German online takeaway food company Delivery Hero (DHER.DE) on Wednesday raised its full-year revenue outlook, after it swung to a profit in the first half of the year on accelerating growth.
The Berlin-based company expects total segment revenue to grow around 15% this year, compared with its previous guidance for growth of around 10% in constant currency terms.
After a pandemic-driven boost to growth, Delivery Hero has focused on reaching long-awaited profitability while maintaining growth as investor confidence in the rapidly expanding but mostly unprofitable sector started to wane.
Delivery Hero's stock was up 5.3% in early Frankfurt trade.
The group said its adjusted core operating result (EBITDA) swung to profit in the first six month of the year, from a loss of 323.0 million euros ($354.59 million) in the same period a year earlier and surpassing analysts' expectations of a loss of 5 million euros in a company-compiled consensus. It did not disclose a concrete figure.
Adjusted EBITDA margin on gross merchandise value (GMV) in the second quarter came in at 0.2% on improved cost allocation, the company said.
"The ongoing EBITDA improvements from losses to profits should be taken well by the market and restore investor confidence after a volatile share price" in the past 12 months, analysts at J.P. Morgan wrote in a note to investors.
The company said its quick-commerce Dmarts business, based on centrally located warehouses that cater only to online clients, achieved profitability for the first time in June thanks to volume growth, larger shopping baskets and better cost efficiency. This was ahead of its former guidance for a positive result in the second half of the year.
Revenue rose 16% in constant currency to 2.58 billion euros in the second quarter, slightly above a consensus estimate of 2.50 billion euros.
Overall gross merchandise value (GMV) increased 8% in constant currency to 11.08 billion euros in the quarter, exceeding analysts' estimate of 10.96 billion euros. The group's Asia segment, including its core market South Korea, returned to positive GMV growth of 2% in constant currency.
($1 = 0.9109 euros)
