Delivery Hero sees higher gross merchandise value in third quarter

(Reuters) -German online takeaway food company Delivery Hero on Tuesday forecast a 7% jump in its third-quarter gross merchandise value (GMV) to 10.6 billion euros ($10.8 billion), compared with the April to June period.

Including Barcelona-headquartered food delivery firm Glovo, in which Delivery Hero owns a majority stake, the group expects its GMV to reach 11.5 billion euros in the three months to Sept. 30.

“Slowdown… what Slowdown? A strong Q3 outlook and positive comments on profitability – upgrades are coming through,” analysts at J.P. Morgan commented the trading update in a note to clients.

The company expects the Asia segment for its platform business, which accounts for nearly three quarters of the group’s GMV, to generate 7 billion euros in the current three-month period, an 8% increase on the quarter. The segment had also generated positive core earnings in the second quarter.

Delivery Hero also reiterated its target to reach profitability for the entire group in 2023.

The widely loss-making food delivery sector was one of the big beneficiaries of the COVID-19 pandemic, but that effect has waned as consumers, faced with soaring inflation, have started to cut back.

In the third quarter of 2021, Delivery Hero had posted a GMV of 9.6 billion euros, a 65% increase year-on-year, boosted by higher demand for food delivery amid coronavirus restrictions.

The Berlin-based firm confirmed its preliminary figures for the second quarter, including an 18% GMV growth and a 38% rise in revenues on the year, and the updated full-year guidance it issued in July.

($1 = 0.9845 euros)

(Reporting by Tristan Chabba and Elena Vardon in Gdansk, editing by Milla Nissi)