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Delivery Hero’s Platform business at adjusted EBITDA break-even already during Q2 2022

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DGAP-News: Delivery Hero SE / Key word(s): Change in Forecast/Bond
Delivery Hero’s Platform business at adjusted EBITDA break-even already during Q2 2022
22.07.2022 / 10:02
The issuer is solely responsible for the content of this announcement.

  • Delivery Hero today published preliminary results for Q2 2022, highlighting a successful quarter despite easing of COVID restrictions

  • The Company’s Platform business[1] is at adjusted EBITDA-break-even in May and June 2022

  • After successfully closing the Glovo transaction, Delivery Hero today also shared details on Glovo’s preliminary H1 2022 business performance

  • Delivery Hero’s management board updated the Company’s FY 2022 guidance (excluding Glovo), expecting a Gross Merchandise Value (GMV) of EUR 41 billion to EUR 43 billion (previously EUR 44 billion to EUR 45 billion) and raising the EBITDA/GMV margin outlook to -0.9% to -1.0 % (previously -1.0% to -1.2%)

 

Berlin, 22 July 2022 – Delivery Hero SE (“Delivery Hero”, the “Company” or the “Group”), the world’s leading local delivery platform, today published preliminary results for Q2 2022. Based on preliminary numbers, Delivery Hero’s Gross Merchandise Value (GMV) increased by 18% YoY to EUR 9.9 billion in Q2 2022 (consensus[2]: EUR 10.1 billion) and by 24% YoY in H1 2022. Total Segment Revenue grew by 38% YoY to EUR 2.1 billion in Q2 2022 (consensus: EUR 2.2 billion) and by 44% YoY in H1 2022. The entire Group improved the preliminary adjusted EBITDA/GMV margin by 0.4 percentage points YoY to -1.6% in H1 2022 (consensus: -1.8%) and by 1.0 percentage points YoY to -1.4% in Q2 2022, with May and June at break-even (excl. IAS 29).

 

Niklas Östberg, CEO and Co-Founder of Delivery Hero, said: “We set out two primary goals for 2022: the first was to grow market leadership across our global footprint for both the Platform business and Quick Commerce. The second was to accelerate our transition to profitability on a consolidated basis. I am delighted to see that we have exceeded our H1 2022 targets on both of these fronts, giving us strong momentum as we move into the second half of the year.”

 

Platform business

In May and June 2022, the Company was at adjusted EBITDA break-even for its Platform business after group costs and excluding the one-off impact from Turkey, according to IAS 29. This was achieved ahead of the previous guidance, which projected break-even for the Platform business in H2 2022. Delivery Hero also gained market share in key geographies, a result that speaks in favor of the Company’s multi-vertical model and focus on offering the best experience and widest selection for customers. The improvement in adjusted EBITDA was driven by rationalization of marketing and incentive spend across the industry. Moreover, the strengthening of the Company’s own logistics capabilities in key markets, the successful implementation of service fees in a few selected markets, and the increased penetration of advertising technology products (“AdTech”) also contributed to a structural improvement in EBITDA margins, supporting the Company’s path to profitability throughout the year.

Including the negative EBITDA at Glovo, Delivery Hero expects its Platform business to break-even in terms of adjusted EBITDA during Q3 2022, and to generate between EUR 40 million and EUR 120 million in Q4 2022 (previously EUR 0 to EUR 100 million).

Furthermore, the Company confirms its long term target of 5-8% adjusted EBITDA to GMV.

 

Integrated Verticals

Preliminary figures for the Integrated Vertical segment showed a GMV increase of 75% YoY in Q2 2022, with the number of Dmarts[3] remaining almost unchanged compared to the previous quarter, as the Company continues to focus on the improvement of unit economics. The Company expects performance in the Integrated Verticals segment to exceed the previous guidance, resulting in at least EUR 50 million better adjusted EBITDA for the full year 2022 compared to previous guidance. Accordingly, the Management Board of the Company now anticipates an adjusted segment EBITDA for the full year 2022 of up to EUR -475 million (previously up to EUR -525 million).

 

Glovo H1 2022 performance and outlook

According to Glovo, the company achieved its primary objective, gaining market share and growing significantly above the industry average in H1 2022. The company is now the leading delivery platform in the majority of markets in which it operates. Looking at the GMV, the preliminary numbers provided by Glovo showed an increase to EUR 1.8 billion (+85% YoY) in H1 2022 (+35% like-for-like)[4], with ca. 50% of Glovo’s GMV now being generated in positive EBITDA markets prior to central overhead.

Due to more moderate growth ambitions and a stronger focus on profitability, Glovo's management adjusted its outlook and now expects a GMV of EUR 3.7 billion to EUR 3.9 billion for FY 2022 (previously EUR 4.0 billion to EUR 4.3 billion). This results in a lower EBITDA loss than anticipated, amounting to up to EUR -300 million (previously EUR -330 million).

