Delivery Hero CEO Happy to Keep Foodpanda Brand as Talks of Sale Collapse

Delivery Hero Shares Surge as Talks Collapse

Delivery Hero shares experienced a huge surge after talks of potentially selling its Southeast Asian unit Foodpanda collapsed. Investors panicked at the thought of the company not being able to cash out and fled the shares causing a sharp plunge in the stock. However Delivery Hero shares rebounded with a surge of 11%.

Delivery Hero Reports Positive Segment Revenues

Delivery Hero reported a 9% increase in total segment revenues amounting to 10.5 billion euros in 2023. The company also restated its guidance for 2024 adjusted EBITDA which is projected to triple from 2023.

CEO's Confidence in Retaining Foodpanda

Delivery Hero CEO Niklas Ostberg expressed his happiness in holding onto the Foodpanda brand. He confirmed that Foodpanda has turned breakeven no longer burdening the company's profitability. Ostberg sees Southeast Asia as one of their faster growing regions with great growth potential.

Acting Rational Towards Investors

Ostberg emphasized that Delivery Hero is not forced to sell Foodpanda and that they are a business driven by the love of a good service. While a potential sale is still under consideration Ostberg believes that they can generate good returns for shareholders and will only consider a price that offers good value.

Delivery Hero's Recovery Efforts

Delivery Hero has been under pressure to make solid returns on its acquired businesses. The company recently faced a brutal share price plunge with stock reaching its lowest level since 2022. However Delivery Hero is now attempting to recover by focusing on its remaining assets.

Stock Yet to Fully Recover

Despite positive reactions from shareholders after divesting its stake in Deliveroo Delivery Hero's stock has yet to fully recover from the recent losses.