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Delivery Hero expects 2021 revenue to more than double

Linda Pasquini
·2-min read
FILE PHOTO: FILE PHOTO: The Delivery Hero's logo is pictured at its headquarters in Berlin

By Linda Pasquini

(Reuters) -Delivery Hero expects revenues to more than double in 2021, the German online food takeaway firm said on Wednesday, as it invests in fast-growing quick commerce that aims to deliver goods in as little as 10 to 15 minutes.

The Berlin-based company forecast revenues in a range of 6.1 billion to 6.6 billion euros in 2021 compared to 2.8 billion euros ($3.38 billion) last year.

The German group, which said its focus on expansion could mean a longer wait for profits, has invested in food delivery and quick commerce, which has grown rapidly during the coronavirus crisis.

The firm, which operates in about 50 countries, said it would keep investing in Dmarts -- warehouses in city centres that serve local customers ordering online -- and new markets in Asia and Latin America.

Shares in the company, which was promoted last year to Germany's blue-chip index DAX, less than a decade after it was founded, were up 9.5% at 0949 GMT.

Delivery Hero and rivals such as Uber Eats, Just Eat Takeaway.com and Deliveroo have seen a surge in demand in pandemic lockdowns, but some analysts question how much of that business will persist as restaurants reopen.

The company, which has yet to break even at group level, expects a negative margin on adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of between 1.5% and 2.0% for the year, including 550 million euros allocated for investments.

Chief Executive Niklas Oestberg said the focus on expansion could delay the firm's ability to become profitable. But he told reporters the group was nearly at break even so far this year, once quick commerce and activity in new countries was excluded.

Delivery Hero would take advantage of investment opportunities if more arose in the next few years, he added.

($1 = 0.8283 euros)

(Reporting by Linda Pasquini, Milla Nissi in Gdansk; Editing by Mark Potter and Edmund Blair)