Earnings Release • Feb 9, 2023
Earnings Release
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Note: YoY growth rates in red are reported currency and in black are constant currency. From Q1 2021 onwards, all values include Glovo on a pro-forma basis. 1. On a constant currency basis, applying the average monthly FX rate during Q3 2022 to Q4 2022
GMV growth of 9% YoY and Total Segment Revenue growth of 21% YoY despite COVID reopening effects in Asia and hyperinflation adjustments in Argentina
High margin AdTech business grew revenues to a run-rate of >€750m in Q4 2022
Adj. EBITDA/GMV margin uplift from -3.3% in Q4 2021 to -0.3% in Q4 2022 for the Group (incl. Glovo) Adj. EBITDA of €56m in Q4 2022 in the Platform business (incl. Glovo)
Integrated Verticals adj. EBITDA loss of €345m in FY 2022 better than guidance of €380m to €400m
Finished the year with strong cash balance of €2.4bn
| FY 2022 Guidance and Outcome | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Metrics | Guidance | Outcome | |||||||
| GMV | Lower end of €44.7 - €46.9bn |
€44.6bn (€44.9bn on CC1 basis) |
|||||||
| Total Segment Revenue | Lower end of €9.8 - €10.4bn |
€9.6bn (€9.6bn on CC1 basis) |
|||||||
| Adj. EBITDA | (1.4)% - (1.5)% of GMV |
(1.4)% of GMV |
|||||||
| of which: | |||||||||
| • Platform business (excl. Glovo) |
Positive adj. EBITDA | €36m | |||||||
| Integrated Verticals (excl. Glovo) • |
Negative €380 to €400m | Negative €345m | |||||||
| • Glovo |
Up to negative €300m | Negative €304m | |||||||
| • Platform business incl. Glovo in Q4 2022 |
Below the mid-point of €40 to €120m | €56m |
Note: YoY growth rates in red are reported currency and in black are constant currency.
MENA revenues, adj. EBITDA, Gross Merchandise Value (GMV) as well as the respective growth rates are impacted by operations in Lebanon and Turkey qualifying as hyperinflationary economies according to IAS 29. In Q4 2022, GMV & revenues have been retrospectively adjusted with a total impact of -€25.3m and -€4.9m, respectively.
Note: YoY growth rates in red are reported currency and in black are constant currency The European Platform financials presented on this slide include Glovo on a Like-for-Like basis as if Glovo would have been acquired on 1 January 2021
Note: YoY growth rates in red are reported currency and in black are constant currency.
Americas revenues, adj. EBITDA, Gross Merchandise Value (GMV) as well as the respective growth rates are impacted by the Argentine operations qualifying as hyperinflationary economy according to IAS 29. In Q4 2022 GMV and Segment Revenue have been retrospectively adjusted with a total impact of -€134.1m and -€34.8m, respectively.
Note: YoY growth rates in red are reported currency and in black are constant currency. Integrated Verticals revenues, adj. EBITDA, Gross Merchandise Value (GMV) as well as the respective growth rates are impacted by operations in Argentina and Turkey qualifying as hyperinflationary economies according to IAS 29. In Q4 2022, GMV & revenues have been retrospectively adjusted with a total impact of -€1.5m and -€11.7m, respectively. The Integrated Verticals business includes Glovo on a Like-for-Like basis as if Glovo would have been acquired on 1 January 2021
Voucher intensity (incl. Glovo) continued to decline to 1.9% compared to 2.0% in Q3 2022 (as % of GMV)
Voucher costs correspond to marketing initiatives to incentivize the acquisition of new users or the retention of existing users
