Delivery Hero SE

XETRA:DHER

Earnings Call Transcript 2020-Q1

[Sigrid Dalberg-Krajewski]

Good morning, everyone, and welcome to Delivery Hero's Media Call for our Trading Update for the First Quarter of 2020. As Kay just mentioned, my name is Sigrid, I'm Director of Corporate Communications. And with me today, I have our CEO, Niklas Östberg; and our CFO, Emmanuel Thomassin. They will give you an overview of our latest financial results and answer any questions you might have in the following Q&A. Thanks for calling in, and if you need anything further after this call, please let me know.Now let me hand over to Niklas who will start the presentation.

[L. Niklas Östberg, Co]

Thank you, Sigrid, and good morning, everyone, and welcome to our media call for Q1. First of all, I hope you're well, safe and healthy in these times. So as you've seen, we had a great beginning of the year. The business continued its strong growth trajectory with orders growing by 92% year-on-year to 239 million orders in the first quarter, and this despite some implication from COVID-19 on our business in the first weeks. Gross merchandise value in Q1 was up 58% on a constant currency basis to EUR 2.4 billion. And revenue continued to grow rapidly with 92% for the first quarter on a constant currency basis to EUR 515 million.Strong growth is driven by improvements in our service offering in the first quarter 2020. Firstly, we've reached the widest and most diverse restaurant selection globally in -- or during the COVID-19. Our hybrid business model allows for the greatest restaurant quality and pricing, having the ability to add leading brands as well as local, independent restaurants make us a favorite with our customers. We hit the milestone of 500,000 contracted restaurants on the platform in January 2020. And that is the largest platform among the listed peers outside of China.The number of active restaurants on our platform grew in Q1 or, I should say, in the end of Q1 with 50,000 only in the last 3 weeks as COVID-19 emerged. There was also significant growth in the new sign-up and also a record on number of sign-ups seen. And this, of course, comes as the restaurant is seeking an online presence as food delivery is still allowed versus in dine-in restaurant often has not been the case. A portion of this growth is also driven from restaurant that joined our platform, but we hope that this will be an opportunity for them to see the long-term value of working with a delivery partner like ourselves, and the aim is to come out of the crisis even stronger from the trust that we've been building with these restaurant consumers.Then in Q1, we've also seen increased importance of our own-delivery capabilities. And in order to support the safety of the whole delivery ecosystem, which, of course, includes customers and rider, we also brought operational improvements and new contact delivery at the same time as we decreased also delivery time below 28 minutes. So a 20% improvement from last year. And all of this has been achieved through improved technology as well as general improvements in our service offering.And then another improvement is also the expansion into new verticals, and we'll talk more about that later. But we have seen a record demand of this segment over the last 2 months, in particular, and we currently operate in 30 markets and been expanding it and continue to expand it more or less in every market where we operate. The expected market opportunity for quick commerce, as it's called, I will speak more about later, but it's an opportunity of EUR 56 billion by 2030 only in delivery market and EUR 448 billion globally.So we're now moving on. As you are aware, we are the world's leading local delivery platform, and that's an -- important of our role to support communities, restaurants, delivery ecosystems, and this has been a particularly important year in the COVID-19 pandemic. We are, of course, monitoring the situation closely market by market to see where we can support the most, and we have been implementing a lot of initiatives, both globally and locally. And here you see on this slide some of those initiatives.In countries where governments have introduced widespread shutdowns, we are in active dialogue with the authorities and advocate for keeping restaurants open for online delivery. We are a critical part of the local ecosystem and are working closely with both the regulators and the government to support the delivery of food, groceries, pharmacy, supplies and so on. In many countries, delivery is quickly becoming the only option for restaurants to stay in business, and we have seen a large increase in the new restaurants joining our platforms, as mentioned before.We also see a record number of new customers joining our platform. Our advantage in these times are, of course, we can avoid crowded spaces like grocery stores and lets us, as a more professional service provider, doing the work for its customers. Some of the existing users might have slightly changed their ordering behavior, both in the positive and the negative. So some