 

Updated Delivery Hero guidance for FY 2022

Based on the preliminary business performance in H1 2022, Delivery Hero foresees itself exceeding the prior set adjusted EBITDA guidance for FY 2022. Delivery Hero anticipates a GMV of EUR 41 billion to EUR 43 billion (previously EUR 44 billion to EUR 45 billion) for the Group (excl. Glovo). Furthermore, the Company expects to reach a Total Segment Revenue of EUR 9.0 billion to EUR 9.5 billion (previously EUR 9.5 billion to EUR 10.5 billion) and an improved adjusted EBITDA/GMV margin of -0.9% to -1.0% (previously -1.0% to -1.2%). For the Platform business, Delivery Hero continues to anticipate a positive adjusted EBITDA for FY 2022, implying that it will be profitable in H2 2022. The investments in the Integrated Verticals segment - based on adjusted EBITDA level - are expected to amount to up to EUR -475 million (previously up to EUR -525 million).

Taking the closing of the Glovo transaction into account, Delivery Hero also disclosed an outlook that includes Glovo: the Group expects to reach a GMV of EUR 44.7 billion to EUR 46.9 billion, a Total Segment Revenue of EUR 9.8 billion to EUR 10.4 billion, and an adjusted EBITDA/GMV margin of -1.5% to -1.6% in FY 2022, on a pro-forma basis[5]. With regards to the Platform business, the Q4 2022 adjusted EBITDA target, including Glovo, was raised to EUR 40 million to EUR 120 million (previously EUR 0 to EUR 100 million).

 

Delivery Hero (excluding Glovo) – Key Performance Indicators H1 2022

 

Q1 2022

Preliminary Q2 2022

Preliminary H1 2022

GMV

EUR 10.1 billion
(31% YoY)

EUR 9.9 billion
(18% YoY)

EUR 20.0 billion
(24% YoY)

Total Segment Revenues

EUR 2.1 billion
(52% YoY)

EUR 2.1 billion
(38% YoY)

EUR 4.2 billion
(44% YoY)

Adjust EBITDA margin

-1.9% of GMV

-1.4% of GMV

-1.6% of GMV

 

An overview of the updated FY 2022 guidance is displayed in the table below:

 

Previous FY 2022 Guidance

Updated FY 2022 Guidance

Delivery Hero (excluding Glovo)

GMV

EUR 44 billion to EUR 45 billion
(24% to 27% YoY)

EUR 41 billion to EUR 43 billion
(16% to 22% YoY)

Total Segment Revenue

EUR 9.5 billion to EUR 10.5 billion

EUR 9.0 billion to EUR 9.5 billion

Adjusted EBITDA margin

-1.0% to -1.2% of GMV
*Platform business break-even
*Integrated Verticals up to EUR -525 million

-0.9% to -1.0% of GMV
*Platform business generate positive adj. EBITDA
*Integrated Verticals up to EUR –475 million

Glovo

GMV

EUR 4.0 billion to EUR 4.3 billion
(>85% YoY)

EUR 3.7 billion to EUR 3.9 billion
(71% to 81% YoY)

Total Segment Revenue

-

EUR 0.8 billion to EUR 0.9 billion

Adjusted EBITDA

EUR -330 million

EUR -300 million

Delivery Hero (including Glovo, on a pro-forma basis)

GMV

-

EUR 44.7 billion to EUR 46.9 billion
(19% to 25% YoY)

Total Segment Revenue

-

EUR 9.8 billion to EUR 10.4 billion

Adjusted EBITDA margin

*Platform business generates positive adj. EBITDA between EUR 0 to EUR 100 million in Q4 2022

-1.5% to -1.6% of GMV
*Platform business generates positive adj. EBITDA between EUR 40 million to EUR 120 million in Q4 2022

 

Convertible bonds buyback

Delivery Hero also announced a partial buyback of the Company’s outstanding convertible bonds, for a nominal value of up to EUR 85 million (i.e. approx. 10%). The transaction relates to the outstanding principal of the convertible bonds due in January 2024, which the Company may repurchase over the coming months. The buyback, possibly starting as early as today, may be carried out in over-the-counter transactions, and is expected to end by September 30, 2022. Delivery Hero intends to cancel the repurchased bonds. Delivery Hero has appointed a bank to execute the repurchase independently within parameters that will be predefined. To the extent legally permissible, the repurchase can be terminated, extended, suspended, and also resumed at any time. At this time, no further repurchases are planned.

 

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

 

MEDIA CONTACT
Lara Hesse
Corporate & Financial Communications
+49 151 54 66 00 56
press@deliveryhero.com

 

INVESTOR RELATIONS CONTACT
Christoph Bast
Head of Investor Relations
+49 160 30 13 435
ir@deliveryhero.com

 

DISCLAIMER
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.

 

[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] Company compiled consensus excluding Glovo (18 analysts).

[3] Delivery Hero-owned small warehouses located in strategically relevant locations for delivery.

[4] Like-for-like growth rates are adjusted for the acquisition of certain operations in the Balkan region in 2021.

[5] Pro-forma basis: Delivery Hero Group results including Glovo from 1 January 2022 onwards.


22.07.2022 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
Archive at www.dgap.de

Language:

English

Company:

Delivery Hero SE

Oranienburger Straße 70

10117 Berlin

Germany

Phone:

+49 (0)30 5444 59 105

Fax:

+49 (0)30 5444 59 024

E-mail:

ir@deliveryhero.com

Internet:

www.deliveryhero.com

ISIN:

DE000A2E4K43

WKN:

A2E4K4

Indices:

MDAX

Listed:

Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange; London, OTC QB, OTC QX, SIX, Vienna Stock Exchange

EQS News ID:

1403773


 

End of News

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