Delivery Hero has achieved a positive adjusted EBITDA (earnings before interest, depreciation and amortization). EBITDA is a measurement computed for a company that takes its interests and adds back interest expenses, taxes and depreciation charges, plus other adjustments to the metric.
The German online takeaway food company raised its full-year revenue outlook and is now on the lookout for growth investments. After the first half of the year, Delivery Hero is now in profit.
Reuters is reporting that it’s expecting total segment revenue to grow around 15% this year.
A milestone for Delivery Hero
Delivery Hero released its second quarter for 2023 trading update. At the same time it reached several milestones. Overall gross merchandise value (GMV) growth spiked to 8% year-on-year. This exceeded the expectation of 4% by far. The group’s GMV outside of Asia recorded a double growth of 18% year-on-year. GMV refers to the value of goods sold via customer-to-customer or e-commerce platforms. It’s calculated prior to the deduction of any fees or expenses. It helps the company to measure the growth of the business.
The total segment revenue growth hit a astounding 16% YoY. Its outlook for the 2023 financial year is now around 15%, up from around 10% in its previous estimates.
CFO Emmanuel Thomassin said he’s pleased with Delivery Hero’s progress. This seems to be inline with the goals the company set out at the start of the year. “A particularly significant result was that our Dmarts achieved positive Gross Profit for the first time, ahead of previous guidance. As we continue optimizing our operations and sharing key learnings on a global scale, we are unlocking the valuable potential they can have across the business going forward,” said Thomassin.
Comparing competitors: Delivery Hero vs Uber Eats
According to the latest available data, Uber Eats made about $10.9 globally in 2022, surpassing its competitors Delivery Hero and DoorDash. Delivery Hero was not far behind with $9.2 billion, and DoorDash $6.6 billion.
The CEO and Co-founder of Delivery Hero, Niklas Östberg believes it’s a remarkable revenue outlook. “Our team has executed another fantastic quarter, with significant improvements in both consumer and rider products. As a result, we’ve seen an acceleration in YoY growth in Q2, as well as an improvement in category leadership. We achieved this while still hitting the milestone of a positive adj. EBITDA on Group level.”
Uplifting the ecosystem
Throughout the path of profitability, Delivery Hero is showing commitment to help the environment and society with several programs. It wants to continue to play a key role in the long-term to help develop and maintain sustainability in the delivery industry. This will also help with creating resilience to any future challenges.
One of its initiatives is to minimize the use of plastic. The sustainable packaging program focuses on providing packaging to restaurants to displace their plastic packaging. “We want to ensure packaging is compostable, fulfills food safety and operational needs while being price competitive,” the company said.