German online food delivery company Delivery Hero reported stronger than expected growth it its second quarter gross merchandise value, underpinned by higher order volumes.
Its quarterly gross merchandise value or GMV, a common metric for delivery firms measuring the total value of all goods sold, grew 7.4% in constant currency terms to €11.89 billion, beating analysts' €11.57 billion estimate in a company-provided poll.
'Strong' Financial Results
“We have met our goal to deliver strong financial results in line with our 2024 guidance," commented Marie-Anne Popp, interim CFO of Delivery Hero. "Our healthy topline growth continued into Q2 2024, and following an adj. EBITDA uplift of €231m year-on-year, we achieved free cash flow break-even in the first half of 2024.
"These numbers reflect the effectiveness of our business strategy to drive profitable growth, cash generation, and disciplined capital allocation.”
In the MENA region, Delivery Hero's platform business saw a 28% year-on-year increase in GMV, while in Europe, the company reported a double-digit growth in order volume, resulting in a 19% year-on-year GMV increase. In Asia, Delivery Hero's platform business revenue grew by 9% year-on-year, while in the Americas, the platform business achieved adjusted EBITDA break-even in June of this year.
Talabat IPO
Elsewhere, Delivery Hero is preparing an initial public offering (IPO) of its Emirati subsidiary Talabat on the Dubai Stock Exchange in the fourth quarter of this year, it said on Thursday.
The IPO may be pursued through a secondary offering of Delivery Hero shares and the group would retain a majority stake after the listing, it added.
Additional reporting by ESM
