GLOBAL – Multinational food ordering and delivery company Delivery Hero has revealed it expects its yearly Gross Merchandise Value (GMV) growth at the upper end of its forecast range, after the food delivery company reported a solid Q3 2024 performance.

The company recently updated its full-year expectations, now forecasting a 7-9% year-on-year growth in Gross Merchandise Value (GMV), following a solid 9% increase in the third quarter. GMV, a key metric for delivery companies, indicates the total value of goods sold through the platform.

Regionally, Delivery Hero posted impressive figures in the Middle East and North Africa (MENA), where GMV grew by 30%, enhancing its plans for the upcoming listing of its Talabat subsidiary on the Dubai stock exchange in Q4 2024.

Analysts suggest that Talabat’s market position could attract significant attention, considering the positive momentum in the region.

For the third quarter of 2024, Delivery Hero reported a GMV of €12.2 billion (US$13.12 billion), meeting analysts’ expectations.

While performance outside Asia was strong, with GMV rising 25%, Asia saw a decline of 6.6% in GMV. This decline is partly attributed to increased competition in markets like South Korea, where the company expanded with its acquisition of Woowa in 2021.

CEO Niklas Östberg expressed that the company remains open to acquisitions if opportunities arise but emphasized that this is not the primary focus.

Instead, the company is investing in enhancing in-app advertising on its Glovo platform, which operates in over 20 countries, including Spain and Italy.

Furthermore, Delivery Hero adjusted its earnings forecast, now expecting its adjusted core earnings to land at the lower end of the projected €725-775 million (US$774.6-828 million).

Delivery Hero, the owner of food delivery apps like Glovo and Foodpanda, saw a slight uptick in its shares, which opened 1% higher before stabilizing at 0.6% in early trading.

In other recent developments, the company’s platform business continues to perform well, particularly in MENA, Europe, and Latin America, while its Asian markets are expected to gradually improve in profitability.

Delivery Hero’s commitment to sustainable growth and profitability, alongside its ambitious plans to achieve positive free cash flow in 2024, positions the company for continued expansion.

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