DGAP-News | 10 Nov 2022
Delivery Hero SE
/ Key word(s): Quarterly / Interim Statement
Berlin, 10 November 2022 – Delivery Hero SE (“Delivery Hero”, the “Company” or “Group”), the world’s leading local delivery platform, today published its Q3 2022 results. In the third quarter, the Company achieved a GMV of EUR 11.45 billion (+12% YoY) and generated a Total Segment Revenue of EUR 2.5 billion (+28% YoY), showcasing continued double-digit growth in the face of a volatile macroeconomic environment.
Niklas Östberg, CEO and Co-Founder of Delivery Hero, said: “We were able to generate healthy GMV growth while maintaining a strong focus on profitability. All segments outside of Asia exceeded expectations and grew more than 30% YoY combined in this past quarter, offsetting the tough comparables for the Asia segment due to a COVID boost in the region back in 2021. More importantly, we accomplished this growth while improving our quarterly adjusted EBITDA with over EUR 200 million since Q4 2021.”
Continuous growth across the globe
Strong GMV development in the MENA (+28% YoY) and Americas (+52% YoY) segments contributed to Delivery Hero’s promising growth trajectory in Q3 2022, while the Integrated Verticals segment also played an important role. Notwithstanding the 60 Dmart net closures during the quarter (1,197 stores in total by the end of Q3 2022 including Glovo and the Mouhalis Group), the Integrated Verticals segment GMV grew 55% YoY in Q3 2022, driven by higher basket values as well as greater customer demand. In addition, the Europe segment saw an acceleration of GMV growth to 27% YoY (13% YoY excluding Glovo). Glovo represents a key factor with a robust GMV increase of 40% YoY in Q3 2022, in spite of the impact on operations in Ukraine (the third largest market for Glovo prior to March 2022).
Advancing on the path towards profitability
In line with former guidance, Delivery Hero’s Platform business reached break-even including Glovo during the third quarter 2022. The profitable markets in the Platform business are expected to achieve an adjusted EBITDA of more than EUR 450 million for H2 2022, EUR 50 million higher than previous guidance as they outperformed in Q3 2022 and are expected to be in line with the plan to reach EUR 250 million adjusted EBITDA in Q4 2022, implying a run-rate of EUR 1 billion. The Company also foresees the entire Platform business increasing its adjusted EBITDA in Q4 2022 to be within the previous guidance of EUR 40 million to EUR 120 million, albeit below the midpoint due to slightly lower GMV growth compared to the initial plan and minor additional investments in two key MENA markets. In terms of the Integrated Verticals segment, Delivery Hero made further improvement on unit economics in Q3 2022 and updated its FY 2022 adjusted EBITDA guidance for the Integrated Verticals segment to between EUR -380 million and EUR -400 million, up from the previous guidance of up to EUR -475 million.
Emmanuel Thomassin, CFO of Delivery Hero, said: “Our strong execution on profitability levers and cost control in the last quarters has been paying off and led to further improvement of our contribution margin. The fully loaded contribution margin reached a new record high with positive numbers in all four regional segments. We also made great progress in launching innovative Advertising Technology across the business, with revenue increasing around 70% YoY and on path to generate more than EUR 2 billion in FY 2024/2025.”
Updated outlook for FY 2022 and clear ambition for FY 2023
Delivery Hero updates its FY 2022 guidance and is now expecting the adjusted EBITDA/GMV margin to arrive at -1.4% to -1.5%, improving from the previously given outlook of -1.5% to -1.6%. Furthermore, the updated FY 2022 guidance puts the Company’s GMV at the lower end of the former forecast of EUR 44.7 billion to EUR 46.9 billion, and Total Segment Revenue at the lower end of the previously anticipated EUR 9.8 billion to EUR 10.4 billion. Looking ahead, Delivery Hero plans to generate a positive adjusted EBITDA/GMV margin of over 0.5% for FY 2023 and over 1% for H2 2023 on Group level, resulting in up to EUR 1.0 billion adjusted EBITDA uplift compared to FY 2022. The Company is committed to reach free cash flow break-even during H2 2023.
Liquidity and financial position
In Q3 2022, Delivery Hero started deleveraging through a partial buyback of its Convertible Bonds due in January 2024. Between July 2022 and September 2022, the Company repurchased EUR 85 million (approximately 10%) of the originally issued Convertible Bonds due in January 2024 (EUR 875 million) for a cash amount of less than EUR 85 million. In September 2022, Delivery Hero cancelled the repurchased bonds. An additional buyback of up to EUR 80 million (around 10%) of the outstanding Convertible Bonds due in January 2024 (EUR 790 million) was announced earlier today to further improve the Company’s capital structure. Delivery Hero’s financial position remains solid.
Delivery Hero – Key Performance Indicators Q3 2022
For Group, MENA, Americas and Integrated Verticals, revenues, adjusted EBITDA, Gross Merchandise Value (GMV) as well as the respective growth rates are impacted by the Argentinian, Lebanese and/or Turkish operations qualifying as hyperinflationary economies according to IAS 29.
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 Platform business corresponds to the four regional segments (Americas, Asia, Europe, MENA) excluding the Integrated Verticals segment.
 Unless specified, all financials include Glovo, as well as Woowa and exclude Delivery Hero Korea on a pro forma basis from Q1 2021 onwards.
 The segment Integrated Verticals captures the business where Delivery Hero acts as a principal.
 Delivery Hero-owned small warehouses located in strategically relevant locations for delivery.
 Following the approval of the Hellenic Competition Authority, Delivery Hero successfully acquired certain subsidiaries from Mouhalis Group in Q3 2022 and integrated the operations into efood.
 Contribution margin relates to Platform business and includes the costs of the physical delivery of the order as well as the transmission and support costs of the order (i.e. payment costs, dispatching costs, customer support).
 After vouchers which correspond to marketing initiatives to incentivize the acquisition of new users or the retention of existing users.
 Refers to non-commission based revenues (NCR) which also include other revenues (e.g. subscription), excluding Woowa and Glovo.
10.11.2022 CET/CEST Dissemination of a Corporate News, transmitted by EQS News - 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:||1483797|
|End of News||EQS News Service|
1483797 10.11.2022 CET/CEST