1. Contribution margin relates to Platform business and includes the costs of the physical delivery of the order as well as the transmission and support costs of the order (i.e. payment costs, dispatching costs, customer support). The contribution margin shown above differs from IFRS gross profit, because the former excludes certain non-commission revenue like advertising revenues, whereas the latter excludes i.e. customer support costs, bad debt expenses
in €bn1
▪ Our top 15 markets represent >80% of our current GMV and will continue to show healthy GDP growth in both 2023 (+2.2%) and 2024 (+2.9%)
Source: International Monetary Fund (October 2022 and January 2023). For 2024, data also sourced from the European Commission, Statista, Trading Economics and World Bank. 1. Management estimates based on publicly available data
| (in % of GMV) | FY 2022 | FY 2023 | Long-term range | Comments |
|---|---|---|---|---|
| Gross Profit | 6.0% | 10% to 13% | Driven by pricing, advertising, order stacking and ▪ improving profitability of Dmarts |
|
| Marketing | (3.2)% | < (3)% | High focus on improved marketing efficiency while continuing ▪ to grow at scale |
|
| Opex and others | (4.2)% | < (3)% | ▪ Top-line growth combined with strict cost control to drive operating leverage |
|
| Adj. EBITDA | (1.4)% | >0.5% | 5% to 8% | ▪ Best-in-class markets already generating 5-7% Adj. EBITDA (as % GMV) |
| Capex | (0.6)% | stable | ~(0.3)% | Stable in FY 2023 due to office expansion in several countries. ▪ Long-term capex lower for POS devices, Dmarts and properties |
| Change in Working Capital |
small inflow | small inflow | small inflow | ▪ Positive cash generation as business scales driven by active Working Capital management |
| Lease payments | (0.3)% | stable | ~(0.2)% | Growth at slower rate vs. GMV ▪ |
| Taxes | (0.2)% | (0.9)% to (1.9)% | Long-term cash tax rate of ~25% corresponds to (0.9) to (1.9)% ▪ of GMV |
|
| Free Cash Flow | negative | Break-even during H2 2023 |
3% to 6% | ▪ Highly attractive long-term cash conversion |
| Share-based comp. (SBC) | (0.8)% | stable | ≤ (0.8)% | Growth at slower rate vs. GMV ▪ |
Impacts: improve increase
Figures for FY 2022 include Glovo on a pro-forma basis. Cash flow items based on full year management estimates Gross profit is based on management accounts and differs from IFRS gross profit
By 2030, we plan to grow our GMV substantially, invest in tech & innovation to further expand our leadership as the #1 delivery player globally, and achieve highly attractive margins and cash flows
| in €m |
2021 | 2022 | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Q 1 |
Q 2 |
H 1 |
Q 3 |
Q 4 |
F Y |
Q 1 |
Q 2 |
H 1 |
Q 3 |
Q 4 |
F Y |
|||
| Delivery Hero Group | ||||||||||||||
| GMV | 8,352.4 | 8,991.3 | 17,343.7 | 10,197.7 | 10,433.5 | 37,974.8 | 11,035.4 | 10,776.0 | 21,811.4 | 11,449.4 | 11,353.7 | 44,614.5 | ||
| % YoY Growth (RC) | - | - | - | - | - | - | 32.1% | 19.8% | 25.8% | 12.3% | 8.8% | 17.5% | ||
| % YoY Growth (CC) | - | - | - | - | - | - | - | - | - | 7.6% | 7.9% | - | ||
| Total Segment Revenue | 1,503.3 | 1,706.6 | 3,210.0 | 1,952.5 | 2,100.1 | 7,262.5 | 2,231.3 | 2,325.2 | 4,556.5 | 2,498.7 | 2,534.5 | 9,589.7 | ||
| % YoY Growth (RC) | - | - | - | - | - | - | 48.4% | 36.2% | 41.9% | 28.0% | 20.7% | 32.0% | ||
| % YoY Growth (CC) | - | - | - | - | - | - | - | - | - | 20.3% | 17.6% | - | ||
| Intersegment consolidation1 | (18.2) | (36.2) | (54.4) | (38.0) | (42.8) | (135.2) | (46.2) | (49.2) | (95.3) | (53.8) | (50.7) | (199.8) | ||
