Delivery Hero reports strong results for Q2 and H1 2024 – Delivery Hero

Delivery Hero reports strong results for Q2 and H1 2024

• Global GMV growth of 7%¹ in the second quarter compared to the previous year, GMV growth rate outside Asia of 23%¹ in the second quarter compared to the previous year
• Sales growth of the entire segment by 20%¹ YoY in Q2 2024
• Adj. EBITDA of EUR 240 million and FCF² Break-even in the first half of 2024, further FCF generation expected in the second half of 2024
• Company confirms positive outlook for fiscal year 2024
• Delivery Hero prepares IPO of its Talabat business in the fourth quarter of 2024

Berlin, 29 August 2024 – Delivery Hero SE (“Delivery Hero”, the “Company” or the “Group”), the world’s leading local delivery platform, today announced its financial results for the second quarter of 2024 and the first half of 2024. They show that the pursuit of profitable growth across its global reach continues to pay off. In the first half of 2024, Delivery Hero achieved an adjusted EBITDA of EUR 240 million, an increase of EUR 231 million compared to the first half of 2023, and achieved a free cash flow² (FCF) break-even. The company expects further FCF generation in the second half of 2024.

The company reported positive gross merchandise value (GMV) growth of 7%¹ for the full quarter, mainly due to increased order volume, with GMV growth outside Asia reaching 23%¹ YoY in Q2 2024. Delivery Hero ended the quarter with a GMV increase of 10%¹ in June compared to the same period last year (YoY), with growth coming from almost all segments. Expansion of AdTech business, Dmart business, service and subscription fees, and a continued increase in own delivery (OD) share continued to drive double-digit growth in total segment revenue, which increased by 20%¹ Year-on-year comparison in Q2 2024.

The gross profit margin of the platform business remained stable at 7.6% in the second quarter of 2024, with a further margin improvement expected for the second half of 2024. The gross profit margin of the Integrated Verticals segment almost doubled quarter-on-quarter to 4%. In addition, the Group expects a significant improvement in adjusted EBITDA for the entire Integrated Verticals segment in the second half of 2024 and to reach break-even by December of this year.

Niklas Östberg, CEO and co-founder of Delivery Hero, said: “We delivered another strong quarter of growth and improved profitability, a testament to our relentless focus on customer experience, operational efficiency and category leadership. We finished the quarter on a strong note and expect continued growth and a significant increase in profitability in the second half of 2024.”

Strong development of the Group’s platform business in all regions
In the MENA region, the Group’s platform business achieved an excellent GMV sales performance of 28%¹ YoY, driven by continuous ecosystem and customer experience improvements. Europe saw double-digit order volume growth, resulting in industry-best GMV development of 19%¹ YoY in Q2 2024 among European competitors. In Asia, the platform business recorded revenue growth of 9%¹ YoY, due to the continued OD rollout and a growing advertising business. Despite increasing competition in South Korea, a number of initiatives in Q2 2024 have led to a strong recovery in order volumes in recent months. The platform business in the Americas reached adjusted EBITDA break-even in June.

Marie-Anne Popp, interim CFO of Delivery Hero, said: “We achieved our goal of delivering strong financial results in line with our 2024 guidance. Our healthy revenue growth continued in the second quarter of 2024 and, following an adjusted EBITDA increase of €231 million year-on-year, we reached breakeven free cash flow in the first half of 2024. These numbers reflect the effectiveness of our business strategy to drive profitable growth, cash generation and disciplined capital allocation.”

Positive cash development in H1 2024
Delivery Hero maintained a stable cash development and a balanced debt maturity profile in the first half of 2024. Following the successful refinancing transaction in the first half of 2024, which further optimized the Company's capital structure and improved its debt maturity profile, Delivery Hero continues to have a strong liquidity position with EUR 1.8 billion in cash and cash equivalents at the end of the first half of 2024. This includes cash inflows from the disposal of minority interests and proceeds from capital contributions in connection with the Taiwan divestment. Part of the proceeds from these capital contributions amounting to EUR 88 million were used to buy back convertible bonds on the open market in the first half of 2024.

Delivery Hero prepares IPO of Talabat business in fourth quarter of 2024
Delivery Hero announced today that it is preparing to list its Talabat business, its food delivery and quick commerce business in Middle East and North Africa countries, on the Dubai Financial Market in the fourth quarter of 2024. Full details can be found in the ad hoc announcement here.

Delivery Hero – Forecast for fiscal year 2024

Delivery Hero – Key Performance Indicators Q2 2024³

Note: All figures mentioned in this press release are unaudited and based on preliminary information.
¹ GMV growth and total segment revenue growth at constant currency and excluding hyperinflation.

² Free cash flow is calculated as cash flow from operating activities (changes in cash flow excluding receivables from payment service providers and restaurant liabilities) less capital expenditures and payment of lease liabilities. Free cash flow excludes interest income and expenses.

³ For the regions Group, Europe, MENA, Americas and Integrated Vertical, sales and gross merchandise value (GMV) as well as the respective growth rates are influenced by the business activities in Argentina, Ghana, Lebanon and/or Turkey, which are considered hyperinflationary economies according to IAS 29. RC = Reporting currency / CC = Constant currency.

⁴ The difference between total segment revenue and sum of segment revenue is primarily due to consolidation adjustments between segments for services invoiced by the platform businesses to the integrated verticals.

ABOUT DELIVERY HERO
Delivery Hero is the world's leading local delivery platform and offers its service in around 70 countries in Asia, Europe, Latin America, the Middle East and Africa. The company started as a food delivery service in 2011 and now operates its own delivery platform on four continents. In addition, Delivery Hero is a pioneer in Quick Commerce, the next generation of e-commerce, with the aim of getting groceries and household goods to the customer in less than an hour and often in 20 to 30 minutes. Headquartered in Berlin, Germany, Delivery Hero has been listed on the Frankfurt Stock Exchange since 2017 and is part of the MDAX share index. For more information, visit www.deliveryhero.com

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This communication may contain forward-looking statements, estimates, opinions and forecasts with respect to the future development of Delivery Hero SE (“forward-looking statements”). These forward-looking statements can be identified by the use of forward-looking terms such as “believes”, “estimates”, “anticipates”, “expects”, “intends”, “may”, “will” or “should” or the negative thereof or similar variants or comparable terminology. These forward-looking statements include all matters that are not historical facts. Forward-looking statements are based on the current opinions, forecasts and assumptions of the management of Delivery Hero SE and involve substantial known and unknown risks and uncertainties, as a result of which actual results, performance and events may differ materially from those expressly or implicitly contained in forward-looking statements. Forward-looking statements should not be understood as guarantees of future performance or results and are not necessarily reliable indicators of whether or not such results will be achieved. The forward-looking statements contained herein speak only as of the date hereof. We undertake no obligation and do not intend to publicly update or revise any information, forward-looking statements or conclusions contained herein or to reflect new events or circumstances or to correct any inaccuracies that become apparent after the date hereof, whether as a result of new information, future events or otherwise. We assume no liability whatsoever for the occurrence of these forward-looking statements and assumptions.