Delivery Hero, the German parent company of food delivery service Talabat, is considering ratcheting up its investments as it seeks to ride first-half momentum to win more market share, its finance chief said.
The Berlin-based group raised its 2021 revenue and gross merchandise volume outlook, but tweaked its forecast for adjusted core operating margin to minus 2 per cent, at the lower end of its previous forecast.
“The small implied downgrade to consensus Ebitda [earnings before interest, tax, depreciation and amortisation] today comes at a difficult time,” Jefferies said after the earnings report.
The group returned to its home market Germany earlier this year amid a furious boom in rapid delivery there, pitting it against start-ups like Gorillas that are attracting lavish backing from venture capital investors.
With demand for at-home deliveries surging during the pandemic, Delivery Hero has invested extensively both in food delivery and in so-called quick commerce, which aims to deliver goods in as little as 10 to 15 minutes.
“We are considering investing a little bit more,” said chief financial officer Emmanuel Thomassin. He said the additional investments would be in core operations, while the €550 million ($645.77m) full-year investment goal for new markets remained unchanged.
The company, which operates in about 50 countries across Europe, Latin America, Asia, the Middle East and North Africa, now sees revenue in a range from €6.4bn to €6.7bn for the year, compared with earlier expectations of €6.1bn to €6.6bn.
It more than doubled quarterly revenue to €1.55bn, on continued strong demand for its food and rapid delivery services, even as pandemic-related restrictions were eased across its markets.
Chief executive Niklas Oestberg said, however, it would take time before investments in quick delivery began paying off.
“Quick delivery will be a huge part of Delivery Hero. But the margins in groceries are incredibly low,” Mr Oestberg said. “In order to make it economical we need to innovate and improve. It is still a long way to go.”
When asked earlier about the 5.09 per cent stake in Deliveroo it took earlier this month, Mr Oestberg said it made financial and strategic sense, without elaborating.
The specs
Engine: 2.0-litre 4-cylinder turbo
Power: 240hp at 5,500rpm
Torque: 390Nm at 3,000rpm
Transmission: eight-speed auto
Price: from Dh122,745
On sale: now
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UAE currency: the story behind the money in your pockets
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Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
The specs
- Engine: 3.9-litre twin-turbo V8
- Power: 640hp
- Torque: 760nm
- On sale: 2026
- Price: Not announced yet
UAE currency: the story behind the money in your pockets
If you go
The flights
There are various ways of getting to the southern Serengeti in Tanzania from the UAE. The exact route and airstrip depends on your overall trip itinerary and which camp you’re staying at.
Flydubai flies direct from Dubai to Kilimanjaro International Airport from Dh1,350 return, including taxes; this can be followed by a short flight from Kilimanjaro to the Serengeti with Coastal Aviation from about US$700 (Dh2,500) return, including taxes. Kenya Airways, Emirates and Etihad offer flights via Nairobi or Dar es Salaam.
How Islam's view of posthumous transplant surgery changed
Transplants from the deceased have been carried out in hospitals across the globe for decades, but in some countries in the Middle East, including the UAE, the practise was banned until relatively recently.
Opinion has been divided as to whether organ donations from a deceased person is permissible in Islam.
The body is viewed as sacred, during and after death, thus prohibiting cremation and tattoos.
One school of thought viewed the removal of organs after death as equally impermissible.
That view has largely changed, and among scholars and indeed many in society, to be seen as permissible to save another life.
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