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Delivery Hero disappoints the market with lack of GMV prospects

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Edited by Linda Pasquini

(RockedBuzz via Reuters) – German online takeaway food company Delivery Hero on Thursday reported a slightly lower-than-expected gross merchandise value (GMV) in 2022 and refrained from providing guidance on GMV for the current year, causing a its shares drop up to 11%.

Chief Financial Officer Emmanuel Thomassin told RockedBuzz via Reuters it was too early to provide an outlook on GMV for the year given the current volatile environment.

“GMV guidance (for 2023) has not yet been provided, which the market was expecting,” RBC analysts said in a statement.

After a boost to growth during the COVID-19 pandemic, Delivery Hero has focused on achieving long-awaited profitability as investor confidence in the rapidly expanding but mostly unprofitable sector has begun to wane.

The group confirmed that it still expects a positive margin on adjusted core earnings (EBITDA) at GMV of more than 0.5% in 2023.

Delivery Hero reported a GMV of 44.6 billion euros ($47.90 billion) for 2022, lower than the 44.87 billion euros estimated by analysts in a survey provided by the firm, citing currency effects and its greater attention to profitability.

Shares fell 4.4% to €51 by 10:30 GMT, narrowing earlier losses.

When asked about potential cost cuts on the way to profits, Thomassin said the company’s priority was revenue optimization, adding he hadn’t seen Delivery Hero make “massive” reductions like other colleagues.

Rival Just Eat Takeaway NV said in November that a retooling of its customer service operations could lead to the loss of 170 jobs globally.

Spain’s Glovo, part of Delivery Hero, said in late January it would lay off 250 workers, or 6.5% of its global workforce, citing a decline in orders and inefficiencies after its rapid growth during the coronavirus pandemic. COVID-19.

($1 = 0.9310 euros)

(Reporting by Linda Pasquini in Gdansk; Editing by Milla Nissi and Kylie MacLellan)