The accounts have not yet surfaced, but the company believes a weather shift is near. The German group behind Glovo posted a 620 million euro loss in 2022, with no current path to profitability in sight. Still, management signaled that red numbers should not derail expectations for the upcoming fourth quarter, which remains a realistic target for the year ahead.
According to the accounts, the firm, with well over a decade in operation, expects a turn to profitability in the second half of the year. The trend in revenue supports that view: if delivery volumes brought in 2.2 billion euros in the first quarter, revenue rose to about 2.5 billion in the final quarter. Annual turnover climbed from 7.2 billion euros to 9.5 billion, marking a 32 percent increase.
The breakdown points to the Asia-Pacific region contributing the most, with around 3.8 billion euros, followed by the Middle East and North Africa at 2.2 billion euros, and Europe at 1.3 billion euros. The Delivery Hero group now owns 13 food delivery and home shopping entities operating across its network.
“Another quarter has been closed successfully,” the company stated. CEO and Co-Founder Niklas Ostberg noted that market positions improved across key countries while profitability also advanced significantly. Costs were brought under better control, efficiency rose, and the company broadened its advertising services by offering clients new options to promote their food offerings.
crafting adjustments
The executive summary highlights that the industry faced multiple headwinds last year and the company is focused on emerging stronger. The CFO emphasized the path forward and projected adjusted EBITDA, which stands for earnings before interest, taxes, depreciation and amortization, in positive territory for the full year 2023 and an improved result for the second half of the year in particular.
In this context, both the Catalan unit and the parent company have accelerated cost reductions. Glovo has announced a reduction of about 250 jobs in its offices in the coming months, representing roughly 6.5 percent of the workforce, while Delivery Hero plans about 150 more layoffs in its Berlin operation, equating to roughly 4 percent of the total staff. The aim is to reassure investors with a clear path to the green numbers promised for the year.