Delivery Hero’s Q2 2022 results confirm accelerated trajectory towards profitability
- In Q2 2022, Delivery Hero reached a Gross Merchandise Value (GMV) of EUR 9.9 billion (+18% YoY), while Total Segment Revenue grew by 38% YoY, reaching EUR 2.1 billion
- Delivery Hero’s FY 2022 guidance which was already updated in July has been confirmed. Including Glovo, the Group forecasts GMV between EUR 44.7 billion to EUR 46.9 billion, Total Segment Revenue between EUR 9.8 billion to EUR 10.4 billion, and an adjusted EBITDA/GMV margin between -1.5% to -1.6%
- For Q3 2022, Delivery Hero anticipates a GMV growth of 7% QoQ to EUR 10.6 billion (EUR 11.5 billion including Glovo)
- The Company expects its Platform business(1) to achieve adjusted EBITDA break-even during Q3 2022, including Glovo
- The Company has improved its liquidity position with total cash of EUR 2.9 billion available
- By joining the United Nations Global Compact, Delivery Hero underlines its commitment to sustainable practices in all business areas
Berlin, 16 August 2022 – Delivery Hero SE (“Delivery Hero”, the “Company” or the “Group”), the world’s leading local delivery platform, concludes Q2 2022 with Gross Merchandise Value (GMV) growing 18% YoY to EUR 9.9 billion and a Total Segment Revenue increase of 38% YoY, leading up to EUR 2.1 billion. With a new record high contribution margin in own-delivery(2), driven by Asia and Europe segments, and increased market share in key regions, the Company wraps up a successful second quarter despite continued easing of COVID restrictions. The strong performance confirms the Company’s current guidance issued on 22 July 2022, upholding its long-term target to achieve an adjusted EBITDA/GMV margin of 5-8%, and creates a robust momentum for Q3 2022. Based on the first six weeks of GMV data, Delivery Hero anticipates a GMV growth of 7% QoQ to EUR 10.6 billion (EUR 11.5 billion including Glovo) in Q3 2022, where the Asia Platform business expects a GMV growth of 8% QoQ to EUR 7 billion.
We have a strong track record of delivering growth, even in a challenging environment, and have been able to demonstrate this once again in the past quarter. We continue to work towards achieving our guidance on positive adjusted EBITDA for our Platform business in FY 2022(3) and accelerating our profitability goals at Group level.Niklas Östberg, CEO and Co-Founder of Delivery Hero
Strong trajectory towards profitability
Delivery Hero continues on its path towards profitability. In May and June 2022, the Company was at adjusted EBITDA break-even(4) for its Platform business – well ahead of schedule. The Asia segment, which contributes close to 70% of Group GMV, already generated positive adjusted EBITDA for the full Q2 2022.
In July 2022, Delivery Hero welcomed Glovo to the family. With a leading presence in Europe, Central Asia and Africa, more than 50% of Glovo’s GMV now contributes a positive adjusted EBITDA(5). Including the newest member of the Group, Delivery Hero expects its Platform business to achieve break-even in terms of adjusted EBITDA during Q3 2022, and to generate between EUR 40 million and EUR 120 million in Q4 2022. Delivery Hero plans to achieve positive adjusted EBITDA for the entire Group in FY 2023.
We had a very solid quarter throughout all segments, with the Integrated Verticals segment(6) showing a strong GMV growth of 75% YoY – despite the planned deceleration of new Dmart(7) openings, with a total of 1,125 stores by the end of June. Meanwhile, our constant focus on unit economics and product assortment led to a basket size increase of 27% YoY in Q2 2022, driving further increase in gross profit margins. In the second half of 2022, we will continue to work on optimizing our store network and operational efficiency.Emmanuel Thomassin, CFO of Delivery Hero
Improved financial position
Delivery Hero remains committed to a disciplined capital allocation, focusing on investments that are in line with the Group’s overall vision. In addition to closing the Glovo transaction, Delivery Hero sold its entire stake in Zomato Ltd. valued at USD 60 million on the open market in July 2022, which was acquired through an investment in 2018. Furthermore, Delivery Hero announced a partial buyback of the Company’s outstanding convertible bonds due in January 2024, for a nominal value of up to EUR 85 million (i.e. approximately 10%) on favorable terms. Delivery Hero’s financial position remains solid, with ample liquidity to fund the business and total cash of EUR 2.9 billion available.
Committing to sustainable practices
In 2022, Delivery Hero proudly joined the United Nations Global Compact initiative, a voluntary leadership platform for the development, implementation and disclosure of responsible business practices. Together with more than 15,000 companies and 3,800 non-business entities, based in over 160 countries worldwide, Delivery Hero is committed to taking responsibility for its environmental and social impact.
Delivery Hero – Key Performance Indicators Q2 2022
|Q2 2021||Q2 2022|
|%YoY Growth (RC)||74.2%||17.7%|
|%YoY Growth (CC)||80.8%||13.7%|
|Total Segment Revenues Group||1,549.9||2,134.2|
|%YoY Growth (RC)||104.6%||37.7%|
|%YoY Growth (CC)||115.1%||30.8%|
|Intersegment consolidation 1||(35.2)||(49.2)|
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 Growth / CC = Constant Currency Growth.
1. Difference between Total Segment Revenue and the sum of segment revenues is mainly due to intersegment consolidation 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 of the Delivery Hero Group (Americas, Asia, Europe, MENA) including group costs. The Integrated Verticals segment is not part of the Platform business.
(2) Customer orders are fulfilled by Delivery Hero’s own delivery fleet.
(3) Excluding Glovo.
(4) Excluding one-off effects (e.g. hyperinflation in Turkey, according to IAS 29).
(5) Before allocation of Glovo’s central costs.
(6) The segment Integrated Verticals captures the business where Delivery Hero acts as a principal.
(7) Delivery Hero-owned small warehouses located in strategically relevant locations for delivery.
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.