Delivery Hero continues its strong performance with revenues up by 60% and invests further for growth
Berlin, 2 August 2018 – Delivery Hero Group (“Delivery Hero”), one of the leading global online food ordering and delivery marketplaces, continues its growth path in the first half of 2018 with a 60% increase in revenues. Given the positive business performance and growing food delivery market, Delivery Hero will increase investments to take advantage of opportunities it has across the business.
Niklas Östberg, CEO of Delivery Hero, said:
“We have had an excellent first half with continued high growth across the business. We have seen the food delivery market continue to expand and this is opening up many new opportunities to invest across our countries. As we have said at IPO, our core focus remains on growth and further strengthen our leadership positions to continue creating long-term shareholder value.”
Group financial performance H1 2018:
- o Orders grew by 46% to 184 million
- o Gross Merchandise Value (GMV) grew by 50% on constant currency and by 37% as reported to EUR 2,359 million
- o Revenues grew by 60% on constant currency and by 48% as reported to EUR 357 million
- o Group take-rate improved to 15.1% from 14.0% in the prior corresponding period
- o Preliminary adjusted EBITDA margin at -15%, on track with management expectations
- o Delivery Hero continues to execute on its M&A strategy to consolidate and focus on leadership positions:
- – Acquisition of hipMenu, an online food delivery marketplace in Romania with leadership positions in many cities and strong management team
- – Acquisition of iFood’s online food delivery operations in Argentina to strengthen our leadership position in that market
- – Investment in Glovo of EUR 51m the leading European, on-demand and multi- vertical delivery platform based in Spain with operations in Spain, Italy, France and many other markets, making Delivery Hero the largest minority shareholder
- – Divestment of our operations in Brazil to iFood
- – Planned divestment of our operations in Australia, France, Italy and Netherlands
Delivery Hero will opportunistically deploy up to EUR 80 million for additional investments in the second half of 2018 to take advantage of positive business performance and increasing food delivery market. Delivery Hero has identified clear opportunities to invest at attractive returns and to continue to strengthen its leadership positions.
These investments will be allocated across marketing, restaurant coverage, technology and product capabilities and are expected to generate incremental revenues of EUR 9 million in 2018 and EUR 25 million in 2019, with continued future revenues from returning customers.
Delivery Hero expects to continue investing at similar levels during the course of 2019 which will also add to incremental customers and revenues.
Delivery Hero raises its revenue guidance by EUR 35 million, driven by positive business performance and additional investments. After adjustments for planned divestments with expected revenues of EUR 20 million, Delivery Hero expects to achieve full year revenues of between EUR 760 million and EUR 780 million in 2018.
Delivery Hero is on track with its previous full year adjusted EBITDA guidance prior to the additional investments that will reduce adjusted EBITDA by up to EUR 80 million. As a result of the investments, Delivery Hero does not expect to reach breakeven on an adjusted EBITDA basis in December 2018 on a monthly level and for the full year 2019, as previously intended.
- Gross Merchandise Value (GMV) is the total value of orders (including VAT) transmitted to restaurants.
- Like-for-like figures exclude the results of our disposed operations in India. In 2017, India revenues were €2.3m in Q1, €2.6m in Q2, €2.5m in Q3 and €2.5m in Q4. The results of smaller acquisitions and disposals are not adjusted for.
- Revenues presented for Delivery Hero Group represent the total segment revenues.
Financial Calendar 2018:
|Sep 13, 2018||Half-Year Report 2018|
|Nov 7, 2018||Q3/9M Trading Update 2018|
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.
About Delivery Hero
Delivery Hero is one of the leading global online food ordering and delivery marketplace with number one market positions in terms of restaurants, active users and orders in more countries than any of its competitors and online and mobile platforms across 40+ countries in Europe, the Middle East & North Africa (MENA), Latin America and the Asia-Pacific region. Delivery Hero also operates its own delivery service primarily in 60+ high-density urban areas around the world. The Company is headquartered in Berlin and has over 14,000 employees.
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WKN: A2E4K4; ISIN: DE000A2E4K43.
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