Talabat Plans IPO on DFM in Q4-2024
Germany-based food delivery platform – Delivery Hero SE – which is listed on Frankfurt Stock Exchange and operates in the UAE and other countries in the Middle East and North Africa (MENA) region under the Talabat brand, said that it was preparing a listing of its Talabat business on the Dubai Financial Market (DFM) in Q4 of 2024.
A listing, following IPO boom in the UAE, may be pursued through a secondary sale of shares by Delivery Hero which would retain the majority interest in the local listing entity after an IPO, the company said while reporting strong Q2 and half yearly financial results on Thursday.
The execution of an IPO remains subject to market conditions, the approval of a securities prospectus by the UAE’s Securities and Commodities Authority (SCA) and further resolutions of the Management Board and Supervisory Board of Delivery Hero.
The Group’s platform business in the MENA region achieved outstanding Gross Merchandise Value (GMV) topline development of 28% year-on-year, fuelled by ongoing improvements to the ecosystem and customer experience.
Europe experienced double-digit order volume growth, leading to best-in-class GMV development of 19% y-o-y in Q2 of 2024 among European peers and in Asia, Delivery Hero reported revenue growth of 9% y-o-y, due to continued own delivery (OD) roll-out and a growing advertisement business.
Despite increased competition in South Korea, a number of initiatives during the second quarter has led to strong rebound in order volumes over the past few months. The platform business in the Americas achieved adj. EBITDA break-even in June.
Profitable Growth
Delivery Hero said that the results showed its drive for profitable growth across its global footprint continued to pay off. In the first six months and achieved adjusted EBITDA of $266.07 million, an uplift of $256.1 million from H1 of 2023, and reached Free Cash Flow (FCF) breakeven. It expects further FCF generation in H2 of 2024.
The Company reported positive GMV growth of 7% for the full quarter, driven mainly by a rise in order volume, with GMV growth outside of Asia reaching 23% y-o-y in Q2 of 2024.
Delivery Hero ended the quarter with a GMV increase of 10% y-o-y in June, with growth coming from almost all segments. The expansion of its AdTech business, Dmart business, service and subscription fees, as well as an ongoing increase in OD share, continued to drive double-digit growth in its Total Segment Revenue, rising by 20% y-o-y in the second quarter.
The Gross Profit margin of the Platform business remained firm at 7.6% in Q2 of 2024, with further margin expansion expected in H2 of 2024. The Integrated Verticals segment saw its Gross Profit margin nearly double quarter-on-quarter to 4%.
Niklas Ostberg, CEO and Co-Founder of Delivery Hero, said that the company delivered another strong quarter of growth and improved profitability which was a testament to their relentless focus on customer experience, operational efficiency, and category leadership.
Marie-Anne Popp, interim CFO of Delivery Hero, said that the company has met its goal to deliver strong financial results in line with our 2024 guidance.
“Our healthy topline growth continued into Q2 2024, and following an adj. EBITDA uplift, we achieved Free Cash Flow break-even in the first half of 2024. These numbers reflect the effectiveness of our business strategy to drive profitable growth, cash generation, and disciplined capital allocation,” Popp added.
