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Technology

Delivery Hero Sees Higher Gross Merchandise Value In Q3

By Dayeeta Das
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Delivery Hero Sees Higher Gross Merchandise Value In Q3

German online takeaway food company Delivery Hero has forecast a 7% jump in its third-quarter gross merchandise value (GMV) to €10.6 billion ($10.8 billion), compared with the April to June period.

Including Barcelona-headquartered food delivery firm Glovo, in which Delivery Hero owns a majority stake, the group expects its GMV to reach €11.5 billion in the three months to 30 September.

"Slowdown... what Slowdown? A strong Q3 outlook and positive comments on profitability – upgrades are coming through," analysts at J.P. Morgan commented the trading update in a note to clients.

The company expects the Asia segment for its platform business, which accounts for nearly three quarters of the group's GMV, to generate €7 billion in the current three-month period, an 8% increase on the quarter.

The segment had also generated positive core earnings in the second quarter.

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Profitability

Delivery Hero also reiterated its target to reach profitability for the entire group in 2023. 

The widely loss-making food delivery sector was one of the big beneficiaries of the COVID-19 pandemic, but that effect has waned as consumers, faced with soaring inflation, have started to cut back.

In the third quarter of 2021, Delivery Hero had posted a GMV of €9.6 billion, a 65% increase year-on-year, boosted by higher demand for food delivery amid coronavirus restrictions.

The Berlin-based firm confirmed its preliminary figures for the second quarter, including an 18% GMV growth and a 38% rise in revenues on the year, and the updated full-year guidance it issued in July.

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

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