Delivery Hero Achieves Its Fiscal Year 2023 Objectives

Delivery Hero Delivers Strong Performance in Fiscal Year 2023

Delivery Hero SE (“Delivery Hero” or “the Company”), the world’s leading local delivery platform, has announced the successful execution of its growth strategy in fiscal year 2023, with a sharp focus on profitability, cash generation, and disciplined capital allocation. The company fully achieved its FY 2023 guidance, with an adjusted EBITDA reaching EUR 253.3 million and achieving Free Cash Flow break-even during the second half of 2023. By the end of FY 2023, Delivery Hero maintained cash and cash equivalents amounting to EUR 1.7 billion.

Outlook for 2024

For the upcoming year, Delivery Hero anticipates a GMV growth of 7-9% YoY, Total Segment Revenue growth of 15-17% YoY, an adjusted EBITDA of EUR 725-775 million, and positive Free Cash Flow. The company aims to generate substantial future cash flows that will surpass upcoming debt maturities.

Performance Highlights

In its Q4 2023 results release, Delivery Hero reaffirmed its achievement of all ambitious targets for both Q4 and FY 2023. The company experienced a GMV growth of 7% YoY and Total Segment Revenue growth of 16% YoY in Q4, with an adjusted EBITDA margin of 1.1% in H2 2023. This translated to an adjusted EBITDA uplift of over EUR 870 million for FY 2023. Delivery Hero also confirmed reaching Free Cash Flow Break-even during H2 2023.

Niklas Östberg, CEO and Co-Founder of Delivery Hero, expressed satisfaction with the company’s performance, stating, “2023 was a landmark year for Delivery Hero as we saw our commitment to a rational growth strategy pay off.” He attributed the success to the team’s dedication towards achieving their goals.

Profitability Trajectory

Delivery Hero reported that approximately 75% of its Platform business was profitable in FY 2023, marking a significant improvement from 2022. The profitable Platform business generated an annualized adjusted EBITDA of more than EUR 1.3 billion in Q4 2023. The company expects unprofitable markets within the Platform business to transition into profitability in the coming quarters.

Continued Growth in Dmarts

Delivery Hero emphasized the growth trajectory of its Dmarts, focusing on improving customer experience by increasing inventory across all units. The profitability trajectory of its Integrated Verticals segment, primarily consisting of Dmarts, showed positive signs, with a notable improvement in negative adjusted EBITDA margin by approximately 60% YoY during Q4 2023.

Emmanuel Thomassin, CFO of Delivery Hero, expressed confidence in the company’s ability to achieve ambitious targets for adjusted EBITDA and Free Cash Flow in 2024, stating, “We are confident we will deliver substantial future cash flows that will exceed upcoming debt maturities.”

Confirmation of Guidance

Delivery Hero confirms its previously given guidance for FY 2024, with expectations of an adjusted EBITDA ranging from EUR 725-775 million and positive Free Cash Flow.

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