Delivery Hero Quarterly Sales Miss Estimates as Asia Unit Lagged

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.

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 saw a 7% decline in gross merchandise value in the period in Asia, citing re-openings in parts of the region, including Korea, following prolonged lockdowns.

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 27% so far this year through Wednesday.

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