By Pierre Bertrand

 

Shares in Delivery Hero SE rose sharply Tuesday after it forecast additional growth in gross merchandise value in the third quarter .

At 0949 GMT, shares traded up 11% at EUR55.60.

The German food-delivery company said it now anticipates gross merchandise value to grow 7% on-quarter to 10.6 billion euros ($10.77 billion) in the third quarter.

Delivery Hero's platform business is also expected to break even on an adjusted earnings before interest, taxes, depreciation and amortization basis in the third quarter when taking into account recently acquired Spanish courier business Glovo, the company said.

The company looks poised for a seasonally strong third quarter unlike other food peers in the U.S. and Europe, Davy Research analysts said in a note. It has a strong focus on Asia which was profitable during the whole of the second quarter, the analysts said.

On current trading, Delivery Hero's gross merchandise value in the third quarter is expected to be in line with, or slightly better than, consensus forecasts, the bank said. Citi also expects the company to book a quarterly acceleration in gross merchandise value in Asia.

By the fourth quarter, the company said its platform business will generate adjusted Ebitda of between EUR40 million and EUR120 million.

For the full year, Delivery Hero confirmed the guidance it updated in July. This includes gross merchandise value in the range of EUR44.7 billion to EUR46.9 billion, including Glovo. It also backed long-term targets including reaching an adjusted Ebitda/GMV margin of between 5% and 8% by 2030.

On Tuesday, Delivery Hero confirmed previously announced preliminary numbers for the second quarter, with total segment revenue growing to EUR2.13 billion from EUR1.55 billion and gross merchandise value increasing to EUR9.88 billion from EUR8.39 billion.

 

Write to Pierre Bertrand at pierre.bertrand@wsj.com

 

(END) Dow Jones Newswires

August 16, 2022 06:17 ET (10:17 GMT)

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