Delivery Hero Releases Preliminary Financial Results for 2023: Sales Growth and Profitability Forecasts

Delivery Hero, the global food delivery service giant, has released its preliminary financial results for the year 2023, a week earlier than planned. The early release comes in response to investor concerns over the company’s asset sales strategy. The results show that Delivery Hero grew its sales in line with its guidance last year and is forecasting stronger profitability in 2024.

The preliminary, unaudited results reveal that Delivery Hero’s revenue for the year 2023 was 10.5 billion euros ($11.3 billion), exceeding the analysts’ expectations of 10 billion euros. The company’s adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) also surpassed expectations, with a total of more than 250 million euros ($269.4 million).

Delivery Hero’s gross merchandise value (GMV), which represents the combined value of overall orders on its platforms, grew by 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. The company’s total segment revenue increased by 15.7% to 3 billion in the fourth quarter and by 15.7% to 11.1 billion euros for the full year.

These figures match the company’s guidance for “around 15% YoY [year-over-year]” growth in 2023. Delivery Hero’s adjusted EBITDA margin was reported at 0.6%. The results were driven by healthy order growth in many of the company’s geographies.

Looking ahead to 2024, Delivery Hero is forecasting group GMV growth of 7-9%, higher than its performance in 2023. The company expects segment revenue growth of between 15% and 17% in full-year 2024 and an adjusted EBITDA of 725 million to 775 million euros. Delivery Hero is also forecasting positive free cash flow for the year.

The company will publish additional preliminary numbers for the fourth quarter in a trading update on February 14, the original date for the release of its financial results.

Delivery Hero’s share price took a hit last week, losing more than 26% of its value, as investors reacted to news surrounding portfolio asset sales. The company announced that it would sell all of its 4.5% stake in British food delivery firm Deliveroo for £76.8 million ($97 million), a value far lower than the price it paid for the shares in 2021. Then, on Friday, Delivery Hero shares sank sharply after a report said the company had ended negotiations to sell certain assets within its Southeast Asian food delivery business Foodpanda to Singapore’s Grab. Delivery Hero denied the report, stating that talks are ongoing.

Delivery Hero is one of the largest food delivery services globally, with more than 2.2 billion users. It competes with the likes of American giant DoorDash, Britain’s Deliveroo, Anglo-Dutch firm Just Eat Takeaway.com, Singaporean company Grab, and Indonesia-based Gojek.

The food delivery industry has seen significant growth in recent years, driven by the convenience and flexibility it offers consumers. The COVID-19 pandemic further accelerated this trend, as more people turned to food delivery services to avoid dining out. Delivery Hero’s strong financial performance in 2023 and its optimistic outlook for 2024 demonstrate the resilience and growth potential of the industry.

In conclusion, Delivery Hero’s preliminary financial results for 2023 show that the company grew its sales in line with its guidance last year and is forecasting stronger profitability in 2024. The results were driven by healthy order growth in many of the company’s geographies, and the company is optimistic about its prospects for the future. The food delivery industry continues to grow, and Delivery Hero is well-positioned to capitalize on this trend.

Delivery Hero’s early release of its preliminary financial results is a strategic move to address investor concerns over its asset sales strategy. The company’s strong financial performance and optimistic outlook for 2024 should help to alleviate these concerns and boost investor confidence. The food delivery industry is expected to continue growing, and Delivery Hero is poised to benefit from this trend.

Delivery Hero’s financial results highlight the importance of adaptability and resilience in today’s business environment. The company has navigated the challenges of the COVID-19 pandemic and the volatility of the stock market to deliver strong financial performance and maintain investor confidence. Delivery Hero’s success serves as an inspiration for businesses in all industries to remain agile and adaptable in the face of uncertainty.

Delivery Hero’s preliminary financial results for 2023 are a testament to the company’s strength and resilience. The company’s ability to grow its sales and profitability despite the challenges of the COVID-19 pandemic and the volatility of the stock market is a remarkable achievement. Delivery Hero’s optimistic outlook for 2024 and its commitment to investor transparency demonstrate the company’s focus on long-term growth and value creation.

Delivery Hero’s financial results also underscore the importance of innovation and disruption in today’s business landscape. The company has disrupted the traditional food delivery industry by offering convenience, flexibility, and a wide range of options to consumers. Delivery Hero’s success has inspired a wave of innovation and disruption in other industries, from ride-hailing to e-commerce.

In conclusion, Delivery Hero’s preliminary financial results for 2023 are a significant milestone for the company and the food delivery industry as a whole. The results demonstrate the company’s strength, resilience, and adaptability in the face of challenges and uncertainty. Delivery Hero’s optimistic outlook for 2024 and its commitment to investor transparency are key drivers of investor confidence and long-term value creation. The company’s success serves as an inspiration for businesses in all industries to remain agile, innovative, and focused on delivering value to customers and investors.