Delivery Hero sees higher gross merchandise value in third quarter

(Reuters) -German on-line takeaway meals firm Supply Hero on Tuesday forecast a 7% bounce in its third-quarter gross merchandise worth (GMV) to 10.6 billion euros ($10.8 billion), in contrast with the April to June interval.

Together with Barcelona-headquartered meals supply agency Glovo, through which Supply Hero owns a majority stake, the group expects its GMV to achieve 11.5 billion euros within the three months to Sept. 30.

“Slowdown… what Slowdown? A powerful Q3 outlook and optimistic feedback on profitability – upgrades are coming by way of,” analysts at J.P. Morgan commented the buying and selling replace in a be aware to shoppers.

The corporate expects the Asia section for its platform enterprise, which accounts for almost three quarters of the group’s GMV, to generate 7 billion euros within the present three-month interval, an 8% enhance on the quarter. The section had additionally generated optimistic core earnings within the second quarter.

Supply Hero additionally reiterated its goal to achieve profitability for the whole group in 2023.

The extensively loss-making meals supply sector was one of many large beneficiaries of the COVID-19 pandemic, however that impact has waned as customers, confronted with hovering inflation, have began to chop again.

Within the third quarter of 2021, Supply Hero had posted a GMV of 9.6 billion euros, a 65% enhance year-on-year, boosted by larger demand for meals supply amid coronavirus restrictions.

The Berlin-based agency confirmed its preliminary figures for the second quarter, together with an 18% GMV progress and a 38% rise in revenues on the yr, and the up to date full-year steering it issued in July.

($1 = 0.9845 euros)

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