Delivery Hero beats growth estimates for first quarter, confirms annual guidance
Delivery Hero’s Q1 Performance and Outlook
By Ozan Ergenay
April 30 (Reuters) - German online takeaway food company Delivery Hero on Thursday reported a higher than expected quarterly gross merchandise value (GMV) and forecast its annual earnings to be at the upper end of its previous guidance.
Quarterly Results and Growth Metrics
The company's GMV, a common metric for delivery firms measuring the total value of all goods sold, grew 8.8% to 12.5 billion euros ($14.6 billion) in the first quarter, above analysts' average estimate of 12.3 billion euros in a company-compiled poll.
Management Commentary on Performance
"We've had a strong start to the year and our targeted investments in Korea, Middle East and North Africa (MENA) and quick commerce are yielding results. This gives us confidence in achieving adjusted EBITDA in the upper half of our guidance range for 2026," CFO Marie-Anne Popp said in a statement.
Market Reaction
Shares in Delivery Hero, which have fallen 15.8% since the start of the year with Wednesday's close, were indicated up 1% in early Frankfurt trade.
Strategic Initiatives and Business Expansion
Transition to an "Everyday App"
The company said the quarterly results have been supported by its transition into an "Everyday App", offering a range of everyday items rather than just food, and a continued expansion of its quick commerce business.
CEO’s Vision
"By building a delivery platform that spans food, groceries and other household essentials, we capture more of our customers' needs to become the app they reach for every day," CEO Niklas Oestberg said.
Capital Allocation and Strategic Review
Last year, Delivery Hero said it was reviewing capital allocation measures and evaluating strategic options, as it came under pressure from several large shareholders to carry out a strategic review.
Oestberg said the review was progressing with a focus on "delivering high, profitable growth."
Annual Guidance and Financial Expectations
The German company confirmed its full-year guidance for 2026, expecting annual adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of between 910 million to 960 million euros.
($1 = 0.8576 euros)
(Reporting by Ozan Ergenay in Gdansk, editing by Matt Scuffham)
