Delivery Hero (DHER) H1 2024 earnings summary

Executive summary

• Achieved strong revenue growth and significant improvement in adjusted EBITDA, with group GMV up 7% year-over-year in Q2 2024 and 6.3% in H1 2024, and a €231m uplift in adjusted EBITDA to €240m in H1 2024, driven by platform and Integrated Verticals performance.

• Total segment revenues grew 20% year-over-year in Q2 2024, outpacing GMV, with strong contributions from higher commissions, Dmart, ad tech, and subscription fees.

• Achieved positive operating cash flow of €103m and free cash flow break-even in H1 2024, with liquidity of €1.8bn in cash and equivalents at period end.

• Preparing for a minority IPO of Talabat in Q4 2024 to strengthen local relationships and position for long-term success in MENA.

• Entered agreement to sell Foodpanda Taiwan and DH Stores Taiwan to Uber for $950m, with closing expected in H1 2025.

Financial highlights

• H1 2024 total segment revenue grew 19% year-over-year to €6bn, with GMV at €23.7bn, up 6% year-over-year.

• Adjusted EBITDA for H1 2024 reached €240m, a year-on-year uplift of €231m.

• Operating cash flow improved by €280m, turning positive at €103m.

• Free cash flow broke even in H1, with further generation expected in H2.

• Gross profit margin expanded to 7.8% in Q2 2024.

Outlook and guidance

• Reiterated full-year 2024 guidance: GMV growth of 7–9% and total segment revenue growth of 18–21% year-over-year, both in constant currency and excluding hyperinflation effects.

• Adjusted EBITDA guidance for 2024 is €725–775m, including extra investments in South Korea.

• Positive free cash flow expected for the full year.

• Long-term ambitions include >€200bn GMV and 5–8% adj. EBITDA/GMV margin by 2030.

• Guidance subject to considerable uncertainty due to industry dynamics and potential competitive actions.