Delivery Hero SE missed estimates by analysts for how much customers spent on the platform in the first quarter as the impact of some Covid re-openings in parts of Asia weighed on results.
(Bloomberg) — Delivery Hero SE missed estimates by analysts for how much customers spent on the platform in the first quarter as the impact of some Covid re-openings in parts of Asia weighed on results.
The Berlin-based company’s gross merchandise value grew 1.5% from a year earlier to €11.2 billion ($12.4 billion) in the period, it said in a statement Thursday. That compares with an average estimate of €11.96 billion among analysts surveyed by Bloomberg.
Shares rose 2.2% to €33.54 at 11:14 a.m. in Frankfurt.
Delivery Hero rivals Just Eat Takeaway.com NV and Deliveroo Plc previously reported drops in orders last quarter as high inflation pushed customers to cut back on meal deliveries. The industry has struggled to show investors it can be profitable after enjoying rapid growth during the pandemic.
Delivery Hero’s gross merchandise value fell 7% in the period in Asia, its largest market. The decline was due to re-openings in parts of the region, including Korea, following lockdowns, it said. Other regions posted an average growth rate of 16%.
“This is a tough environment also in Europe,” Chief Executive Officer Niklas Oestberg said in an interview. “The fact that we still managed to grow there 15%, I think still shows that you can grow nicely even under very tough circumstances.”
Delivery Hero updated its 2023 guidance after failing to do so in its fourth-quarter results. It forecast gross merchandise value and revenue will grow by 5% to 7% this year in constant currencies. The company aims to reach free cash flow break-even in the second half of the year.
Delivery Hero shares have fallen about 25% so far this year.
(Updates with CEO comment, share price.)
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