of the frequent users, of course, made some changes as we went into COVID-19, while we have seen a lot of new customer segments coming in to use our service. We also see a shift in customer groups where we see now an increase of -- in slightly all the demographics than what we had before as more people are trying out the service. We also see a strong shift towards the need of new verticals like groceries and have had exponential growth in this segment.We also, as mentioned, see a big group of the older population trying out our service, and here, we've also tried to do our best to help and support. One example of this is to let the older generation call in their orders. So this is targeting a customer above 65. And we tested this in Turkey recently and it has been very, very liked by this segment of customer groups. A small part of our business, but it means a lot to those people.The safety of the workers is, of course, extremely important. We have done a lot of education about safety measures. Our riders are equipped with sanitizers and masks where it is also culturally acceptable. They are also doing noncontact delivery with no-contact drop-offs and pickups to avoid any physical contact. They carry bags in specific ways, so that they don't touch the same places as customers. And we have done many of these safety measures to make sure that both the riders and consumers can order safely from us.In order to support our international community of riders throughout the COVID-19 crisis, we also set up a financial support program worth EUR 3 million to be made available for all subsidiaries. And this will cover if any rider is becoming sick or lose work because of illness from COVID-19.Restaurants. On the restaurant side, well, they need us more than ever. And the delivery ecosystem is dependent on restaurants to flourish. So we are doing our best to support them at best of our abilities. And we work tirelessly to keep delivery going in all our markets. And these are some of the measures we are taking on -- or some of the measures we are taking will be to focus marketing efforts to support local restaurants, so special campaigns to get them started. We have actually an onboarding process and temporarily waived onboarding fees. We have supported the restaurants' cash flow with frequency of payouts, and we're also partnering with residents to drive traffic for the whole industry.During COVID-19, it also become clear how pivotal the delivery of other categories is to people. And we have seen a strong shift, as mentioned before, into groceries and pharma. These categories have been booming even in markets where restaurants or orders have been decreasing. And the explosion of this segment happened over the last few weeks. We see now small business owners who want to come into our platform to deliver practically anything. We've also launched a service for customer to get anything delivered in some markets. We now offer new verticals in about 30 markets, and we are then also developing personal shopping services.We started looking into groceries about 2 years ago, and in the second half of last year, we started to push this harder. And that was, of course, a very good move because now we could respond very quickly. And this doesn't change our long-term strategies for vertical, but it definitely speeds things up. We believe it's a natural expansion or extension of us catering to what people want to have delivered. Food was the first strong vertical we got into, and now where there are also larger willingness to have other things delivered to each customer, to the customer, and that's also what we want to support.So we see this quick commerce as being a natural evolution of commerce via e-commerce, responding to the new needs of the modern consumers. And I'd like to spend a moment to explain what quick commerce is because it's going to be key over the next years to come. To take you through the journey, until early 2000, traditional commerce was dominating all trades. And then thanks to Amazon, in particular, e-commerce started gaining popularity. Now people didn't have to visit stores, but they got things delivered from mega warehouses. Deliveries are often done with delivery trucks and arrive 2, 3 days after order and, in some cases, even the next day.Pricing is key. So what we see now is the third generation of commerce, and that is quick commerce. Quick commerce is delivery of products in under 1 hour; with our Dmarts, even in 15 minutes. Quick commerce has fewer items, smaller baskets and, in particular, suitable for 1-person household. Delivery is often done by 2-wheelers and warehouses are small and very closely located to the customer. Main difference to e-commerce is the simplicity of fewer items and the speed being more important than price for the consumer. And we believe these are early days, but the quick commerce industry is expected to reach EUR 56 billion in Delivery Hero markets and, as I mentioned before, EUR 448 billion globally by 2030. This is truly exciting times.And now finally, to Emmanuel for our outlook. Emmanuel?

