Delivery Hero: delivered on its FY-2023 targets

Berlin / DE. (dhh) Delivery Hero Holding S.E., the world’s leading local delivery platform, released its Q4-2023 results, reaffirming that it had hit all of its ambitious targets for Q4 and FY-2023. The Company saw a GMV growth of 7 percent YoY and Total Segment Revenue growth of 16 percent YoY in Q4, as well as reporting an adj. Ebitda margin of 1.1 percent in H2 20231. This implies an adj. Ebitda uplift of more than EUR 870 million in FY-2023. The Group also confirmed that it had reached Free Cash Flow Break-even during H2 20231.

CEO and Co-Founder Niklas Östberg: «2023 was a landmark year for Delivery Hero as we saw our commitment to a rational growth strategy pay off. We have proven that we can significantly improve profits and cash flows while building on our category leadership. Thanks to the team for all of the great progress we have made towards our goals.»

Platform business sees unprofitable markets mature

Detailing the profitability trajectory, Delivery Hero announced that around 75 percent of the Platform business is profitable in FY-2023, close to 10 percentage points above 2022, with the profitable Platform business generating an annualized adj. Ebitda of more than EUR 1.3 billion in Q4 2023. Meanwhile, the adj. Ebitda margin of the unprofitable Platform business is performing ahead of expectations. The majority of these markets are at an early stage and experiencing significant growth, with the Company expecting them to move into profitability in the coming quarters.

Dmart profitability trajectory continues

Delivery Hero continued doubling down on the customer value proposition of its Dmarts, prioritizing improved choice by increasing inventory (SKUs) across all units. With this emphasis on consumer experience, the Company saw the continuation of the profitability trajectory of its Integrated Verticals segment, which is predominantly made up of Dmarts. In particular, negative adj. Ebitda margin improved by approximately 60 percent YoY during Q4 2023, demonstrating a clear path to sustainable profitable growth.

CFO Emmanuel Thomassin: «We started 2024 in a strong position to achieve our ambitious adjusted Ebitda and Free Cash Flow targets. We are confident we will deliver substantial future cash flows that will exceed upcoming debt maturities.»

Group confirms 2024 guidance

With this quarterly release, Delivery Hero confirms the guidance given in its preliminary results, which were released on 5 February 2024. Most significantly, the Group expects an adj. Ebitda of EUR 725-775 million and positive Free Cash Flow in FY-2024.

GMV	7-9 percent YoY
Total Segment Revenue	15-17 percent YoY
Adjusted Ebitda	EUR 725-775 million
Free Cash Flow	Positive