Middle East & North Africa continues to be the fastest growing region for Belin-headquartered international food and grocery delivery company Delivery Hero.
The German company announced its preliminary results for 2023 on Wednesday, saying that it grew its annual GMV (Gross Merchandise Volume) by 6.8 percent (year-over-year) to $51.08 billion (€47.6 billion) and revenue by 15.7 percent to $11.9 billion (€11.1 billion).
The adjusted EBITDA, which the company uses to measure profitability, was $271.5 million (€253 million), resulting in an EBITDA margin of 0.6 percent.
Delivery Hero’s stock has surged close to 30 percent in the last two days following the announcement of preliminary results. It is currently trading at €23.78, giving company a market cap of $7 billion (€6.5 billion).
Niklas Östberg, CEO and Co-Founder of Delivery Hero, commenting on the results, said, “2023 was a landmark year for Delivery Hero as we saw our commitment to a rational growth strategy pay off. We have proven that we can significantly improve profits and cash flows while building on our category leadership.”
In the Middle East & North Africa region (which includes Turkey), Delivery Hero experienced a 16.6 percent growth in Gross Merchandise Value (GMV), reaching $10.7 billion (€10 billion), and a 21.7 percent increase in revenue, totaling $2.9 billion (€2.7 billion).
The EBITDA for the company in the Middle East & North Africa was $326.9 million (€304.6 million).
The company operates four brands across, including Talabat, HungerStation, Yemeksepeti, and InstaShop, across entire GCC, Egypt, Iraq, and Turkey. Interestingly, all four brands came part of company’s portfolio after acquisitions.
In July last year, Delivery Hero acquired the 37 percent non-controlling interest in HungerStation from its founder Ebrahim Al-Jassim to secure 100 percent ownership of the company, for $297 million.
