Q3 2023: A Quarter of Significant Growth and Strategic Advancements
In a remarkable showcase of fiscal strength and strategic acumen, Delivery Hero SE, the global leader in local delivery platforms, announced a substantial acceleration in its Gross Merchandise Value (GMV) growth, reaching 9% year-over-year (YoY) in Q3 2023. The company also reported a notable 16% increase in total segment revenue, attributable to effective monetization strategies, including advancements in AdTech, alongside service and subscription fees.
This year’s financial outcomes not only reflect the company’s dynamic market presence but also underscore its commitment to achieving sustainable profitability. Delivery Hero is on a steadfast course to enhance its adjusted EBITDA by over EUR 850 million in the fiscal year 2023, navigating challenges posed by foreign exchange fluctuations and hyperinflation.
Leadership Insights: Fostering Innovation and Operational Excellence
Niklas Östberg, CEO and Co-Founder of Delivery Hero, shared his enthusiasm about the company’s trajectory, stating, “We are super excited by our progress as we drive the business towards positive Free Cash Flow. We doubled down on tech and innovation initiatives, delivering solutions for our customers while also optimizing our operations both on a country, regional, and global level. I’m very grateful to our teams around the world for the strong developments they made this quarter.”
The company has revised its GMV growth forecast for FY 2023, now aiming for the upper range of 5-7%. This revision reflects the company’s confidence in its ongoing growth and market dominance. The financial solidity of Delivery Hero remains robust, further reinforcing its position as a global market leader.
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Future Outlook: A Path Towards Enhanced Profitability
As the company progresses, it anticipates significant margin improvements in countries with profitable platform businesses. These regions are expected to contribute more than EUR 1.3 billion in adjusted EBITDA run-rate by Q4 2023, marking a 30% expansion compared to Q4 2022. Additionally, even in countries currently facing losses, Delivery Hero has observed substantial margin improvements and expects the adjusted EBITDA/GMV margin to reach around -2.2% in Q4 2023, a considerable improvement from -4.8% in the previous year.
Emmanuel Thomassin, CFO of Delivery Hero, commented on the company’s financial trajectory, “After another strong quarter we can confirm that we are on course to reach our full year EBITDA guidance, putting us in a strong position for our long term profitability goals. We have seen positive developments in the Gross Profit margin within both our Platform business and Integrated Verticals. The Americas recorded a Gross Profit margin of close to 10%, while APAC1 saw it grow to more than 10% due to stronger unit economics and improved delivery costs. This will allow us to continue driving our food delivery and Quick Commerce offerings around the world with greater products, service and availability for our customers.”
With these strategic advancements and a clear vision for the future, Delivery Hero SE continues to solidify its position as a global leader in the local delivery industry, setting new benchmarks in innovation, customer service, and operational efficiency.
[1] APAC refers to the Asia segment excluding Woowa Group
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