Delivery Hero achieves adjusted EBITDA breakeven for May, June

Delivery Hero, the company behind food delivery major Foodpanda, posted around US$2.1 billion in revenue for the second quarter of 2022, a 38% jump compared to the same period last year. At the same time, its gross merchandise value (GMV) also increased 18% to US$9.9 billion.

In May and June this year, the firm hit adjusted EBITDA breakeven for its platform business, which includes Foodpanda’s operations in Asia. It exceeded previous forecasts that projected the business to break even in the second half of the year.

Photo credit: Foodpanda

In a statement, Delivery Hero said that it achieved the milestone due to rationalization in marketing and incentive spending. The company also highlighted its logistics service, its implementation of service fees in some markets, and the penetration of its adtech products as contributors to this growth.

The Germany-based firm expects its platform business to break even again in adjusted EBITDA during Q3 this year, and it looks to generate between US$40 million and US$120 million in adjusted EBITDA in Q4 2022.

Meanwhile, Delivery Hero’s total segment EBITDA was still in the red last quarter, with a margin of around -1.4% compared to GMV.

Niklas Östberg, the company’s CEO, said that he wants to focus on growing the firm’s platform business and quick commerce as well as on accelerating profitability by the end of this year. “I am delighted to see that we have exceeded our H1 2022 targets on both of these fronts, giving us strong momentum as we move into the second half of the year,” he said in a statement.

See also: The key players in Southeast Asia’s quick commerce space

With this, Delivery Hero slightly lowered its target GMV for the financial year 2022 from US$43 million to US$41 million. It also aims to raise its EBITDA margin for the period in the range of -0.9% to -1% compared to GMV, a lower projection from the -1% to -1.2% forecast that the company revealed earlier this year.