Delivery Hero sees 2022 revenue growth as investments pay off

Reuters2022-02-10

Feb 10(Reuters) - German online takeaway food company Delivery Hero said on Thursday it expected its revenue to grow further in 2022, boosted by extensive investments both in food delivery and its rapidly expanding quick commerce business, which aims to deliver goods in as little as 10 to 15 minutes.

The Berlin-based company forecast full-year revenue in a range of 9.5 billion to 10.5 billion euros($10.85 billion to $12 billion), and a negative margin on core profit of 1% to 1.2% for 2022.

The German group, which said in January it expected its food delivery business to break even during the second half of 2022, has invested heavily in its divisions amid a boost to orders during the COVID-19 pandemic, as it seeks to keep rivals at bay in an increasingly competitive e-commerce space.

"The last quarter of 2021 was marked by improved economics and strengthening of leadership in key regions and new verticals," Chief Executive Officer Niklas Oestberg said in a statement.

Delivery Hero's fourth-quarter orders grew 27% to 775.5 million from the same period in 2020, pushing full-year revenue at the upper end of the company's previous forecast of 6.4 billion to 6.7 billion euros.

Shares in the company, which was promoted to German blue-chip index in less than a decade after its founding, were up 1.4% in pre-market indications.

($1=0.8754 euros)

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Comments

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