Delivery Hero Eyes Smaller Loss As It Shifts Focus To Profitability

By Dave Simpson
Delivery Hero Eyes Smaller Loss As It Shifts Focus To Profitability

German online takeaway food company Delivery Hero DHER.DE has 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 0956 GMT on Friday 22 July.

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.

Delivery Hero cut its full-year revenue forecast to between €9.0 billion and €9.5 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.

Preliminary Figures For Second Quarter

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 Hospitality Ireland. Click subscribe to sign up for the Hospitality Ireland print edition.