Delivery Hero raises full-year guidance after record growth in Q2
DGAP-News: Delivery Hero SE
/ Key word(s): Quarter Results
Berlin, July 28, 2020 - Delivery Hero SE ("Delivery Hero"), the world's leading local delivery platform, continued on its unprecedented growth path in the second quarter of 2020, prompting the company to increase its full-year revenue forecast from EUR 2.4-2.6 to EUR 2.6-2.8 billion.
Delivery Hero's orders almost doubled (+95% YoY) to a record 281 million in the second quarter, far ahead of its peers. After an initial drop from March until May due to COVID-19, Delivery Hero's order growth is back on track and the company broke its record of monthly orders with more than 100 million orders delivered in June (+105% YoY). Continuing at this pace, 2020 is set to be the first year in which Delivery Hero will total more than one billion orders on its platforms.
In the second quarter, GMV grew by 66% YoY to EUR 2.8 billion and group revenues surpassed the EUR 600 million mark, nearly doubling to EUR 612 million (+96% YoY). Delivery Hero continues to focus on innovating for a seamless order experience and fast deliveries, with more than a third (37%) of orders being delivered in less than 20 minutes.
Niklas Östberg, CEO of Delivery Hero, said: "We are proud of the incredible performance in Q2. Initiatives to expand our services, improve operational performance and invest in q-commerce are driving our business to record highs. It's encouraging to see more and more people turning to Delivery Hero for their daily needs. Thanks to the ability to quickly adapt to recent market developments, we are raising our full-year guidance to EUR 2.6-2.8 billion."
Delivery Hero expands support for delivery ecosystem and communities
By increasing product innovation and targeted marketing campaigns, Delivery Hero's expanded services are supporting both restaurants and customers throughout the pandemic. Introducing features such as seamless platform onboarding for vendors, no-contact and free delivery, as well as enabling safer dining-in options with contactless orders, the company's offering now includes more than 630,000 restaurants. With approximately 130,000 restaurants added in Q2 alone, Delivery Hero can provide its customers with the widest and most diverse selection globally outside of China.
Riders are the backbone of Delivery Hero's operations. The company launched a EUR 3 million Rider Financial Support Program in April to provide freelance riders with financial assistance during the pandemic. To protect the health of its riders, Delivery Hero consulted doctors to create interactive safety instructions and continues to provide sanitizer, masks, and safety materials along with reinforcing safety guidelines.
Giving back to the communities in which it operates, the company has, besides encouraging home delivery and social distancing, donated meals to frontline workers and people in need. For example, in Saudi Arabia, HungerStation partnered with the Food Bank to donate 554,000 meals, and in Turkey, Yemeksepeti donated 150,000 pizzas to 55 hospitals.
Cementing leadership in q-commerce as orders double
Built on two pillars, partnerships with local partners and Dmarts (local warehouses also known as cloud stores), q-commerce is giving customers the speed and choice to order whatever they need, whenever they need it. In Turkey, Yemeksepeti delivered almost 400,000 grocery items in a single day in June- only a year after launching.
Moreover, Delivery Hero is running q-commerce with over 20,000 local partners to give a broad variety of choice and operating approximately 150 Dmarts in eleven countries to offer instant delivery (with the aim to deliver in less than 15 minutes). Delivery Hero's q-commerce story is just getting started: The company expects to operate 400 Dmart stores by the end of 2020. The potential q-commerce market is estimated at EUR 56 billion in Delivery Hero's active countries and EUR 448 billion globally by 2030, offering significant room for continued expansion.
Strategic investments drive new market entry
In line with the company ambition of adding high potential markets with strong growth possibilities, Japan offers an attractive investment opportunity because of still being an early stage delivery industry. The company plans to invest EUR 20-30 million to get started on the ground in Japan.
Emmanuel Thomassin, CFO of Delivery Hero, said: "Even in these unprecedented times, we have seen record growth across Delivery Hero's markets, putting us in a strong place to build out our global leadership position. We are excited to announce that we will launch operations in Japan, the world's third-largest economy, in Q3. Japan is the greatest underpenetrated delivery market outside of China, and we see great potential to win market shares in this early stage environment."
Delivery Hero continues to expect regulatory approval for the acquisition of South Korean online food delivery platform BDMJ in the second half of 2020.
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Financial Calendar 2020
Delivery Hero - Key Performance Indicators Q2 2020
ABOUT DELIVERY HERO
|Company:||Delivery Hero SE|
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|EQS News ID:||1103357|
|End of News||DGAP News Service|