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Germany’s Delivery Hero hikes 2023 revenue guidance
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(Reuters) -German online takeaway food company Delivery Hero on Wednesday raised its full-year revenue outlook, after it swung to a profit in the first half of the year on accelerating growth.
(Reuters) -German online takeaway food company Delivery Hero on Wednesday raised its full-year revenue outlook, after it swung to a profit in the first half of the year on accelerating growth.
The Berlin-based company expects total segment revenue to grow around 15% this year, compared with its previous guidance for growth of around 10% in constant currency terms.
After a pandemic-driven boost to growth, Delivery Hero has focused on reaching long-awaited profitability while maintaining growth as investor confidence in the rapidly expanding but mostly unprofitable sector started to wane.
The group said its adjusted core operating result (EBITDA) swung to profit in the first six month of the year, from a loss of 323.0 million euros in the same period a year earlier and surpassing analysts’ expectations of a loss of 5 million euros in a company-compiled consensus. It did not disclose a concrete figure.
Adjusted EBITDA margin on gross merchandise value (GMV) in the second quarter came in at 0.2% on improved cost allocation, the company said.
Revenue rose 16% in constant currency to 2.58 billion euros in the second quarter, slightly above consensus estimate of 2.50 billion euros.
Delivery Hero’s stock was up 3.6% in early Frankfurt trade.
(Reporting by Linda Pasquini and Anna Mackenzie in Gdansk; Editing by Himani Sarkar and Conor Humphries)
Revenue growth refers to the increase in a company's sales over a specific period, typically expressed as a percentage. It indicates how well a company is performing in generating income from its business activities.
Profitability is a measure of a company's ability to generate profit relative to its revenue, expenses, and equity. It indicates how efficiently a company can convert sales into profits.
EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. It is a financial metric used to assess a company's operating performance by eliminating non-operational expenses.
Adjusted EBITDA is a modified version of EBITDA that excludes certain one-time or non-recurring expenses, providing a clearer picture of a company's ongoing operational performance.
Gross Merchandise Value (GMV) is the total sales dollar value for merchandise sold through a company's platform over a specific period, before deducting any fees or expenses.
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