By Mauro Orru

 

Shares in Delivery Hero SE kept falling Friday, extending their losses a day after the German food-delivery company posted fourth-quarter figures and annual targets below market expectations.

At 1120 GMT, Delivery Hero shares traded 10% lower at EUR41.84. Shares had dropped more than 25% Thursday.

Delivery Hero said the number of orders for the fourth quarter rose 27% to 775.5 million, while its gross merchandise value--a key indicator of sales growth--increased to 9.64 billion euros ($11.02 billion) from EUR6.95 billion. Revenue climbed to EUR1.92 billion from EUR1.15 billion.

However, all key metrics came in below forecasts. UBS analysts had expected 807 million orders, with consensus forecasting 850 million. UBS analysts expected a GMV of EUR9.68 billion, with consensus even higher at EUR9.96 billion. Revenue also came below consensus forecasts of EUR1.98 billion.

While the fourth-quarter update was disappointing, the biggest letdown came from company guidance for 2022, Bryan Garnier analysts said.

Delivery Hero is targeting a GMV between EUR44 billion and EUR45 billion, revenue between EUR9.5 billion and EUR10.5 billion, and an adjusted earnings before interest, taxes, depreciation, and amortization to GMV margin coming in at about minus 1% and minus 1.2%. It also expects positive adjusted Ebitda for its platform business.

"Following the very disappointing guidance provided by Delivery Hero, we understand that Ebitda will remain deeply negative in 2022 in the range of EUR775 million-EUR865 million," Bryan Garnier analysts said.

Delivery Hero shares are down nearly 60% since the start of the year.

 

Write to Mauro Orru at mauro.orru@wsj.com; @MauroOrru94

 

(END) Dow Jones Newswires

February 11, 2022 06:37 ET (11:37 GMT)

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