Delivery Hero has released its latest financial results for the first quarter of 2024, with a “strong top-line performance.”
The gross merchandise value grew by 8% year-on-year (YoY) and peaked at a double-digit revenue growth of 21% YoY. Delivery Hero believes this confirms that its strategy to focus on “profitable growth, cash generation, and disciplined capital allocation” continues to work successfully.
Delivery Hero has confirmed again that it believes it’s on the right track to delivery. It recorded an EBITDA of up to $830 million and a positive Free Cash Flow in this financial year.
CEO and co-founder Niklas Östberg says: “We had a great start to 2024. We continue to execute our plan for profitable growth and cash flow generation while deepening our focus on building clear leadership positions in our portfolio.”
Numbers in perspective?
Reuters reports that its revenue growth outlook has been adjusted to 21% YoY due to “increased orders and advertising revenue.”
In its previous reporting cycle, Delivery Hero anticipated a 17% increase. This could be seen as a confidence boost to capitalize on the growing market and consumer demand.
CEO of Wear Your Brand, Stephan Soroka, says the revised outlook can be seen as a “relief to investors concerned about the challenges of retaining customers in a competitive landscape.” This rings true, especially after the surge in demand during the pandemic lockdowns.
Analysts surely didn’t anticipate this outcome. The food delivery industry continues to evolve, and Delivery Hero remains committed to innovation.
Double-digit revenue growth
The company has experienced double-digit revenue growth across the majority of its business segments.
Comparing the first quarter of 2023 with the first quarter of 2024, the team showed some remarkable growth.
During a recent interview with McKinsey & Company, CEO Niklas Östberg explained how Delivery Hero is “doubling down on grocery delivery” to help the company with its growth plan. Östberg says the company aspires to be the “driving force” to improve customer service, even if it comes with a “short-term expense.”
No deal with Foodpanda
The company has been rocked with speculation and turbulence in the last few months regarding a potential sale of its Foodpanda business. But in February, it reached a financial decision that ended much uncertainty around the speculation.
It terminated discussions that ended the plans to “potentially sell” its Foodpanda business in selected Southeast Asian markets. Delivery Hero withdrew from negotiations when it disagreed with “fundamental terms regarding the sale of the business.”
The year ahead
With significant year-on-year growth in gross merchandise value and revenue, Delivery Hero hopes not just to ride the wave of increased demand but to actively shape the future of the delivery industry.
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About the author
Mia is a multi-award-winning journalist. She has more than 14 years of experience in mainstream media. She's covered many historic moments that happened in Africa and internationally. She has a strong focus on human interest stories, to bring her readers and viewers closer to the topics at hand.
