Flash Update: Delivery Hero expects its food delivery business to break even during H2 2022 and shares insights on Glovo’s business performance
- Delivery Hero anticipates its food delivery business to reach adjusted EBITDA break-even during the second half of 2022
- Additionally, Delivery Hero publishes a Flash Update to provide more context on becoming the majority shareholder of Glovo
- Having a strong presence in 25 countries, Glovo has a run-rate of approximately EUR 3.8 billion in GTV with 80% organic growth rate in 2021
Berlin, 10 January 2022 – Delivery Hero SE (“Delivery Hero”), the world’s leading local delivery platform, today announced that its food delivery business (including Glovo) is expected to break even during H2 2022 and generate between EUR 0 and 100 million in adjusted EBITDA in Q4 2022, while investments related to its quick commerce business are predicted to peak in the first quarter of 2022 and gradually decline thereafter. Delivery Hero reconfirms its long-term adjusted EBITDA/GMV margin target of 5-8%.
Delivery Hero has always been investing into growth with the clear ambition of reaching the scale needed to achieve profitability. We have remained confident that through achieving the right size, we are able to bring tremendous benefits to all partners in our ecosystem, as well as to our shareholders. The investment strategy has proved to be successful, and we are on a solid trajectory to turn our food delivery business profitable during the second half of this year.Emmanuel Thomassin, CFO of Delivery Hero
Flash Update on Glovo transaction
Following the agreement signed between Delivery Hero and a number of shareholders of Glovoapp23, S.L. (“Glovo”) on 31 December 2021, Delivery Hero publishes a Flash Update to provide insights into Glovo’s business model, financials and competitive positioning as well as details of the transaction. For more information, please refer to the full presentation of the Flash Update or visit Delivery Hero’s Investor Relations website.
ABOUT DELIVERY HERO
Delivery Hero is the world’s leading local delivery platform, operating its service in around 50 countries across Asia, Europe, Latin America, the Middle East and North 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 10 to 15 minutes. Headquartered in Berlin, Germany, Delivery Hero is listed on the Frankfurt stock exchange since 2017, and became part of the leading index DAX (Deutscher Aktienindex) in 2020. For more information, please visit www.deliveryhero.com
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(1) The run-rate is calculated as an annualized figure for GTV (Gross Transaction Value) in December 2021 and includes signed M&A transactions in the process of completion during Q1 2022.
(2) The closing of the transaction is subject to certain customary conditions and regulatory approvals, including merger control clearance in several countries, and is expected to occur in the second quarter of 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.