[Emmanuel Thomassin, CFO & Member of the Management Board]

Yes. Yes. So good morning, ladies and gentlemen. Thank you very much for joining. Can you jump in the next slide there? Thank you so much. So in terms of guidance, we'll stick to our guidance from EUR 2.4 billion to EUR 2.6 billion in terms of revenues, and the same for adjusted EBITDA, minus 19% to -- minus 14% to minus 18% plus additional investments up to EUR 200 million. We haven't spent so much of this EUR 200 million as additional investment in Q1. We will look at how we can invest this EUR 200 million opportunistically and to expand our leadership in the markets where we are today.In terms of guidance for the profitability, we expect Europe to be breakeven into 2020. In MENA, we are cautious and looking at the evolution of the last weeks, we see a negative impact up to EUR 50 million on EBITDA, which will be absorbed in the overall guidance of the group. So the EBITDA for MENA this year will be higher than the ones that we've seen in 2019.I think that was it for the outlook. Do you want to wrap up, Niklas?

[L. Niklas Östberg, Co]

Thank you, Emmanuel. So to wrap up, 92% year-on-year growth during Q1 despite a temporary dip due to some strict curfews. We increased our leadership positions to now account for 86% of our countries. We rolled out our third-generation platform, including groceries, Dmart and virtual restaurants. Maybe to be clear, Dmart is our local warehouses where we can optimize delivery for speed. And yes, we have also been helping local communities throughout the COVID crisis. As mentioned earlier, we reduced delivery times down to 28 minutes on average and last, now more than 560 (sic) [ 550,000 ] contracted restaurants on our platform.So with that, I'd like to thank you for listening in. I think this will be another fantastic year for us. And I now open up for any questions.

[Operator]

[Operator Instructions] The first question we received is from Ulrike Dauer from Dow Jones.

[Ulrike Dauer;Dow Jones;Reporter]

Can you hear me?

[L. Niklas Östberg, Co]

Yes. Thank you.

[Ulrike Dauer;Dow Jones;Reporter]

Congratulations on the new measures. So thinking on the quick commerce, there's demand for that as people want -- speed is more important than price. You see the market there. That's my first question. The second one, I read about the recent development with just eat takeaway. There seems to be some dissent as to the nature of the stake in the company after selling the delivery business to them. Why is that so? Is there scope for an agreement? Or is it going to be a lengthy process? And one thing, the focus now on 1Q, of course, but I was still looking for the final 2019 figures, the final EBITDA margin, is that really 34.8% rather than the prelim minus -- I mean, minus 34.8% rather than the prelim minus 29.6%? Or am I looking at the wrong figure?

[L. Niklas Östberg, Co]

Perfect. So I cover the first 2 questions and then Emmanuel on the last one. Yes. So we see a strong urge from our customers to want to have things fast. One reason is, of course, that they cannot go safely to the grocery stores, so they don't feel comfortable going to the grocery stores. And I think they also do better in staying home by letting the professionals do the delivery and pick up for them. So therefore, of course, in these times, there's a particular need of getting things quicker. But we also see a change in modern -- or in new consumption patterns. So in the past, I don't know, people often thought about weekly or even biweekly groceries. They went somewhere, they bought a lot of groceries and plan it out 2 weeks in advance. People don't really want to do that anymore, in particular the young generation. They think about what they want to eat an hour at max before they eat. And of course, then you want to have things and what you're craving for at that moment and having something that it can get delivered, in our case, even in 15 minutes, is then very helpful.Sometimes it could also be that you maybe have something at home, but maybe you lack something, maybe you lack your pasta or maybe you lack something to make that meal happening. So we see more and more people also complementing their existing purchases with additional items. And when you have those local stores so close by and you can get things in 15 minutes, you also see a big demand for people actually using that service. So I think COVID has probably helped a little bit here to really start booming this industry. But this is something we already saw before COVID-19. It's only been exponentially growing in the last weeks.

[Ulrike Dauer;Dow Jones;Reporter]

And you're saying 15, 1-5 minutes, right, not 50, 5-0?

[L. Niklas Östberg, Co]

Yes. We are able to get it below 15 minutes from our Dmart stores. From grocery stores, it takes a bit longer because it is a little bit different picking. They are not optimized for it. They're not as automated. They're not built for quick picking and they're also often further away. So 15 minutes is for our Dmart, so we have 100 -- approximately 100 Dmart stores as of today.

[Ulrike Dauer;Dow Jones;Reporter]

In Europe or where -- in which area?

[L. Niklas Östberg, Co]

We have them now in all segments, in particular, in Middle East and Asia. And then the last 2 weeks, we also launched it in Chile and Argentina, so in Latin America. So -- but also coming to Europe.

[Ulrike Dauer;Dow Jones;Reporter]

What about Europe or Germany? Okay, it's coming.

[L. Niklas Östberg, Co]

We don't operate in -- yes, it will come Europe.

[Ulrike Dauer;Dow Jones;Reporter]

So not in Germany. Yes, not in Germany, of course.

[L. Niklas Östberg, Co]

Yes. Sorry for that. I hope someone else will.

[Ulrike Dauer;Dow Jones;Reporter]

I was getting excited.

[L. Niklas Östberg, Co]

Yes. Yes. And then in regards to just the takeaway, we can't really comment on that. We -- I don't know, we -- yes, I can't really comment on that. Sorry for that. I wish I could. Then in regards to Q1 EBITDA, Emmanuel?

