Talabat over-delivers on guidance as net income grows 64% to $346mn
Delivery platform Talabat Holding, announced its first set of unaudited preliminary pro forma financial results for the full year 2024 following the initial public offering in December last year, beating guidance on some of the key numbers and delivering a record Gross Merchandise Value (GMV) of $7.4 billion.
For FY 2024, management revenue (without deducting vouchers and discounts issued to customers and reconciliation effects) grew 32 per cent, exceeding the top end of guidance, to reach $3 billion for the year. Adjusted EBITDA also beat the guidance, as it grew 55 per cent to $497 million, or 6.7 per cent of GMV (the total value of goods sold through the platform).
Talabat GMV hits record
GMV grew 23 per cent for the year compared to 2023, in line with guidance, and reached a record $7.4 billion. The growth was driven by stronger consumer demand through new customer acquisition and increased order frequency. Monthly active customers served increased 25 per cent over the previous year, while the average order frequency of active customers increased 8 per cent.
Net income jumped 64 per cent to $346 million or 4.7 per cent of GMV, which was in line with expectations. On a normalised basis, adjusting for material non-recurring items to allow for a like-for-like comparison, net income grew 53 per cent to $393 million or 5.3 per cent of GMV.
GMV growth and margin expansion were across both geographical segments – GCC (comprising operations in the UAE, Kuwait, Qatar, Bahrain and Oman) and non-GCC (operations in Egypt, Jordan and Iraq).
GCC GMV grew to $6.3 billion, up 20 per cent and representing 85 per cent of total GMV. Non-GCC GMV grew at a faster rate of 42 per cent to $1.1 billion, making up for the remaining 15 per cent of total GMV. Food GMV grew 16 per cent to $5.5 billion, but the pace was outstripped by G&R (grocery and retail) GMV, which was up 47 per cent to $1.9 billion.
Tomaso Rodriguez, Chief Executive Officer of Talabat, commented: '2024 was a truly landmark year for Talabat. We delivered exceptional financial results, achieving a record $7.4 billion in GMV and exceeding both our revenue and Adjusted EBITDA guidance.
'Our strong performance in the last quarter of the year supports an increase in the upcoming dividend payment amount to $110 million. These achievements underscore the strength of our growth strategy and the dedication of our teams across all eight countries in which we operate.
'Looking ahead to 2025, we are confident in our reiterated guidance and our ability to continue driving sustainable growth and profitability. We remain focused on expanding our market leadership, enhancing our technology platform, and strengthening our partnerships across the ecosystem.'
Talabat reiterated its guidance for the full year 2025. GMV is projected to grow 17-18 per cent year-on-year, and revenue is expected to grow 18-20 per cent. The company expects adjusted EBITDA margin to remain in the 6.5-7.0 per cent and net income margin to expand into the 5-5.5 per cent range.
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