Mitigate losses by 24%, unit shipments break even ahead of target

Singapore carpooling and food delivery service company Grab logo seen displayed on a smartphone screen.

Budrul Chukrut | Sopa Pictures | Light flare | Getty Images

Singapore-based carpooling and food delivery giant To input reduced losses and broke even in its deliveries segment for the first time since 2012, during the third quarter.

The company posted adjusted earnings before interest, tax, depreciation and amortization of $161 million, a 24% improvement from the adjusted EBITDA loss of $212 million in the same period a year ago. EBITDA is a measure of profitability that shows earnings before interest, taxes, depreciation and amortization.

Grab offers a range of services including ride sharing, food delivery, package delivery, grocery delivery and mobile payments through GrabPay.

The company said its delivery business broke even three-quarters ahead of expectations, “primarily due to the optimization of our incentive spend and contributions from Jaya Grocer.” In January, Grab has acquired a majority stake in Malaysian high-end supermarket chain Jaya Grocer to accelerate its expansion into grocery delivery.

Food shipments also posted positive adjusted EBITDA in the third quarter, two quarters ahead of its previous guidance.

“We broke even in Core Food Deliveries and Global Deliveries Segment Adjusted EBITDA ahead of expectations while significantly reducing our overall loss for the period. We did this by remaining focused on our structure. costs and our incentives,” Anthony Tan, co-founder of Grab and group CEO, said in a statement.

U.S.-listed shares of Grab rose 0.64% to close at $3.15 apiece on Wednesday, outperforming the S&P 500 and Nasdaq Composite which fell 0.83% and 1.54%, respectively.

Grab went public in December 2021 after its SPAC merger closed. The stock has fallen 56% since the start of the year.

Towards profitability

Grab’s monthly average of active driver-partners during the quarter reached 80% of pre-Covid levels. The company also said incentives fell to 9.4% of GMV from 11.4% for the same period last year and 10.4% for the prior quarter.

“This demonstrates our commitment to growing profitably and sustainably,” Tan said.

Grab raised its full-year guidance and now expects revenue to be between $1.32 billion and $1.35 billion, up from $1.25 billion to $1.30 billion previously. It also revised its adjusted EBITDA outlook for the second half of the year and now expects a loss of $315 million, better than the $380 million it previously forecast.

“We will aim to better optimize our cost structure by limiting discretionary spending,” Grab Chief Financial Officer Peter Oey said at the press conference.

“We have begun to suspend or slow down hiring in various departments across the business. We have also been disciplined to optimize non-staff overhead costs,” he added.

Grab Reports First Quarter Results;  net loss narrows

By Admin

Leave a Reply

Your email address will not be published. Required fields are marked *