© Reuters. FILE PHOTO: The Delivery Hero’s logo is pictured at its headquarters in Berlin, Germany, August 18, 2020. REUTERS/Fabrizio Bensch/File Photo
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.
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