Delivery Hero concludes FY 2022 with further profitability improvement in Q4
- Delivery Hero recorded solid GMV growth in Q4, while concurrently progressing on its path towards profitability
- The Company improved its adjusted EBITDA/GMV margin by 3 percentage points YoY to -0.3% in Q4 2022, while reaching -1.4% adjusted EBITDA/GMV margin for the entire FY 2022
- Delivery Hero has finished FY 2022 with an ample cash balance of EUR 2.4 billion
- Looking ahead, the Company confirms its adjusted EBITDA/GMV margin, as well as free cash flow guidance for FY 2023
Berlin, 9 February 2023 – Delivery Hero SE (“Delivery Hero”, the “Company” or “Group”), the world’s leading local delivery platform, today published its results for the last quarter of 2022, showing further advancement towards the Company’s profitability goals. The Q4 2022 results demonstrate an uplift in the adjusted EBITDA/GMV margin to -0.3% (-3.3% in Q4 2021) for the entire Group, including Glovo. Despite the lifting of COVID restrictions in Asia, the Company achieved a healthy growth: the GMV increased by 9% YoY to EUR 11.4 billion in the fourth quarter 2022, while the Total Segment Revenue reached a 21% YoY increase hitting EUR 2.5 billion.
We have wrapped up another successful quarter. We were able to improve our market position in almost all key countries, while significantly improving our profitability. This was driven by cost focus, increased operational efficiencies, as well as our high margin AdTech business, which grew revenues to a run rate of EUR 750 million in the fourth quarter.Niklas Östberg, CEO and Co-Founder of Delivery Hero
Well on the way to profitability
Profitability was the backbone of Delivery Hero’s strategy in 2022, and the Company’s consistent focus on this ambition clearly paid off. While Delivery Hero’s Platform business including Glovo reached a positive adjusted EBITDA in Q4 2022, excluding Glovo it even generated a positive adjusted EBITDA for the entire FY 2022.
Building upon the positive development in the Platform business, Delivery Hero’s Integrated Verticals segment delivered a strong quarter and outperformed guidance for the full year, leading to an adjusted EBITDA of EUR -345 million (excluding Glovo) for the entire FY 2022 against the forecasted EUR -380 million to EUR -400 million.
At Group level (including Glovo), the solid performance in both the Company’s Platform business and the Integrated Verticals segment resulted in a FY 2022 adjusted EBITDA/GMV margin of -1.4%, coming in at the upper end of the previously given guidance range of -1.4% to -1.5%. Furthermore, the Company ended FY 2022 with an abundant cash balance of EUR 2.4 billion.
Partly driven by foreign currency effects as well as the Company’s intensified focus on profitability, Delivery Hero’s FY 2022 GMV was just below the guidance of EUR 44.7 billion to EUR 46.9 billion, coming in at EUR 44.6 billion. The Total Segment Revenue for FY 2022 was slightly below the guidance of EUR 9.8 billion to EUR 10.4 billion, coming in at EUR 9.6 billion.
Last year, the entire industry was faced with several challenges and we worked hard to come out of it as winners. We now look forward to continuing on this path in 2023, and we are glad to confirm our guidance of a positive adjusted EBITDA/GMV margin – including Glovo – of over 0.5% for the entire FY 2023 and over 1% for H2 2023. We also remain committed to reaching free cash flow break-even during the second half of 2023.Emmanuel Thomassin, CFO of Delivery Hero
Delivery Hero – Key Performance Indicators Q4 & FY 2022
(All values include Glovo, as well as Woowa and exclude Delivery Hero Korea on a pro forma basis)
|Q4 2021||Q4 2022||FY 2021||FY 2022|
|%YoY Growth (RC)||–||8.8%||–||17.5%|
|%YoY Growth (CC)||–||7.9%||–||–|
|Total Segment Revenues Group||2,100.1||2,534.5||7,262.5||9,589.7|
|%YoY Growth (RC)||–||20.7%||–||32.0%|
|%YoY Growth (CC)||–||17.6%||–||–|
|Intersegment consolidation 1||(42.8)||(50.7)||(135.2)||(199.8)|
For Group, MENA, Americas and Integrated Verticals, revenues, adjusted EBITDA, Gross Merchandise Value (GMV) as well as the respective growth rates are impacted by the Argentinian, Lebanese and/or Turkish operations qualifying as hyperinflationary economies according to IAS 29.
RC = Reported Currency / CC = Constant Currency.
Pro forma financial information includes Woowa and Glovo and excludes Delivery Hero Korea from 1 January 2021 onwards respectively. The Woowa, Delivery Hero Korea and Glovo transactions closed on 4 March 2021, 29 October 2021 and 4 July 2022 respectively. The pro forma financial information reflects Glovo group based on Spanish GAAP with selected adjustments in accordance with Delivery Hero accounting guidelines. Prior period adjustments are excluded from the pro forma financial information presented.
1. Difference between Total Segment Revenue and the sum of segment revenues is mainly due to intersegment consolidation adjustments for services charged by the Platform businesses to the Integrated Verticals businesses.
ABOUT DELIVERY HERO
Delivery Hero is the world’s leading local delivery platform, operating its service in over 70 countries across Asia, Europe, Latin America, the Middle East and Africa. The Company started as a food delivery service in 2011 and today runs its own delivery platform on four continents. Additionally, Delivery Hero is pioneering quick commerce, the next generation of e-commerce, aiming to bring groceries and household goods to customers in under one hour and often in 20 to 30 minutes. Headquartered in Berlin, Germany, Delivery Hero has been listed on the Frankfurt Stock Exchange since 2017 and is now part of the MDAX stock market index. For more information, please visit www.deliveryhero.com
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(1) Platform business corresponds to the four regional segments (Americas, Asia, Europe, MENA) excluding the Integrated Verticals segment.
(2) The segment Integrated Verticals captures the business where Delivery Hero acts as a principal.
(3) GMV and Total Segment Revenue guidance to be announced with publication of Annual Report 2022.
This release may contain forward looking statements, 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,” “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. Forward-looking statements are based on the current views, expectations and assumptions of the management of Delivery Hero SE and involve significant known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. 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. Any forward-looking statements included herein only speak as at the date of this release. We undertake no obligation, and do not expect to publicly update, or publicly revise, any of the information, forward-looking statements or the conclusions contained herein or to reflect new events or circumstances or to correct any inaccuracies which may become apparent subsequent to the date hereof, whether as a result of new information, future events or otherwise. We accept no liability whatsoever in respect of the achievement of such forward-looking statements and assumptions.