Talabat ($TALABAT ) held its first conference call on the results for the fourth quarter and full year 2024 after the IPO. In case some have not noticed: Delivery Hero has floated shares in Talabat. Talabat, like Delivery Hero, is a food delivery service in the Middle East. Here is a summary of the first conference:
CEO Tomaso Rodriguez first gave an overview of the company and its key strengths. Talabat is the leading online marketplace for food ordering, delivery, grocery and retail in the MENA region. The company operates in eight Gulf Cooperation Council (GCC) countries as well as Egypt, Jordan and Iraq. Key strengths include a large and fast-growing addressable market, a leading market position in each market, a powerful network and a fully multi-vertical ecosystem.
In 2024, GMV grew by around 23% and reached USD 7.4 billion. Revenue increased by 32% year-on-year to USD 3 billion. Adjusted EBITDA improved by 1.4 percentage points year-on-year and reached 6.7% of GMV, representing 55% year-on-year growth and almost USD 500 million. Net profit increased by 64% year-on-year and reached almost USD 350 million, representing a margin increase of 1.2 percentage points and 4.7% of GMV. Based on the strong fourth quarter results, the company intends to increase the dividend payment to increase the dividend payment to 110 million US dollarssubject to the approval of the Board of Directors and shareholders.
The company's long-term strategy focuses on three main pillars: Deepening and increasing penetration of business segments, loyalty through ecosystem products and deepening relationships with partners and vendors. Key updates include the complete overhaul of the Talabat app, with a focus on personalization to improve customer engagement and conversion.
Looking at the full year compared to the guidance given during the IPO, Talabat exceeded or met all metrics. For 2025, the company reiterated its guidance for GMV growth of 17% to 18%, revenue growth of 18% to 20% and an adjusted EBITDA margin of 6.5% to 7%.
The following topics were discussed in the subsequent Q&A session:
Personalization: Personalization of the app interface should offer merchants better opportunities and allow them to display more relevant advertising targeted to users who are interested in it. This could lead to higher advertising revenue as retailers' advertising spend becomes more effective.
Talabat Pro: Expanding TPRO's value proposition to reach more customers, including those with medium or low order frequency. New use cases such as discounts on food and retail should increase customer loyalty.
InstaShop: The transaction with InstaShop is progressing well and is expected to close shortly.
First quarter of 2025: The first quarter of 2025 is developing in line with the strategy and business plan.
Market shares: Talabat is several times larger than the nearest competitor in all markets.
Delivery fees: Delivery fees are stable at around 9.4% of GMV. There is no pressure on delivery fees.
Seasonality: Ramadan, summer and the fourth quarter have a seasonal impact on the business. Ramadan usually leads to a drop in order volume in the first week, followed by a gradual increase towards the end of the month.
Food and retail: The share of food and retail in GMV is growing rapidly. The online share of the total food market is expected to increase significantly.
In summary, Talabat is a leading company with strong growth, a clear strategy and a solid financial base. The investments in customer satisfaction and the development of new business areas make me very confident about Talabat's future.
I hope this summary has helped you.
Stay tuned!
