Delivery Hero Group reaches positive adj. EBITDA as core business takes step forward
- Delivery Hero achieved a positive adj. EBITDA on Group level in H1 2023, with an adj. EBITDA/GMV margin of 0.2% in Q2 2023 after group cost allocation
- The Group recorded double-digit GMV growth of 18% YoY outside of Asia in Q2 2023
- Dmarts attained positive Gross Profit for the first time in June, showcasing strong potential for the Quick Commerce model
- The positive financial results came alongside further deepening of social and environmental initiatives across Delivery Hero’s global footprint
Berlin, 9 August 2023 – Delivery Hero SE (“Delivery Hero”, “the Company” or “the Group”), the world’s leading local delivery platform, can today confirm that it has reached several major milestones on its path to profitability as it releases its Q2 2023 Trading Update. Most significantly, the Group achieved positive adj. EBITDA in H1 2023, with a positive EBITDA/GMV margin of 0.2% in Q2 2023 after group cost allocation. Overall GMV growth accelerated to 8% YoY1, exceeding original expectations of 4% YoY1, and the Group GMV outside of Asia recorded double-digit growth of 18% YoY1. The Asia segment also returned to positive GMV growth at 2% YoY1, despite tough comparable numbers. Total Segment Revenue growth hit 16% YoY1. Accordingly, the company has updated its Total Segment Revenue outlook for FY 2023, expecting an increase of around 15% YoY1 (up from around 10% YoY1 in its previous guidance).
Our team has executed another fantastic quarter, with significant improvements in both consumer and rider products. As a result, we’ve seen an acceleration in YoY growth in Q2, as well as an improvement in category leadership. We achieved this while still hitting the milestone of a positive adj. EBITDA on Group level.Niklas Östberg, CEO and Co-Founder of Delivery Hero
The Integrated Verticals segment recorded a strong GMV growth of 26% YoY1 this quarter, and the Dmart business achieved positive Gross Profit in June, ahead of guidance. This was due to healthy volume growth, larger shopping baskets and improved cost efficiency, demonstrating strong potential for the model.
I’m very pleased that the progression made towards our profitability goals at the start of the year has materialized in Q2. A particularly significant result was that our Dmarts achieved positive Gross Profit for the first time, ahead of previous guidance. As we continue optimizing our operations and sharing key learnings on a global scale, we are unlocking the valuable potential they can have across the business going forward.Emmanuel Thomassin, CFO of Delivery Hero
Uplifting the ecosystem
Throughout its path to profitability, Delivery Hero has maintained its commitment to environmental and social programs that benefit its entire ecosystem. The Company aims to play a key role in the long-term success of the broader delivery industry, reinforcing its resilience to future challenges.
This quarter, foodpanda released its 2022 data for pandapurpose. Key results included piloting electric vehicles in seven markets, with 1 in 5 riders now using low-to-no emission modes of delivery, and upskilling more than 56,000 merchants with workshops. Glovo also continued the roll out of its Impact Fund, which commits a small amount from every order to initiatives that include upskilling riders, expanding its sustainable packaging program, and financing boot camps to enable women to start a career in tech. In Korea, Woowa hit the milestone of 200,000 trainees for its restaurant owner education programmes, as well as recruiting its second round of applicants for the “My First Store Loan”. The latter is a financial support program that supports self-employed restaurateurs in purchasing their first business property.
Delivery Hero – Guidance FY 2023
|GMV||5-7% YoY in constant currency, with GMV growth accelerating throughout the year|
|Total Segment Revenue||~15% YoY in constant currency (previously: ~10% YoY in constant currency), with revenue growth accelerating throughout the year|
|Adj. EBITDA||FY 2023 >0.5% of GMV | H2 2023 >1.0% of GMV|
|Free Cash Flow||Break-even during H2 2023|
Delivery Hero – Key Performance Indicators Q2 2023
|Q2 2022||Q2 2023|
|%YoY Growth (RC)||–||2.9%|
|%YoY Growth (CC)||–||8.1%|
|Total Segment Revenue Group||2,325.2||2,581.4|
|%YoY Growth (RC)||–||11.0%|
|%YoY Growth (CC)||–||16.2%|
For Group, MENA, Americas and Integrated Verticals, Gross Merchandise Value (GMV) and Total Segment Revenues as well as the respective growth rates are impacted by the Argentine, 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 the Glovo Group based on Spanish GAAP with selected adjustments in accordance with Delivery Hero accounting guidelines.
Free Cash Flow is calculated as cash flow from operations (changes in WC exclude receivables from payment service providers and restaurant liabilities) less capital expenditures and payment of lease liabilities. Free Cash Flow excludes interest income and expense.
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) In constant currency
(2) Delivery Hero-owned small warehouses located in strategically relevant locations for delivery
(3) Gross Profit after deduction of delivery costs, store related expenses, supply chain costs, promotions and vouchers
(4) The segment Integrated Verticals captures the business where Delivery Hero acts as a principal
(5) After deduction of delivery costs, store related expenses, supply chain costs and promotions
(6) pandapurpose is foodpanda’s annual Social Impact Report
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.