Delivery Hero cuts full-year outlook on currency headwinds

Delivery Hero lowered its full-year adjusted earnings and free cash flow forecasts, citing currency headwinds.

The German online food delivery company now expects adjusted EBITDA between 900 million (US$1.04 billion) and 940 million euros (US$1.09 billion), down from its previous range of 975 million (US$1.1 billion) to 1 billion euros (US$1.16 billion).

It also cut its free cash flow forecast by about 40% to more than 120 million euros (US$139.65 million).

Delivery Hero said it expects gross merchandise value (GMV) to grow at the upper end of its 8% to 10% annual target.

🔗 Source: Reuters

🧠 Food for thought

1️⃣ Global food delivery platforms face structural currency volatility challenges

Delivery Hero’s guidance cut illustrates a fundamental challenge for multi-market operators: currency exposure becomes a major earnings risk as geographic footprints expand.

The company operates in over 70 countries across Asia, Europe, Africa, and Latin America, making it particularly vulnerable to foreign exchange fluctuations1 2.

This FX sensitivity forced the company to lower its EBITDA forecast by roughly 7% and slash free cash flow guidance by 40%, despite maintaining GMV growth expectations at the upper end of its 8-10% range1.

The impact demonstrates how currency volatility can quickly erode the financial benefits of geographic diversification in the delivery sector.

For global food delivery platforms, this creates a persistent challenge where operational success in local markets can be overshadowed by macro-economic currency movements beyond their control.

2️⃣ Competitive pressures can override favorable market dynamics in key regions

Delivery Hero’s Asian market struggle stands out against strong regional growth trends, suggesting execution or competitive challenges rather than market weakness.

The company’s Asian GMV declined from 6.1 billion to 5.4 billion euros in the first quarter, missing analyst expectations1.

Yet Southeast Asia’s food delivery market grew 13% year-over-year to reach $19.3 billion in 2024, with Vietnam and Indonesia leading growth at 26% and 18% respectively3.