Stock Market Insights: Midday Update
Delivery Hero encounters a course setback.
In the relaxed trading atmosphere of the last day before Christmas, the German stock market maintained its stance. By midday on Friday, the Dax had inched up by 0.2% to 19,888 points, while the MDax slumped by 0.1% to 25,688 points. The Euro Stoxx 50 saw a growth of about 0.4%.
However, following a record high of over 20,500 points in mid-December, the Dax has entered a corrective phase, with profit-taking being prevalent towards the end of a prosperous year. The uncertainty surrounds the interest rate policy of the US Federal Reserve, economic policies under the incoming US President Donald Trump, and the anticipated economic recovery in China. Despite this, the German benchmark index's annual performance, amounting to a nearly 19% growth, is impressive.
Taking the spotlight among companies, Delivery Hero experienced a dip, after Taiwan's Fair Trade Commission obstructed the sale of the Foodpanda business in Taiwan. The shares dropped to their lowest since late August and were last down 5%. US ride-hailing and delivery service Uber had intended to acquire the unit for around $1 billion. J.P. Morgan analyst Marcus Diebel described the announcement as a significant negative for the food delivery company.
The news that HelloFresh intends to buy back an additional €75 million of its own shares buoyed the meal kit provider's shares, which peaked at a 1.6% increase. The buyback aims to counteract the dilution that will result from the regular allocations under the company's employee participation programs scheduled for 2025.
Hornbach Holding is in search of a new CFO, as Karin Dohm is scheduled to leave the company by March 31, 2022, at her own request. CEO Albrecht Hornbach will take on the role temporarily, in addition to his current duties, if a smooth transition cannot be ensured. Hornbach shares experienced a 2.5% rise.
Covestro had to vacate the Dax today as its free float fell below 10%. In the MDax, dialysis specialist FMC moved up to the Dax, while real estate company Deutsche Wohnen, belonging to Vonovia, ascended from the SDax. Laser specialist LPKF was subsequently admitted to the SDax.
Based on available information, here's an overview of current market trends for the listed companies, with detailed trends provided for Delivery Hero:
Delivery Hero:
- Growth Acceleration: Q1 2025 GMV rose 9% YoY to €12.4B, with revenue up 22% YoY to €3.5B. Excluding South Korea (impacted by political turbulence), GMV grew 22%.
- Profitability Focus: In FY2024, net losses reduced by 61.6% (€882.4M vs. €2.3B in 2023), driven by cost-cutting and operational discipline.
- 2025 Targets: GMV growth guidance of 8–10%, revenue growth of 17–19%, and Adjusted EBITDA of €975M–€1.025B.
- Strategic Shifts: Expanding AdTech (targeting >€1.5B revenue in 2025) and quick-commerce subscriptions.
- Despite a dip following the obstructed sale of the Foodpanda business in Taiwan, Delivery Hero aims to boost its performance with growth acceleration, profitability focus, strategic shifts, and targets set for 2025.
- In the finance world, investing in the stock-market giants like the German benchmark index, such as the Dax, can prove to be a lucrative business opportunity, given their impressive annual performance, like the nearly 19% growth experienced in 2021.
- The stock-market landscape is constantly shifting, as demonstrated by Covestro's departure from the Dax due to a fall in free float below 10%, and the entry of FMC into the Dax as a dialysis specialist, creating opportunities for shrewd investors.
- Companies like HelloFresh are taking steps to maintain their growth trajectory by implementing strategies like share buybacks, such as the €75 million additional share buyback announced in 2022, to offset dilution from employee participation programs scheduled for 2025.
- In the thriving world of business, enterprises like Hornbach Holding are always on the lookout for capable executives, as evidenced by their search for a new CFO, with CEO Albrecht Hornbach set to take on the role temporarily if a smooth transition cannot be ensured.
