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 COVID-19 pandemic began.
Adjusted Core Earnings Expectation And Investments Estimates
The company 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.
Rapid Growth And Heavy Investment
The German group has grown rapidly during the COVID-19 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.
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Delivery Hero, which acquired a majority stake in Spanish delivery startup Glovo last month, said that it is now holding approximately 83% of the company on a non-diluted basis.