Delivery Hero rallies in Frankfurt, boosted by quarterly accounts and outlook

(Il Sole 24 Ore Radiocor) - Delivery Hero rebounding strongly on the Frankfurt Stock Exchange (DAX 30 ), buoyed by third-quarter results, expectations of an acceleration in the fourth quarter, driven by the recovery in the Asian market and also by the confirmation of guidance. The positive performance of the food delivery platform's stock added to the +5.7 per cent rise on the eve of the event. The recovery comes after a few stormy sessions that on Monday (-9.7%) sent the stock down to the lowest since February 2024 of EUR 16.66 (a sidereal distance from the record EUR 145 reached during the pandemic in early 2021).

Delivery Hero reported that third-quarter gross merchandise value (Gmv) increased by 7% on a comparable basis (at constant exchange rates and adjusted for inflation) to EUR 12.2 billion. Revenues rose 22% to 3.7 billion, 'driven by the expansion of the group's delivery logistics, Ad-tech, Integrated Verticals and subscription programmes'. The Integrated Verticals business also achieved positive adjusted EBITDA for the first time in the quarter, the company said, 'and is on track to break even for the year'. At the end of the quarter, corporate liquidity stood at EUR 2.2 billion, 'which implies that Delivery Hero's financial position remains solid,' Delivery added. The group reported a strong recovery in October in Korea, paving the way for Gmv growth in Asia and for the entire group in the fourth quarter. "Our investment in technology and our multi-vertical strategy to become a delivery super-app continues to pay off. Artificial intelligence not only helps us work more efficiently globally, but also delivers the best customer experience. Early signs in the fourth quarter are encouraging, especially thanks to the rebound in Korea, and we expect to end the year with a return to growth in Asia and faster growth in the group's Gmv in the final quarter,' commented group ceo and co-founder Niklas Oestberg, quoted in the release. Delivery Hero confirmed its targets for 2025, which include Gmv growth at the top end of the range of 8-10% (+9.4% in the nine months), a 22-24% increase in total revenue on a comparable basis, and an adjusted Ebitda of EUR 900-940 million.

Analysts at JPMorgan described the quarterly report as a "relief", noting that results met expectations in all segments and the operating situation in Korea improved. More critical were the experts at DB, who felt that the quarter's performance was mixed, albeit without any major surprises, but also pointed out that the company had maintained guidance. In recent days, traders note, the stock has been affected by growing market nervousness ahead of the quarterly accounts, against the backdrop of analysts' more cautious assessments for the entire sector. Moreover, press rumours had reported an interest by Uber in the Turkish meal-delivery service Getir, with the risk of increased competition in Turkey, where Delivery is present through the Yemeksepeti platform.