[Ulrike Dauer;Dow Jones;Reporter]

For the 2019.

[L. Niklas Östberg, Co]

'19.

[Emmanuel Thomassin, CFO & Member of the Management Board]

2019, so yes, Ulrike, we published our numbers today for 2019, which actually confirm what we announced early February. So we generated EUR 1.5 billion revenues last year, and adjusted EBITDA margin was minus 29.6% or, in absolute terms, EUR 431 million.

[Ulrike Dauer;Dow Jones;Reporter]

Yes. Because I couldn't find the 29.6% in the annual report summary, there was one for 34.8%. Maybe you can -- or your colleague can message me on which page to find that because I don't want to write anything wrong, not confirming the previous figure.

[Emmanuel Thomassin, CFO & Member of the Management Board]

Yes. As soon as I can find that, I tell you. Thank you.

[Operator]

The next question we received is from [ Anna Tyson ] of Reuters.

[Unknown Attendee]

Can you hear me?

[L. Niklas Östberg, Co]

Hey, there. We could hear you.

[Emmanuel Thomassin, CFO & Member of the Management Board]

Yes.

[Unknown Attendee]

I was just wondering if you could give us some details about the costs you talked about related to the pandemic. You say that you can absorb them in your annual outlook but just wondering if you could give more details on those costs.

[L. Niklas Östberg, Co]

Yes. I can start and maybe Emmanuel can fill in. So there are a lot of costs. And then we mentioned the support program for the fund that we're setting up for riders. We've also done a lot of initiatives to help also distribute face mask, sanitizers. There are a lot of initiatives that have been costing us money. We have also helped the restaurants to get onboarded for free, which is also a cost for us as well as giving them promotional packages to kick-start their business when they get online. We've given free delivery in -- to enable customers to order from restaurants in close-by areas. It's supposed to help the restaurants but also the consumers to start driving orders in the time -- and in particular, in the first weeks when we saw a rapid decline in orders. So those are some of the direct costs.Then of course, there is a cost with -- if you look at Middle East where we have had a couple of curfews where nothing has been allowed and, in some cases, not even delivery has been allowed. And of course, then we have a cost of operating our business, but we don't have any orders and revenues during those hours. So we expect up to EUR 50 million costs in our MENA segments due to the curfews. Luckily, we now see that things have -- thanks to a lot of work, things have returned to normal. And in many cases, we are now growing faster than we did ever before with the exception of a few markets where we still have those curfews. So therefore, we will be able to absorb those costs by slightly better performance during the rest of the year. So those are some of the costs.

[Emmanuel Thomassin, CFO & Member of the Management Board]

Yes. I think if I may add, we had some operations and onboarding costs, we wanted to -- before that actually, the demand was the bigger problem for the supply, so once we secured the supply by onboarding the restaurants, as Niklas said, onboarding them faster than ever and also adding new riders during this time to make sure that we can deliver the meal that have been ordered by the people locking down. So that's had some cost impact. And in terms of, in general, we also, as Niklas said, due to lockdown and curfews, we're also missing orders. So that indirectly, it had a cost impact because we're missing the revenues. So I think that's the 2 sides of it.

[L. Niklas Östberg, Co]

And we have also been delivering thousands -- daily, we are delivering thousands of orders to help workers in many of the countries. And we also decided to help restaurants even further in a market where we are now, using Ramadan, which is a month of giving, so we decided that we will also start giving back to restaurants in May in some of the Middle Eastern markets. So that's more of a sign or a gesture that we want to give to the restaurant, that community, because they struggle.

[Operator]

The next question we received is from [ Karen Crock of Fortis ].

[Unknown Analyst]

Can you hear me?

[L. Niklas Östberg, Co]

Yes.

[Unknown Analyst]

So my question is -- you mentioned there is a large increase of restaurants joining the platform. I was wondering, at the same time, how many restaurants you lose. And how is the trend in different regions? Is it similar? Or is that different in Middle East compared to the rest?

