Delivery Hero beats growth estimates, sees 2026 profit at top end of guidance
Delivery Hero's Financial Performance and Strategic Outlook
By Ozan Ergenay
April 30 (Reuters) - German online takeaway food company Delivery Hero on Thursday reported higher-than-expected quarterly gross merchandise value (GMV) and said its 2026 earnings would be at the upper end of its earlier guidance range.
Quarterly Results and Growth Metrics
The company's GMV, a common metric for delivery firms measuring the total value of all goods sold, grew 8.8% to 12.5 billion euros ($14.6 billion) in the first quarter, beating analysts' average estimate of 12.3 billion euros in a company-compiled poll.
Delivery Hero's shares gained 5.6% in early trading, though they are still down 11% since the start of the year.
Drivers of Growth
It said the quarterly results were supported by its transition into an "Everyday App" that offers a range of everyday items rather than just food, along with continued expansion of its quick commerce business.
"We told investors that we're going to invest more in Korea, Talabat and quick commerce, and I think all these areas have done tremendously well, and we see good returns from those investments," CEO Niklas Oestberg told Reuters.
Profit Guidance and Financial Outlook
Delivery Hero's adjusted earnings before interest, taxes, depreciation and amortization are expected to be at the higher end of its confirmed full-year guidance range of 910 million to 960 million euros, finance chief Marie-Anne Popp said in the earnings statement.
Strategic Review and Shareholder Relations
Ongoing Strategic Review
STRATEGIC REVIEW CONTINUES
Last year, Delivery Hero said it was reviewing capital allocation measures and evaluating strategic options, as it came under pressure from several large shareholders to carry out a strategic review.
Oestberg said the review was ongoing and the company was narrowing its focus to selected markets after exiting Taiwan and had clear plans on where and how it wanted to compete.
"We can't be too open about what the coming plans are when it comes to any potential asset disposal, as we also want to make sure we have a good negotiation position," he added.
Shareholder Feedback and Management Response
Major Shareholder Concerns
Asked about major shareholder Aspex's criticism of Delivery Hero's low profitability compared to peers and calls for management changes, Oestberg said the company kept dialogue open to all investors and listened to any constructive criticism.
Support from Other Shareholders
However, he said the company had very strong support among many other shareholders.
Additional Information
($1 = 0.8576 euros)
(Reporting by Ozan Ergenay in Gdansk, editing by Matt Scuffham and Milla Nissi-Prussak)
