Delivery Hero (DHER) H1 2024 earnings summary

Executive summary

• Achieved strong Q2 2024 results with 7% year-on-year GMV growth in constant currency and 20% revenue growth, with GMV reaching €23.7 billion and segment revenue €6.04 billion, despite a challenging start in Korea.

• Adjusted EBITDA surged to €240.5 million in H1 2024, a €231 million year-over-year uplift, with positive operating cash flow of €103 million and free cash flow break-even.

• Majority of business segments delivered double-digit order and revenue growth, with notable profitability improvements, especially in MENA and Europe.

• Announced preparations for Talabat IPO in Q4 2024, highlighting strong growth and profitability in the MENA region.

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

Financial highlights

• H1 2024 total segment revenue grew 19% year-over-year to €6 billion, outpacing GMV, with gross profit margin at 7.8% in Q2.

• Adjusted EBITDA for H1 2024 reached €240 million, up from €9 million in H1 2023.

• Operating cash flow improved by €280 million, turning positive at €103 million; free cash flow break-even achieved in H1.

• Ended H1 with €1.8 billion in cash and cash equivalents.

• Net result improved to negative €720.2 million from negative €772.1 million year-over-year.

Outlook and guidance

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

• Adjusted EBITDA guidance for 2024 set at €725–775 million, including extra investments in South Korea.

• Expect continued gross profit margin expansion and positive free cash flow for the full year.

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

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