[L. Niklas Östberg, Co]

So yes, we have a lot of restaurants joining our platform, but a lot of restaurants are if -- they've chosen to shut down completely or they are forced to shut down in countries where they have curfews or during certain times that they shut down. Right now, we still have more than 75% of restaurants active. So they -- so that's still a very good sign. And we expect that most of those who are not active will come back to be active. But it's too early to say how many restaurants will not make it. Unfortunately, I think even if we try all our best, we will not be able to save every restaurant. So we should also expect that there will be a very large -- there will be a restaurant fallout from this crisis. Unfortunately, we don't know how large this will be. I think it also depends very much on the government's action. But I think in some markets, there is a strong government support that they'll be able to compensate or lend for the missing value that they've lost in revenue. But in some markets, that safety system doesn't work in the same way. We're doing our best, but it's -- we still don't know how it will turn out. We hope for the better, but there will be an increase in number of defaults from restaurants as well.

[Unknown Analyst]

And is the situation different across the region? Or is there any particular [ signal ]?

[L. Niklas Östberg, Co]

It's too early to say. I think Middle East has been extra hard hit by the curfews, but I think we have a very strong business in Middle East, so we can provide them with a lot of orders and a lot of business even if they cannot have in-dining consumptions as usual. I think Asia has turned out to be not very impacted. They handled the crisis very fast, and therefore, we don't think there will be any impact there or very little impact what we have seen. The question is more than in Europe and in Latin America where we can see more impact. But here, it's also depending on country legislation or country government support that has been given. I think -- yes, so it will be market-by-market, also on government interventions.

[Unknown Analyst]

And if I may, I would like to ask one more question. On your deal with Woowa and South Korea, early April, there's news from antitrust regulators over there saying -- some media report saying that they want to put the deal on hold indefinitely. I was just wondering how is the development over there at the moment.

[L. Niklas Östberg, Co]

Yes. So we've also seen a couple of media reports but cannot confirm that there has been any communication with the regulator, rather the opposite. So the time line remains as it was before. We expect the closing to happen in H2 2020. We do not expect also any impact from COVID or similar to the transaction time line. We keep on working with the KFTC on their request for information, very productive discussions and expected to close this as guided before. But [ Anna ], we cannot comment on the articles, especially not the one from -- there have been many articles, I should say, but of course, the one which has got the most attention is the ones which are in English, which are very small in Korea, but of course, they are being vividly reported by Europeans and Americans looking at the Korean market, but we cannot confirm those data. We actually haven't heard those data from KFTC that has been referred to in these reports. I think -- yes, not much rather, unfortunately.

[Operator]

The next question we received is from [indiscernible]

[Unknown Analyst]

I've got a question with regard to your outlook. First of all, the Woowa acquisition. Is it included in the outlook, especially on the margin and on the sales growth of 60% as Woowa the second half of 2020? And the second question is there were announced additional investment of EUR 200 million. Do I understand it right, this has to be added to your EBITDA outlook as a deficit then?

[L. Niklas Östberg, Co]

Emmanuel, do you want to cover?

[Emmanuel Thomassin, CFO & Member of the Management Board]

Yes, sure. Yes, yes, sure. So Woowa is not included. Woowa is not included in our guidance or numbers that we showed there. As Niklas just mentioned, we expect the transaction to be closed during the second half of this year, and this is not including in our guidance as we are -- we see a moving target, but we do not include it. The EUR 200 million, as I mentioned before, are of -- these additional investments are part of the EBITDA guidance. So the EBITDA guidance are minus 14% to minus 18%. We stick to it, plus the EUR 200 million investments that we'll invest opportunistically depending on the market evolutions during this year. As I mentioned before, we didn't spend so much from the EUR 200 million in the first quarter. Hence, we have still the firepower to invest during the last quarters for the year from Q2 until Q4. But this is coming on top of the minus 14% to minus 18% EBITDA margin.

[L. Niklas Östberg, Co]

Yes. It's excluded, I think it's a valid point what you bring up there. We always try to report on a pro forma basis. So that means we look -- if you would have acquired something, we would have included it both from the previous year or this year to have a true transparent picture of our growth. While we often see our competitors reporting including acquisitions, that means they often show 50%, 60% growth, which includes the larger M&A transactions, which we don't think is really a fair view of illustrating things. But with us, you will try to have the transparency and showing things included, we just grow simply much faster.

[Operator]

Then we received a follow-up question, Ulrike Dauer of Dow Jones.

[Ulrike Dauer;Dow Jones;Reporter]

I just had a follow-up question on the question that [ Anna Tyson ] asked. Could you put a lump sum figure on the investments or on the costs you had related to the COVID-19 in the first quarter? Is there any way you could like sum it all up and give us a lump sum figure?

