In most sectors, companies lament the impact of rising interest rates. The higher cost of capital sends their wheels spinning. Not so in European food delivery, where operators have paused value-incinerating land-grabs and are starting to gain traction.
For the first time, all three of the European delivery companies are expected to report positive adjusted ebitda in 2023. This metric strips out the impact of share-based compensation, which can be considerable, but it provides a useful indication of how the underlying business is performing.
The UK’s Deliveroo reckons it will do slightly better than its guidance of £60-80mn adjusted ebitda. Earlier in the week, Just Eat pointed to above-guidance adjusted ebitda of some €320mn. Germany’s Delivery Hero, which operates brands such as Glovo, Foodora and Foodpanda, expects adjusted ebitda margins of over 0.5 per cent.
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