Shares in this article
indices in this article
BERLIN (dpa-AFX) – The food delivery service Delivery Hero continues its strong growth in the midst of the corona crisis. In June alone, the number of orders received by the candidate for promotion to the leading German index Dax (DAX 30) doubled. For the second quarter, there was an increase in orders of 94 percent compared to the same period last year, as the group announced on Thursday evening in Berlin. Driven by this data, the share could continue its latest record run on Friday, breaking the 100 euro mark for the first time.
Delivery Hero is one of the big beneficiaries of the corona pandemic. Since restaurants in many countries were sometimes closed for weeks and some people probably shied away from going to the supermarket because of the fear of possible infection, many people ordered their food and had it delivered. According to the latest information, the company initially plummeted in April, but thereafter order growth picked up significantly.
This development is also reflected in the share price. In the wake of the Corona crash crash, which initially came under pressure from February, it recovered quickly and rose to a record high. Since the March low of around EUR 50, the value of the paper has roughly doubled and the positive development should continue on Friday. On Thursday evening, the price on the Tradegate trading platform increased by almost five percent to EUR 102.80 compared to the end of Xetra.
This would allow the group to break the 20 billion euro mark at the end of the week. The rapid growth could deliver Delivery Hero a place in the leading German index Dax in September. Because then the payment processor Wirecard, which is stuck in a balance sheet scandal, must leave the first exchange league at the latest. In addition to Delivery Hero, the manufacturer of fragrances and flavors Symrise is a rising candidate, according to experts.
Before the possible DAX rise, Delivery Hero will present the complete figures for the most recent business development. The interim report for the second quarter is scheduled for July 28 and the detailed semi-annual report is scheduled for August 27. Then CEO Niklas stberg should also talk about the annual targets. Most recently, the target for annual sales in 2020 was between 2.4 billion and 2.6 billion euros, although the bottom line is that there should still be a loss.
Delivery Hero operates ordering platforms for food from local suppliers in more than 40 countries and employs over 25,000 people. However, the group had sold its German business with brands such as Foodora, Lieferheld or Pizza.de last year to its Dutch competitor Takeaway./mis/zb/stk