Delivery Hero reverses losses to climb 5% after reporting sales growth in line with targets
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Delivery Hero shares sank Monday morning, extending losses from last week, as investors reacted to preliminary financial results released by the company.
Shares of Delivery Hero climbed 5.6% by the market close were down 8% at one stage during the morning session before paring losses to trade 4% lower by 11 a.m. London time.
The financials, which were unaudited and released a week early, show the Germany-based company grew sales in line with its guidance last year and is forecasting stronger profitability in 2024.
Delivery Hero's decision to share its numbers early were a bid by the company to push back on investor flight last week over the food delivery giant's asset sales strategy.
Here's how the company did:
Revenue: 10.5 billion euros ($11.3 billion) in annual 2023 revenue, versus 10 billion euros expected by analysts, according to data from LSEG, formerly known as Refinitiv.
Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization): Delivery Hero says adjusted EBITDA «exceeded» 250 million euros. Analysts had forecast adjusted EBITDA of 254.3 million euros, per LSEG
Delivery Hero said group GMV (gross merchandise value), which is the combined value of overall orders on its platforms, grew 6.7% year over year to 12.3 billion euros in the fourth quarter of 2023, and by 6.8% to 47.6 billion euros in full-year 2023.
Total segment revenue increased 15.7% year on year to 3 billion euros in the fourth quarter. Full-year sales came in at 11.1 billion euros, up 15.7%.
That matches company guidance for «around 15% YoY [year-over-year]» growth in 2023.
Adjusted EBITDA, which is Delivery Hero's measure of profitability, totaled more than 250 million euros in full-year 2023, Delivery Hero
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