Delivery Hero Reports Strong Q1 Growth Amid Debt Reduction

Delivery Hero's recent report indicates a solid Q1 with a 22% revenue growth, alongside profitability improvements. As the company exits Thailand operations, investors keenly watch its balanced growth and cash flow strategy.

Date: 24-04-2025

AI Rating: 7

Profitability and Growth Indicators
Delivery Hero's first-quarter Group Gross Merchandise Value (GMV) rose substantially, reflecting a solid increase of 9% year-over-year on a like-for-like basis. Notably, outside South Korea, GMV increased by 22%, highlighting the company's growth trajectory in key markets. This growth is further mirrored in their Total Segment Revenue, which also saw a 22% increase, reaching 3.5 billion euros. This performance is indicative of a robust demand for Delivery Hero’s services and an effective market strategy.

Financial Management
Marie-Anne Popp, CFO, stated that the company's focus on balancing growth with profitability and cash flow generation is yielding positive results. The improvement in the adjusted EBITDA margin points to better profitability management, which is a positive sign for potential investors. Additionally, the company’s proactive approach to reducing debt through the buyback of convertible bonds enhances its financial flexibility, providing a cushion for future investments or operations.

Outlook and Strategic Moves
Delivery Hero's audited fiscal 2024 financials, which reveal GMV growth of 8% and Total Segment Revenue growth of 22%, show a consistent growth pattern. However, the decision to cease operations in Thailand does raise questions regarding market strategy and resource allocation. The exit could lead to short-term disruptions but may free up resources for more profitable ventures. The company's commitment to achieving its guidance for 2025 suggests confidence in their operational strategy moving forward.

Stocks: DHERF DHER