(Reuters) -German online takeaway food company Delivery Hero slightly raised its full-year outlook on Tuesday after reporting a better-than-expected gross merchandise value (GMV) for the third quarter.
Its shares were up 4.9% in early Frankfurt trade.
The Berlin-based company now sees 2023 GMV growth at the upper end of its previous forecast range of 5-7% in constant currency terms.
The group generated a quarterly GMV, a common metric for delivery firms, of 11.69 billion euros ($12.50 billion), beating analysts’ estimate of 11.57 billion in a company-compiled consensus.
After the pandemic-driven boost to orders, Delivery Hero has focused on reaching long-awaited profitability amid sustained growth, as investor confidence in the rapidly expanding but mostly unprofitable sector started to wane.
“After another strong quarter we can confirm that we are on course to reach our full year EBITDA guidance, putting us in a strong position for our long term profitability goals,” Chief Financial Officer Emmanuel Thomassin said in a statement.
The company expects to improve its adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) by more than 850 million euros in 2023 from a loss of 467.2 million last year.
Delivery Hero, which reports earnings numbers only on a half-year and annual basis, said its key Asia-Pacific business reached a positive adjusted EBITDA before group costs in the month of October.
($1 = 0.9349 euros)
(Reporting by Ozan Ergenay and Michal Aleksandrowicz in Gdansk; Editing by Milla Nissi)
