and Privacy Policy
Enjoy unlimited digital access for 30 days
Get exclusive access to the latest grocery retail & FMCG news, interviews with industry leading executives, and expert analysis on the trends shaping the sector today
Enjoy unlimited digital access for 30 days
Enjoy unlimited digital access for 30 days
Get exclusive access to the latest grocery retail & FMCG news, interviews with industry leading executives, and expert analysis on the trends shaping the sector today
Enjoy unlimited digital access for 30 days