Delivery Hero hikes 2021 outlook on strong Q2

  • The company, which operates in about 50 countries across Europe, Latin, America, Asia, the Middle East and North Africa, now sees revenues in a range of 6.4 billion to 6.7 billion euros ($7.52-$7.87 billion)for the year compared to earlier expectations of 6.1 billion to 6.6 billion euros.
  • The Berlin-based group, which said in April its focus on expansion could mean a longer wait for profits, has invested in food and rapid deliveries of groceries and household items, which have spiked during the coronavirus crisis.

German online takeaway food firm Delivery Hero raised its 2021 outlook on Thursday, after more than doubling quarterly revenues, as its fast-growing quick commerce service that aims to deliver goods in as little as 10 to 15 minutes gains traction.

The company, which operates in about 50 countries across Europe, Latin, America, Asia, the Middle East and North Africa, now sees revenues in a range of 6.4 billion to 6.7 billion euros ($7.52-$7.87 billion)for the year compared to earlier expectations of 6.1 billion to 6.6 billion euros.

The Berlin-based group, which said in April its focus on expansion could mean a longer wait for profits, has invested in food and rapid deliveries of groceries and household items, which have spiked during the coronavirus crisis.

"We continue to see solid performance across all business segments, with increasingly exciting developments in quick commerce," Chief Financial Officer Emmanuel Thomassin said in a statement.

Delivery Hero also raised its 2021 forecast for gross merchandise volume (GMV) to a range of 33 to 35 billion from 31 to 34 billion euros, while it now expects a negative margin on adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of minus 2% compared to previously forecast negative 1.5% to 2.0%.

The company said quarterly revenues came in at 1.55 billion euros compared to 757.5 million euros in the year-ago period.

Source: Read Full Article