| Adj. EBITDA | (469.1) | (1,087.3) | (479.3) | (623.6) | ||||||||||
| EBITDA Margin % (GMV) | -2.7% | -2.9% | -2.2% | -1.4% | ||||||||||
| Asia | ||||||||||||||
| GMV | 5,129.4 | 5,588.6 | 10,718.0 | 6,659.9 | 6,529.2 | 23,907.0 | 6,948.7 | 6,489.8 | 13,438.6 | 6,804.5 | 6,667.3 | 26,910.4 | ||
| % YoY Growth (RC) | 83.2% | 68.2% | 75.0% | 72.1% | 40.1% | 63.1% | 35.5% | 16.1% | 25.4% | 2.2% | 2.1% | 12.6% | ||
| % YoY Growth (CC) | 88.3% | 71.0% | 78.9% | 70.0% | 40.8% | 64.4% | 34.9% | 13.7% | 23.8% | -0.7% | 3.4% | 11.4% | ||
| Segment Revenue | 620.1 | 720.2 | 1,340.4 | 853.7 | 876.6 | 3,070.7 | 928.0 | 937.8 | 1,865.8 | 970.1 | 967.7 | 3,803.6 | ||
| % YoY Growth (RC) | 113.2% | 84.2% | 96.6% | 89.7% | 61.8% | 83.5% | 49.7% | 30.2% | 39.2% | 13.6% | 10.4% | 23.9% | ||
| % YoY Growth (CC) | 121.5% | 90.2% | 103.5% | 88.4% | 60.6% | 85.6% | 46.7% | 25.4% | 35.3% | 8.6% | 10.6% | 20.8% | ||
| Adj. EBITDA | (202.2) | (396.6) | (80.5) | |||||||||||
| EBITDA Margin % (GMV) | -1.9% | -1.7% | -0.6% | |||||||||||
| MENA | ||||||||||||||
| GMV | 1,537.7 | 1,617.3 | 3,155.0 | 1,763.4 | 1,837.5 | 6,755.9 | 1,932.4 | 2,015.0 | 3,947.5 | 2,260.6 | 2,334.2 | 8,542.3 | ||
| % YoY Growth (RC) | 60.7% | 96.7% | 77.4% | 46.2% | 36.1% | 55.8% | 25.7% | 24.6% | 25.1% | 28.2% | 27.0% | 26.4% | ||
| % YoY Growth (CC) | 83.2% | 123.8% | 102.0% | 52.0% | 38.9% | 68.4% | 18.4% | 13.1% | 15.7% | 13.6% | 17.6% | 15.7% | ||
| Segment Revenue | 325.5 | 359.3 | 684.9 | 418.5 | 459.6 | 1,562.9 | 491.1 | 514.9 | 1,006.0 | 594.1 | 618.3 | 2,218.4 | ||
| % YoY Growth (RC) | 60.9% | 116.6% | 86.0% | 70.0% | 64.2% | 74.8% | 50.9% | 43.3% | 46.9% | 42.0% | 34.5% | 41.9% | ||
| % YoY Growth (CC) | 79.4% | 142.4% | 107.8% | 74.2% | 63.2% | 84.6% | 41.3% | 28.6% | 34.6% | 23.9% | 22.8% | 28.3% | ||
| Adj. EBITDA | 65.0 | 105.7 | 40.1 | |||||||||||
| EBITDA Margin % (GMV) | 2.1% | 1.6% | 1.0% |
Pro forma financial information includes Woowa and Glovo and excludes Delivery Hero Korea from 1 January 2021 onwards respectively. The Woowa, Delivery Hero Korea and Glovo transactions closed on 4 March 2021, 29 October 2021 and 4 July 2022 respectively. The pro forma financial information reflects Glovo group based on Spanish GAAP with selected adjustments in accordance with Delivery Hero accounting guidelines. Prior period adjustments are excluded from the pro forma financial information presented. For Group, MENA, Americas and Integrated Verticals, revenues, adj. EBITDA, Gross Merchandise Value (GMV) as well as the respective growth rates are impacted by the Argentine, Lebanese and/or Turkish operations qualifying as hyperinflationary economies according to IAS 29.
RC = Reported Currency / CC = Constant Currency.
| 2021 | 2022 | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| in €m |
Q 1 |
Q 2 |
H 1 |
Q 3 |
Q 4 |
F Y |
Q 1 |
Q 2 |
H 1 |
Q 3 |
Q 4 |
F Y |
|
| Europe | |||||||||||||
| GMV | 1,265.1 | 1,321.1 | 2,586.3 | 1,260.9 | 1,506.8 | 5,354.0 | 1,596.1 | 1,596.7 | 3,192.9 | 1,604.7 | 1,772.8 | 6,570.4 | |
| % YoY Growth (RC) |
- | - | - | - | - | - | 26.2% | 20.9% | 23.5% | 27.3% | 17.7% | 22.7% | |
| % YoY Growth (CC) |
- | - | - | - | - | - | - | - | - | 27.9% | 19.2% | - | |
| Segment Revenue | 282.6 | 302.5 | 585.1 | 285.3 | 322.2 | 1,192.6 | 320.5 | 329.5 | 650.0 | 312.8 | 356.3 | 1,319.1 | |
| % YoY Growth (RC) |
- | - | - | - | - | - | 13.4% | 8.9% | 11.1% | 9.6% | 10.6% | 10.6% | |
| % YoY Growth (CC) |
