The food delivery service Delivery Hero wants to continue to grow this year.
Earnings before interest, taxes, depreciation and amortization (Ebitda) adjusted for special effects are expected to increase to between 910 and 960 million euros, as the MDAX-listed company announced in Berlin on Thursday. Analysts had on average a value at the upper end of the range. The share was recently quoted on the stock exchange 1.74 percent higher at 16.12 euros. However, it has lost around 30 percent of its value since the beginning of the year.
When it comes to gross merchandise value (GMV), management is targeting an increase of eight to ten percent at constant exchange rates. Total sales in all segments are expected to increase by 14 to 16 percent without currency effects.
For Marcus Diebel from the US bank JPMorgan, the outlook for operating earnings is somewhat weaker than expected. But he praised the strong free cash flow. Giles Thorne from Jefferies sees the key change from last year in the operating result for the second half of the year, which was slightly below the consensus forecast. Looking ahead, the 2026 targets are unlikely to impact consensus estimates.
CEO and co-founder Niklas Östberg sees the group as being well positioned to implement the announced strategic review. The sale of the Taiwan business of the subsidiary Foodpanda, announced at the beginning of the week, is one of many measures that the company is taking.
Delivery Hero wants to sell the Taiwan business to the Grab company from Singapore without debt or cash for 600 million US dollars (around 519 million euros). The deal is expected to be completed in the second half of the year. Delivery Hero plans to use the proceeds from the sale to pay down debt and for general corporate purposes.
The food delivery service announced in December that it would examine the sale of parts of the company. The group also wanted to consider strategic partnerships and capital market transactions for national companies. In addition, “value-enhancing measures for capital structure and capital allocation” were being examined, it was said at the time.
There had previously been reports that investors were urging management to sell business areas.
In the past financial year, Delivery Hero recorded a gross merchandise value (GMV) of around 49.2 billion euros, as announced at the end of February. Segment sales climbed to 14.8 billion euros. The adjusted operating result (Ebitda) was – as now specified – at 903 million euros. Free cash flow was 250 million euros.
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BERLIN (dpa-AFX)
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