Delivery Hero has skyrocketed its losses after integrating the Glovo business, a Barcelona platform that it acquired last year. According to the results published this morning regarding 2022, the German home delivery giant more than doubled its annual net losses, going from 1,120.7 million lost in 2021 to 2,975.1 million in 2022.
The company explains that the negative result is due to the integration of Glovo, for which it paid 564 million euros to acquire 50% of its capital (before, the German firm already controlled 44%). The increase in losses is also explained by the growth in operating costs, by investment in growth and RD and the unfavorable economic context, marked by inflation, the slowdown in consumption and the rise in interest rates. In addition, the company has integrated the South Korean platform Woowa.
In this financial year, Delivery Hero has continued to expand its business by 46%, since revenues have grown by 8,577.3 to millions of euros. The company highlights that it has achieved this despite the unfavorable economic context. And in fact, it stands out that the Ebitda (gross profit) has been positive of 2,231 million euros, 77% more than the previous year.
In Barcelona, the company applied a Glovo workforce cut that affected 250 people with the aim of cutting costs and gaining efficiency. Today's share price has remained stable at 32 euros but compared to the beginning of 2022, it has fallen by around 65%.
