Delivery Hero reports strong performance in Q1 2019 with 93% revenue growth
Berlin, 25 April 2019 – Delivery Hero Group (“Delivery Hero”), one of the leading global online food ordering and delivery marketplaces, reported strong financial performance for Q1 2019. Delivery Hero has sustained its strong growth through successful deployment of investments, expansion of leadership and delivery capabilities. In Q1 2019, revenue grew by 93% year-on-year on a constant currency basis.
Niklas Östberg, CEO of Delivery Hero, commented:
“We had a great first quarter with an impressive step up in order volumes as we continue to invest across our early stage markets. Today’s result is due to our focus on increasing restaurant selection, providing greater access to our services, operationally improving our platforms and continued excellent execution by our local teams. With a strong start to trading in the second quarter we look forward to the year.”
Group Financial Performance FY 2018:
- The full 2018 annual report can be downloaded on the Delivery Hero website, via the following link: https://ir.deliveryhero.com/websites/delivery/English/3100/financial-reports.html
Group Financial Performance Q1 2019:
- Orders grew by 55% to 125 million
- GMV grew by 57% on constant currency and by 55% as reported to EUR 1,508 million
- Revenues grew by 93% on constant currency and by 94% as reported to EUR 267 million
- Group take-rate improved to 17.7% and excluding own delivery was at 11.8%
Key Operational Highlights Q1 2019:
- The increase in cash position from the above-described transaction allows Delivery Hero to allocate more capital towards investment opportunities across its segments at attractive returns thereby expanding leadership positions and growth
- As a result, Delivery Hero announced an upgrade to its investment plan, with an aim to increase investments with a net adjusted EBITDA impact of negative EUR 250 million over the course of 2019. Delivery Hero expects to generate incremental revenues of EUR 45 million in 2019 and EUR 81 million of incremental recurring revenue per year starting in 2020
- Delivery Hero had a good start to the investment program and is confident to deploy the entire EUR 250 million on top of the previously announced EUR 160 million over the course of 2019
- Added a record 16m orders Quarter on Quarter driven by the expansion of our early stage markets, wider adoption of online food delivery services and our additional investments
- Increased restaurant selection for our consumers with more than 290,000 active restaurants in over 4,000 cities
- Furthered our leadership in own delivery with 25% of total orders fulfilled via our own delivery capabilities
- Accelerated new customers to our platform and increased order frequency on the back of our investments in product improvements and affordability
- Enhanced our technology and product offering with our second-generation cloud kitchens, new verticals and the re-launch of subscription services in several countries
- Delivery Hero has increased its revenue guidance to between EUR 1.1 billion and EUR 1.2 billion given the better than expected business performance
- Delivery Hero expects to reach the previously set adjusted EBITDA guidance of between negative EUR 270 million and negative EUR 320 million. In our Europe segment we expect to breakeven during the second half of 2019 and in our MENA segment to generate EUR 70 million of adjusted EBITDA for the full year
Key Performance Indicators Q1 2019 (excluding Germany):
Key Performance Indicators FY 2018:
- Americas revenues and GMV are impacted by the Argentinian operations qualifying as hyperinflationary economy according to IAS 29 beginning 1 September 2018. 2018 revenue is retrospectively adjusted. Comparability is affected as prior period information is not restated.
- Included reported current growth rates for Argentina in our constant currency calculation due to the effects of hyperinflation in Argentina.
- The reported figures have been retrospectively adjusted for the divestments of India, divestment of foodora (Australia, France, Italy & Netherlands) and Germany
- Numbers have not been adjusted for smaller acquisitions or divestments
- The acquisition of Zomato’s online food delivery business in UAE consolidated from 1 March 2019. The estimated impact of €18m relates to the time of March to December 2019. No like for like adjustment will be made given its impact on FY group revenues is limited to ~1.5%.
- Gross Merchandise Value (GMV) is the total value of orders (including VAT) transmitted to restaurants
- Revenues presented for Delivery Hero represent the total segment revenues prior to discounts
- From Jan 2019, EBITDA will be adopted for IFRS 16
- Constant currency provides an indication of the business performance by removing the impact of foreign exchange rate movements
Conference Call and Webcast Details:
Niklas Östberg, Emmanuel Thomassin, and Duncan McIntyre will host an analyst and investor conference call to discuss the FY 2018 / Q1 2019 results at 09:30am CEST on April 25, 2019. Members of the investor community can follow the audio webcast on https://webcasts.eqs.com/delivery20190425
An on-demand replay will be available on the corporate website following the presentation.
The accompanying presentation can be downloaded on the Delivery Hero website, via the following link: https://ir.deliveryhero.com/websites/delivery/English/3500/presentations-and-webcasts.html
Financial Calendar 2019:
|2019 Annual General Meeting||Jun 12, 2019|
|Half-year 2019 Report||Sep 4, 2019|
|Q3/9M 2019 Quarterly Statement||Nov 07, 2019|
About Delivery Hero:
Delivery Hero is one of the leading global online food ordering and delivery marketplaces. The company maintains number one competitive market positions, in terms of restaurants, active users and orders, and online and mobile platforms, across 33 out of 41 countries in Europe, the Middle East & North Africa (MENA), Latin America and Asia-Pacific. Delivery Hero also operates its own delivery service primarily in over 250 cities around the world. The Company is headquartered in Berlin, Germany and has over 19,000 employees.
For more information, please visit www.deliveryhero.com
WKN: A2E4K4; ISIN: DE000A2E4K43
Investor Relations Enquiries
SVP Corporate Finance & Head of Investor Relations
Corporate Spokesperson & Senior Manager Corporate Communications
The presentation contains forward looking statements, other estimates, opinions and projections with respect to anticipated future performance of Delivery Hero SE (“Forward-looking Statements”). These Forward-looking Statements can be identified by the use of forward-looking terminology, including the terms “believes”, “estimates”, “anticipates”, “expects”, “intends”, “aims”, “plans”, “predicts”, “may”, “will” or “should” or, in each case, their negative, or other variations or comparable terminology. These Forward-looking Statements include all matters that are not historical facts. They appear in a number of places throughout this press release and include statements regarding Delivery Hero SE’s intentions, beliefs or current expectations concerning, among other things, Delivery Hero SE’s prospects, growth, strategies, the industry in which it operates and potential or ongoing acquisitions. By their nature, Forward-looking Statements involve significant risks and uncertainties, because they relate to events and depend on circumstances that may or may not occur in the future. Forward-looking Statements should not be read as guarantees of future performance or results and will not necessarily be accurate indications of whether or not such results will be achieved. Similarly, past performance should not be taken as an indication of future results, and nor representation or warranty, express or implied, is made regarding future performance. The development of Delivery Hero SE’s prospects, growth, strategies, the industry in which it operates, and the effect of acquisitions on Delivery Hero SE may differ materially from those made in or suggested by the Forward-looking Statements contained in this presentation or past performance. In addition, even if the development of Delivery Hero SE’s prospects, growth, strategies and the industry in which it operates are consistent with the Forward-looking Statements contained in this presentation or past performance, those developments may not be indicative of Delivery Hero SE’s results, liquidity or financial position or of results or developments in subsequent periods not covered by this presentation. Any Forward-Looking Statements only speak as at the date of this press release is provided to the recipient and it is up to the recipient to make its own assessment of the validity of any Forward-looking Statements and assumptions. No liability whatsoever is accepted by Delivery Hero SE in respect of the achievement of such Forward-looking Statements and assumptions.