Delivery Hero grows by 8 % as Q1 profit hits $2.83 billion

 

BERLIN – German food delivery company Delivery Hero lifted its full-year revenue forecast as it reported strong second-quarter earnings on Wednesday.

The Berlin-based company said revenue in the quarter increased to €2.58 billion ($2.83 billion) from €2.32 billion in the prior-year quarter.

The company said it achieved a positive adjusted core operating result (EBITDA) in the first half of the year, after a loss in the same six months last year.

Gross merchandise value (GMV) jumped 18% year-on-year when Asian markets are excluded, Delivery Hero said. Overall growth was 8%.

Looking forward, the company now expects full-year total segment revenue to increase 15% year-on-year in constant currency terms, up from from the previous outlook of 10% growth.

Segment revenue is adjusted for marketing spend such as vouchers and discounts, which are common tactics in the industry to retain and attract customers.

EBITDA was forecast to increase significantly in the second half of the year. Gross merchandise value is expected to increase by another 5% to 7%.

For the year as a whole, Delivery Hero said the goal was to reach an operating profit margin of at least 0.5% measured against the gross merchandise value.

The group had already achieved an operating margin of 0.2% in the second quarter, it said.