DGAP-News | 22 Jul, 2022 10:02 AM
Delivery Hero SE
/ Key word(s): Change in Forecast/Bond
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: 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.”
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.
Preliminary figures for the Integrated Vertical segment showed a GMV increase of 75% YoY in Q2 2022, with the number of Dmarts 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), 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. 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
An overview of the updated FY 2022 guidance is displayed in the table below:
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
INVESTOR RELATIONS CONTACT
 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.
 Company compiled consensus excluding Glovo (18 analysts).
 Delivery Hero-owned small warehouses located in strategically relevant locations for delivery.
 Like-for-like growth rates are adjusted for the acquisition of certain operations in the Balkan region in 2021.
 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.
|Company:||Delivery Hero SE|
|Oranienburger Straße 70|
|Phone:||+49 (0)30 5444 59 105|
|Fax:||+49 (0)30 5444 59 024|
|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||DGAP News Service|