Delivery Hero Shares Surge on Sunnier 3Q Views
August 16 2022 - 6:32AM
Dow Jones News
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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