Delivery Hero Faces Legal Setback, Adjusts EBITDA Forecast

Delivery Hero SE reports a 57M euro reduction in its 2024 EBITDA forecast due to legal risks associated with its Italian operations. The increased provisions of 183M euros could pressure investor sentiment in the near term as uncertainties loom.

Date: 11-04-2025

AI Rating: 5

Delivery Hero SE's recent announcement of increased provisions for legal risks directly impacts its financial outlook for 2024. The company has raised provisions by 183 million euros to address potential liabilities stemming from a court decision regarding delivery riders in Italy. This adjustment reflects the challenges the company faces in compliance and regulatory aspects, particularly in its Italian subsidiary, Glovo.

The impact on the company’s adjusted EBITDA is notably significant, with revised expectations dropping from approximately 750 million euros to 693 million euros for fiscal year 2024. This decrease of 57 million euros significantly alters the financial narrative surrounding Delivery Hero, showcasing a decline in expected operational performance.

Additionally, the overall amount provisioned, reaching 253 million euros, may create concerns among investors regarding the management of operational risks and the potential for further legal challenges in other jurisdictions. While the company has confirmed unchanged guidance for fiscal year 2025, the immediate focus remains on how these legal issues will affect cash flows and profitability in the interim.

From an investment perspective, the implications of these legal adjustments could weigh on Delivery Hero's stock price, notably due to perceived risks surrounding management's ability to navigate regulatory environments effectively. Furthermore, until a final resolution is achieved, uncertainty could dampen investor confidence, likely leading to downward pressure on stock valuations.

Stocks: DHER.DE