German online takeaway food company Delivery Hero has slightly raised its full-year outlook, after reporting a better-than-expected gross merchandise value (GMV) for the third quarter.
Its shares were up 4.9% in early Frankfurt trade.
The Berlin-based company now sees 2023 GMV growth at the upper end of its previous forecast range of 5% to 7% in constant currency terms.
The group generated a quarterly GMV, a common metric for delivery firms, of €11.69 billion, beating analysts' estimates of €11.57 billion in a company-compiled consensus.
Achieving Profitability
After the pandemic-driven boost to online orders, Delivery Hero has focused on reaching long-awaited profitability amid sustained growth, as investor confidence in the rapidly expanding but mostly unprofitable sector has started to wane.
'After another strong quarter we can confirm that we are on course to reach our full year EBITDA guidance, putting us in a strong position for our long term profitability goals,' the group said in a statement.
“We are super excited by our progress as we drive the business towards positive free cash flow," commented Niklas Östberg, CEO and co-founder. "We doubled down on tech and innovation initiatives, delivering solutions for our customers while also optimising our operations both on a country, regional, and global level. I’m very grateful to our teams around the world for the strong developments they made this quarter.”
EBITDA Expectations
The company expects to improve its adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) by more than €850 million in 2023 from a loss of €467.2 million last year.
Delivery Hero, which reports earnings numbers only on a half-year and annual basis, said its key Asia-Pacific business reached a positive adjusted EBITDA before group costs in the month of October.
Additional reporting by ESM
