Delivery Hero says cash flow generation enough to settle debt maturities
Reuters
Published Feb 14, 2024 07:04
Updated Feb 14, 2024 10:46
By Linda Pasquini
(Reuters) -Germany's Delivery Hero expects its organic cash flow generation to be more than sufficient to settle convertible bond and debt maturities in the coming years, it said on Wednesday, sending its shares up more than 7%.
The group has been facing growing investor concerns about its ability to generate cash and repay outstanding debt organically while still delivering both profitability and growth.
Its shares fell sharply earlier this month after a media report that talks over the sale of part of its foodpanda business in Southeast Asia had collapsed, which Delivery Hero denied.
In an earnings presentation, the company said it is not dependent on external refinancing or on proceeds from minority stake monetisation or disposals, as it also confirmed the preliminary annual core profit figure published last week.
Delivery Hero's debt includes 4.4 billion euros in outstanding convertible bonds and $825 million and 300 million euros term loans, it said.
The company will generate enough cash flow in 2024 and 2025 to settle the next convertible bond maturity in the summer of 2025, Chief Financial Officer Emmanuel Thomassin said in an interview.
Delivery Hero's shares were up 7.1% to 19.96 euros at 1040 GMT.
"We have ample access to capital if beneficial and when a compelling refinancing opportunity arises to further strengthen our long-term capital structure," the company said.
The company had 2.2 million euros in restricted cash at the end of 2023, it said, with cash located in hyperinflation countries corresponding to less than 3% of the total.
Unrestricted cash and cash equivalents stood at 1.7 billion euros.
The company confirmed its 2024 target for a positive free cash flow and adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) in a range of 725 million-775 million euros, compared to the 253.3 million euros it reported in 2023.
The forecast is in reported currency and includes hyperinflationary accounting.
Get The App
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.