🐂 Not all bull runs are created equal. November’s AI picks include 5 stocks up +20% eachUnlock Stocks

Glovo owner Delivery Hero expects growth at upper end of forecast, posts solid Q3

Published 11/07/2024, 01:46 AM
Updated 11/07/2024, 04:06 AM
© Reuters. The Delivery Hero's logo is pictured at its headquarters in Berlin, Germany, August 18, 2020. REUTERS/Fabrizio Bensch/ File Photo
DHER
-

By Paolo Laudani and Bernadette Hogg

(Reuters) -Delivery Hero said on Thursday it expects annual gross merchandise value (GMV) growth at the upper end of its forecast range, after the German online takeaway food company reported solid growth for the third quarter.

Shares in the company, which owns the Glovo and foodpanda delivery apps, opened 1% higher before trimming some of its gains to trade 0.6% higher at 0859 GMT.

The group now expects its full-year growth in GMV, a common metric for delivery firms measuring the total value of all goods sold, to land at the upper end of its 7%-9% forecast, after a 9% year-on-year rise in the third quarter.

In its Middle-East and Northern-Africa (MENA) region, it posted a 30% growth in GMV. This should bode well for the planned public listing of its lucrative Emirati subsidiary Talabat on the Dubai stock exchange in the fourth quarter, according to analysts at brokerage Stifel.

Delivery Hero reported a GMV of 12.2 billion euros ($13.12 billion) for the quarter, in line with analysts' expectations in a company-provided consensus.

Outside Asia, its main market, GMV rose 25%.

In Asia, where it grew its presence with the acquisition South Korea's largest online food delivery platform Woowa in 2021, it posted a 6.6% fall in GMV.

"If opportunities arise along the way, we're happy to look at it and we're happy to consider but that's not the focus," chief executive Niklas Östberg told Reuters in a call when asked if a revised guidance could lead to more acquisitions.

The company plans to build better in-app ads on its Glovo brand, available in more than 20 countries such as Spain and Italy, to help restaurants to grow their sales, Östberg added.

© Reuters. The Delivery Hero's logo is pictured at its headquarters in Berlin, Germany, August 18, 2020. REUTERS/Fabrizio Bensch/ File Photo

The company, however, said it expects adjusted core earnings to come at the lower end of its 725 million euros-775 million euros guidance.

($1 = 0.9302 euros)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.