- ORIGINAL NEWS
Delivery Hero reverses losses to climb 5% after reporting sales growth in line with targets
- SUMMARY
Delivery Hero, a well-known global food delivery service, announced its preliminary financial results for 2023 earlier than expected.
The company’s sales grew moderately, with a 6.8% increase in gross sales volume, reaching 47.6 billion euros.
Additionally, they reported positive adjusted EBITDA of over 250 million euros and expect further improvement in profitability during 2024.
Delivery Hero’s share price had faced a downturn last week due to news related to asset sales.
However, the release of these preliminary results aimed to address investor concerns and provide transparency.
The company’s shares showed signs of recovery, initially dropping but later regaining some of their value.
Delivery Hero’s revenue and adjusted EBITDA met or exceeded analysts’ expectations.
The company highlighted growth in order volume, contributing to overall sales.
Notably, they forecasted stronger results for 2024, including revenue growth of 15-17% and a significant increase in adjusted EBITDA.
Delivery Hero’s recent asset sales, including its stake in Deliveroo and discussions regarding Foodpanda, impacted its share price last week.
The company emphasized its strategic approach to mergers and acquisitions, aiming to unlock value rather than solely seeking financial returns.
Overall, Delivery Hero demonstrated resilience and optimism by sharing its preliminary results and projecting stronger profitability for the upcoming year.
The company aims to compete effectively in the global food delivery market, where it faces competition from other major players like DoorDash, Deliveroo, and Just Eat Takeaway.com.
- NEWS SENTIMENT CHECK
- Overall sentiment:
positive
Positive
“Delivery Hero’s decision to share its numbers early were a bid by the company to push back on investor flight last week over the food delivery giant’s asset sales strategy.”
“Delivery Hero said it would publish additional preliminary numbers for the fourth quarter in a trading update slated for Feb. 14, when it was originally due to report numbers”
Negative
“Delivery Hero shares sank Monday morning, extending losses from last week, as investors reacted to preliminary financial results released by the company.”
“Delivery Hero has been notably active when it comes to mergers and acquisitions over the past year or so — both on the acquisitions side of things and divestments.”