Companies & Markets

Delivery Hero raises 2020 revenue guidance as quarterly sales double

Published Wed, Oct 28, 2020 · 07:14 AM

[BERLIN] German online takeaway food company Delivery Hero raised its guidance for 2020 sales for the second time this year on Wednesday as coronavirus lockdowns and investment in ultra-fast deliveries boosted quarterly figures.

The Berlin-based company, which operates in more than 600 cities, said it now expected 2020 revenues of 2.7 billion-2.8 billion euros (S$4.34 billion-S$4.50 billion), compared with 2.6 billion-2.8 billion euros previously.

The company stood by its guidance on a margin of an adjusted group earnings before interest, taxes, depreciation and amortisation (EBITDA) of minus 14-18 per cent.

Strict social distancing rules and work-from-home trends to curb the spread of the coronavirus have increased demand for home deliveries of food and other basic items, making Delivery Hero one of the winners of the pandemic.

Third-quarter revenue nearly doubled year-on-year at 776.4 million euros compared to 390.6 million euros in the same period a year earlier, boosted by a strong performance in Asia.

The company still expects South Korea's competition authorities to approve its takeover of the country's top food delivery app owner Woowa Brothers by the end of the year, it said in a statement.