# Delivery Hero sees higher gross merchandise value in third quarter
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-08-16
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: Delivery Hero expects 7% Q3 GMV jump to €10.6 billion
Meta Description: Analysts optimistic about strong Q3 outlook, profitability, and upgrades for Delivery Hero, as it forges ahead in the competitive food delivery sector.
URL: https://financedigest.com/delivery-hero-sees-higher-gross-merchandise-value-in-third-quarterhtml

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(Reuters) -German online takeaway food company Delivery Hero on Tuesday forecast a 7% jump in its third-quarter gross merchandise value (GMV) to 10.6 billion euros ($10.8 billion), compared with the April to June period.

Including Barcelona-headquartered food delivery firm Glovo, in which Delivery Hero owns a majority stake, the group expects its GMV to reach 11.5 billion euros in the three months to Sept. 30.

“Slowdown… what Slowdown? A strong Q3 [outlook and positive comments on profitability](https://www.financedigest.com/ford-posts-lower-profit-issues-downbeat-outlook-shares-drop.html "Ford posts lower profit, issues downbeat outlook; shares drop") – upgrades are coming through,” analysts at J.P. Morgan commented the trading update in a note to clients.

The company [expects the Asia segment for its platform business](https://www.financedigest.com/german-businesses-expect-only-mild-recession-as-disruptions-ease.html "German businesses expect only mild recession as disruptions ease"), which accounts for nearly three quarters of the group’s GMV, to generate 7 billion euros in the current three-month period, an 8% increase on the quarter. The segment had also generated positive core earnings in the [second quarter](https://www.financedigest.com/workday-announces-fiscal-2018-second-quarter-financial-results.html "Workday Announces Fiscal 2018 Second Quarter Financial Results").

Delivery Hero also reiterated its [target to reach profitability](https://www.financedigest.com/julius-baer-2022-profits-fall-as-it-hits-business-cycle-targets.html "Julius Baer 2022 profits fall as it hits business cycle targets") for the entire group in 2023.

The widely loss-making [food delivery](https://www.financedigest.com/european-food-delivery-shapes-up-with-getirs-gorillas-buy.html "European food delivery shapes up with Getir’s Gorillas buy") sector was one of the big beneficiaries of the COVID-19 pandemic, but that effect has waned as consumers, faced with soaring inflation, have started to cut back.

In the third quarter of 2021, [Delivery Hero had posted a GMV of 9.6 billion euros](https://www.financedigest.com/delivery-hero-ramps-up-interest-payments-to-raise-1-billion-euro-convertible-bond.html "Delivery Hero ramps up interest payments to raise 1 billion euro convertible bond"), a 65% increase year-on-year, boosted by higher demand for food delivery amid coronavirus restrictions.

The Berlin-based firm confirmed its preliminary figures for the second quarter, including an 18% GMV growth and a 38% [rise in revenues](https://www.financedigest.com/soccer-european-revenues-rise-10-in-2020-21-despite-covid.html "Soccer-European revenues rise 10% in 2020-21 despite COVID") on the year, and the updated full-year guidance it issued in July.

($1 = 0.9845 euros)

(Reporting by Tristan Chabba and Elena Vardon in Gdansk, editing by Milla Nissi)


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