Delivery Hero (DHER.DE) Raises Annual GMV Target
On Tuesday, Delivery Hero (DHER.DE) revised its annual gross merchandise value (GMV) target upward after surpassing third-quarter expectations in the same metric, leading to a 5% surge in its shares.
The growth was attributed to the integration of artificial intelligence, enhancing logistics and food presentation on Delivery Hero’s platforms, resulting in increased orders, as revealed by Emmanuel Thomassin, the company’s finance chief. Delivery Hero also credited improved monetization through its advertising technology, along with increased revenue from service and subscription fees.
Exceeding Analysts’ Predictions:
The quarterly GMV, a key metric for delivery firms, reached 11.69 billion euros ($12.50 billion), slightly surpassing analysts’ predictions of 11.57 billion euros.
Anticipating 2023 GMV growth at the upper end of the previously projected range of 5-7% in constant currency terms, Delivery Hero is focusing on profitability post the pandemic-induced growth surge.
In a significant development, the Asia-Pacific region, accounting for the largest share of GMV, achieved positive adjusted core earnings (EBITDA) before group costs in October. This positive performance is expected to contribute to meeting the annual adjusted EBITDA/GMV margin target of exceeding 0.5%. Unlike its 2022 loss of 624 million euros, Delivery Hero anticipates an adjusted EBITDA of approximately 250 million euros for this year.
The South Korean Woowa unit, facing competition from Coupang, stabilized its market share at around 77% since September, focusing on delivery services and promotional campaigns. While ongoing discussions about the sale of the Foodpanda brand in Asia persist, Emmanuel Thomassin clarified that the planned sale is strategic and not driven by losses or lack of profitability.
He refrained from confirming recent media reports suggesting a possible sale price exceeding 1 billion euros, emphasizing that the proceeds from the sale would be reinvested in a market with better returns.
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