Delivery Hero sees higher gross merchandise value in Q3

Aug 16 (Reuters) – German online takeaway company Delivery Hero on Tuesday forecast a 7% increase in gross merchandise value (GMV) in the third quarter to 10.6 billion euros ($10.8 billion). dollars), compared to the period from April to June.

Including Barcelona-based food delivery company Glovo, in which Delivery Hero has a majority stake, the group expects its GMV to reach €11.5 billion in the three months to September 30. .

“Slowdown…what a slowdown? Good third quarter outlook and positive profitability feedback – upgrades underway,” JP Morgan analysts commented in a note to clients.

The company expects the Asia segment of its platforms business, which accounts for almost three-quarters of the group’s GMV, to generate €7 billion in the current three-month period, an increase of 8%. compared to the quarter. The segment had also generated positive core earnings in the second quarter.

Delivery Hero also reiterated its objective of achieving profitability for the entire group in 2023.

The largely loss-making food delivery sector has been one of the big beneficiaries of the COVID-19 pandemic, but that effect has faded as consumers, faced with runaway inflation, have started to cut their expenses.

In Q3 2021, Delivery Hero posted GMV of €9.6 billion, a 65% year-over-year increase, driven by increased demand for food delivery amid food restrictions. coronavirus.

The Berlin-based company confirmed its preliminary figures for the second quarter, including 18% GMV growth and a 38% increase in revenue year-on-year, as well as updated full-year guidance that it published in July. ($1 = 0.9845 euros) (Report by Tristan Chabba and Elena Vardon in Gdansk, editing by Milla Nissi)