- | - | - | - | - | - | - | - | - | 10.3% | 12.6% | - | |
| Adj. EBITDA |
(128.2) | (317.4) | (159.3) | ||||||||||
| EBITDA Margin % (GMV) | -5.0% | -5.9% | -5.0% | ||||||||||
| Americas | |||||||||||||
| GMV | 420.1 | 464.3 | 884.4 | 513.4 | 559.9 | 1,957.8 | 558.1 | 674.4 | 1,232.5 | 779.6 | 579.4 | 2,591.4 | |
| % YoY Growth (RC) |
159.2% | 86.1% | 114.9% | 70.4% | 53.9% | 81.8% | 32.8% | 45.3% | 39.4% | 51.8% | 3.5% | 32.4% | |
| % YoY Growth (CC) |
172.6% | 90.9% | 123.0% | 71.8% | 54.0% | 85.4% | 31.0% | 40.1% | 35.8% | 44.5% | -2.8% | 27.0% | |
| Segment Revenue | 107.0 | 119.9 | 226.9 | 131.9 | 150.7 | 509.6 | 149.3 | 177.9 | 327.1 | 202.2 | 152.3 | 681.6 | |
| % YoY Growth (RC) |
182.8% | 109.6% | 138.8% | 82.1% | 67.7% | 98.0% | 39.4% | 48.4% | 44.2% | 53.3% | 1.1% | 33.8% | |
| % YoY Growth (CC) |
196.7% | 114.7% | 147.4% | 83.4% | 67.9% | 101.6% | 37.6% | 43.3% | 40.6% | 45.7% | -5.2% | 28.4% | |
| Adj. EBITDA |
(80.2) | (157.5) | (80.0) | ||||||||||
| EBITDA Margin % (GMV) | -9.1% | -8.0% | -6.5% | ||||||||||
| Integrated Verticals |
|||||||||||||
| GMV | 197.3 | 259.2 | 456.5 | 318.8 | 359.3 | 1,134.6 | 426.1 | 456.6 | 882.6 | 496.3 | 520.9 | 1,899.9 | |
| % YoY Growth (RC) |
- | - | - | - | - | - | 116.0% | 76.2% | 93.4% | 55.7% | 45.0% | 67.5% | |
| % YoY Growth (CC) |
- | - | - | - | - | - | - | - | - | 46.1% | 40.8% | - | |
| Segment Revenue | 186.3 | 240.8 | 427.2 | 300.9 | 333.7 | 1,061.9 | 388.6 | 414.3 | 802.9 | 473.3 | 490.6 | 1,766.8 | |
| % YoY Growth (RC) |
- | - | - | - | - | - | 108.5% | 72.0% | 88.0% | 57.3% | 47.0% | 66.4% | |
| % YoY Growth (CC) |
- | - | - | - | - | - | - | - | - | 47.8% | 42.9% | - | |
| Adj. EBITDA |
(123.4) | (321.4) | (199.6) | ||||||||||
| EBITDA Margin % (GMV) | -27.0% | -28.3% | -22.6% |
GMV in the Integrated Verticals segment is accounted for in the respective regional Platform segments. In the table above it is shown in the Integrated Verticals segment for illustrative purposes only
Pro forma financial information includes Woowa and Glovo and excludes Delivery Hero Korea from 1 January 2021 onwards respectively. The Woowa, Delivery Hero Korea and Glovo transactions closed on 4 March 2021, 29 October 2021 and 4 July 2022 respectively. The pro forma financial information reflects Glovo group based on Spanish GAAP with selected adjustments in accordance with Delivery Hero accounting guidelines. Prior period adjustments are excluded from the pro forma financial information presented. For Group, MENA, Americas and Integrated Verticals, revenues, adj. EBITDA, Gross Merchandise Value (GMV) as well as the respective growth rates are impacted by the Argentine, Lebanese and/or Turkish operations qualifying as hyperinflationary economies according to IAS 29.
RC = Reported Currency / CC = Constant Currency
Source: Bloomberg, National Institute of Statistics and Censuses of the Argentine Republic (INDEC)
Note: Americas Gross Merchandise Value (GMV), segment revenues, adj. EBITDA, as well as the respective growth rates are impacted by the Argentine operations qualifying as hyperinflationary economy according to IAS 29. In Q4 2022 GMV and Segment Revenue have been retrospectively adjusted with a total impact of -€134.1m and -€34.8m, respectively.
Director IR [email protected]
Laura Hecker Senior Manager IR [email protected]
Loredana Strîmbei Specialist IR [email protected]
T: +49 (0)30 54 4459 105 Oranienburger Straße 70, 10117 Berlin, Germany
ir.deliveryhero.com
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