Germany’s Delivery Hero hikes 2023 revenue guidance

(Reuters) -German online takeaway food company Delivery Hero on Wednesday raised its full-year revenue outlook, after it swung to a profit in the first half of the year on accelerating growth.

The Berlin-based company expects total segment revenue to grow around 15% this year, compared with its previous guidance for growth of around 10% in constant currency terms.

After a pandemic-driven boost to growth, Delivery Hero has focused on reaching long-awaited profitability while maintaining growth as investor confidence in the rapidly expanding but mostly unprofitable sector started to wane.

The group said its adjusted core operating result (EBITDA) swung to profit in the first six month of the year, from a loss of 323.0 million euros in the same period a year earlier and surpassing analysts’ expectations of a loss of 5 million euros in a company-compiled consensus. It did not disclose a concrete figure.

Adjusted EBITDA margin on gross merchandise value (GMV) in the second quarter came in at 0.2% on improved cost allocation, the company said.

Revenue rose 16% in constant currency to 2.58 billion euros in the second quarter, slightly above consensus estimate of 2.50 billion euros.

Delivery Hero’s stock was up 3.6% in early Frankfurt trade.

(Reporting by Linda Pasquini and Anna Mackenzie in Gdansk; Editing by Himani Sarkar and Conor Humphries)