Delivery Hero’s profitability target now firmly in sight as company reports revenue growth of 12% YoY
● All of Delivery Hero’s segments aside from Asia showed an average GMV growth rate of 16% in Q1 2023, while Asia declined 7%, driven by difficult COVID comparables
● In the first quarter, the Company’s Platform business 1 recorded a significant Gross Profit margin increase to over 7% of GMV
● The Company’s adjusted EBITDA/GMV margin 2 improved by almost EUR 250 million YoY, EUR 30 million above budget
● Setting its guidance for FY 2023, Delivery Hero expects a GMV growth of 5-7% and around 10% Total Segment Revenue increase3; adjusted EBITDA/GMV margin outlook is confirmed to hit over 0.5% for the entire FY 2023 and over 1% for H2 2023, as well as Free Cash Flow break-even during H2 2023
Delivery Hero SE (“Delivery Hero”, the “Company” or “Group”), the world’s leading local delivery platform, today presented its Q1 2023 financial results. The company continued its steady progress towards its profitability goals, despite a challenging comparison period, compounded by the effects of COVID reopening in parts of Asia, including Korea. Total Segment Revenue grew 12% YoY to EUR 2.5 billion, outpacing the GMV growth of 2% YoY 3 to EUR 11.2 billion. The Gross Merchandise Value (GMV) increase for the Delivery Hero Group excluding Asia totalled 16%, with all other segments recording double-digit growth, while Asia declined 7% due to a difficult COVID comparables. The Company also strengthened its position across the majority of its footprint, including some of the largest countries it operates in, ensuring strong momentum as it moves into Q2. The Platform business continued to perform outstandingly, expanding to a Gross Profit margin to GMV of more than 7%. The combination of these factors has led to an improvement of the entire Group’s adjusted EBITDA by around EUR 250 million YoY to -0.1% of the GMV 2 , EUR 30 million ahead of plan.
Niklas Östberg, CEO and Co-Founder of Delivery Hero, said: “Despite many shared obstacles facing
the entire industry, we’ve recorded a strong first quarter. We grew category share across numerous
countries we operate in, while improving profitability by EUR 250 million YoY at the same time. We’ve
already observed a promising start to Q2, and expect an acceleration in growth throughout this year.
There is still enormous potential to expedite the growth of our business for the coming years as we
increase our customer base, keep improving our cohorts, and add new verticals.”
2023 guidance Looking at the rest of the year, Delivery Hero laid out its FY 2023 GMV and Revenue guidance, and expects to accelerate its growth quarter on quarter to reach 5-7% YoY for the full year in constant currency, while Total Segment Revenue is expected to grow by around 10% in constant currency. In line with the Company’s profitability plans, Delivery Hero confirms its previous guidance of an adjusted EBITDA/GMV margin for the Group of over 0.5% for the entire FY 2023, and over 1.0% for H2 2023, as well as reaching Free Cash Flow break-even during the second half of 2023. With a glimpse further ahead, the Company confirms its long-term ambitions to achieve a 5-8% adjusted EBITDA/GMV margin on Group level by 2030.
Emmanuel Thomassin, CFO of Delivery Hero, said: “It’s a very exciting time for Delivery Hero. We’re moving closer towards our profitability targets, making significant improvements on this front, while remaining on track to achieve Free Cash Flow break-even during H2 2023. By doubling down on operational efficiency and focusing on the many levers we have available, we still see enormous potential to keep driving profitability for many years to come.”
Strengthening the balance sheet
Delivery Hero continues to focus on improving its capital structure and liquidity position. In February 2023, the Company repurchased a portion of its outstanding 2024 and 2025 convertible bonds, using the proceeds from the successful placement of convertible bonds amounting to EUR 1,000.0 million due in 2030. With this transaction, the Company significantly improved its debt maturity profile. Delivery Hero’s financial position remains solid.
Delivery Hero – Key Performance Indicators Q1 2023
|Q1 2022||Q1 2023|
|%YoY Growth (RC)||32.1%||1.5%|
|%YoY Growth (CC)||–||2.1%|
|Total Segment Revenues Group||2,231.3||2,494.3|
|%YoY Growth (RC)||48.4%||11.8%|
|%YoY Growth (CC)||–||12.2%|