[L. Niklas Östberg, Co]

I think, we could not give that, but I think it's fair to assume that up to EUR 50 million is the larger proportion. Of course, we also had lot of costs in other areas, but we've also seen a lot of growth in other areas. So even if it has been even more costs associate to it, we have been able to counter those with larger growth, what we see now in -- towards the end of the current phase of the COVID-19. So it will be in those regions.

[Operator]

And the next question we received is from [ Sebastian Devereux ] of [indiscernible]

[Unknown Analyst]

I have couple of questions for you, in particular, with -- particularly regard to your supermarket delivery. First of all, I didn't quite catch the other country where you launched in the last 2 weeks. You said -- in the question you answered for Ms. Dauer, it was Argentina and what was the other one?

[L. Niklas Östberg, Co]

Chile.

[Emmanuel Thomassin, CFO & Member of the Management Board]

Chile.

[Unknown Analyst]

Chile. All right. Cool. The more particular questions are you said something about the personal shopping service. So it's -- I figured it's not articles you have in stock in your warehouses, but rather that people can order anything they want. So I was wondering how do you realize this kind of service. And furthermore, will you roll this out to other markets? And is this, in your opinion, a major growth prospective for Delivery Hero in general? And furthermore, can you give some information on what proportion of your revenue you are at the moment making of delivery from restaurants as opposed to delivery from some of the markets?

[L. Niklas Östberg, Co]

Yes. Emmanuel, do you want to cover this? And unfortunately, I will have to excuse myself here. I'm having some conflicting calls, but Emmanuel will be able to answer those questions. And thank you again for listening in. Thank you very much.

[Emmanuel Thomassin, CFO & Member of the Management Board]

So after today like -- just like maybe to the first question in terms of countries. So Argentina, Chile are the ones. We are today in -- we have 104 Dmarts, this is how you call it, and Dmart in 9 countries today. Are we going to enter new countries and other countries? Yes. And we're going to deploy -- we're going to implement new Dmarts across the year. We gave the target of 400 new Dmarts during this year. So we're on track in this regard during 2020. Today, the percentage of revenues, Dmart is still low compared to what we've seen today, it's 1% of the revenues of Delivery Hero. But as we've seen, with this crisis, it's growing extremely fast, the demand is high, and we expect this segment to become even larger over the year. So we think this is -- this quick commerce that Niklas mentioned as the new category and Dmart, in particular, are going to drive growth for the next year to come for Delivery Hero and is becoming a new vertical for us. So a very important investment strategically. And if you wish, like in 9 countries where we are, we are -- we started in Turkey. We also launched in Kuwait, in UAE. We have our some Dmart in Singapore and Taiwan and, as I just mentioned, like Argentina, Chile. And yesterday, we launched for the first time in Uruguay, the first Dmart.

[Unknown Analyst]

All right. And so is this kind of delivery from the Dmart, is that -- I see or I assume people have a limited catalog of articles they can order. Is that like every -- like is that the service you offer? Or from what Niklas earlier said, I figured or it sounded like you offer like a pretty small shopping service, which also goes over the portfolio you have in the Dmart yourself? Is that right? Or did I get that wrong?

[Emmanuel Thomassin, CFO & Member of the Management Board]

It's not completely true -- right. It's -- what we have is like Dmarts where we have like so-called maximum 2,500 SKUs. So 2,500 are products that we offer in this Dmart. We also do delivery for groceries. So we work with grocery in some countries where we work, for example, with [ Camfor ] in MENA where actually our customers can order from this grocery or supermarket, and we will deliver for them. So this is 2 different stuff. We don't have personal shoppers yet. And then we don't also -- not plan right now to enter this area. So our focus are on Dmart. So that belong to us where we are the principal, where we buy the goods and sell the goods. And we do offer also some delivery for groceries and supermarket.

[Unknown Analyst]

And will you grow both segments, delivery from -- grocery delivery from supermarkets and Dmarts on the other side? Will you grow both of them? Or is your focus on one, in particular, one of them?

[Emmanuel Thomassin, CFO & Member of the Management Board]

We are going to develop both. Our focus is going to be on Dmarts mainly, but we do also grocery. We signed also some agreements, exclusive agreement during the COVID-19 crisis to offer these services for the customers' lockdown. So we have -- we also helped the authorities to make sure that the population gets the goods that they needed during this crisis, continue to do so obviously now. And that was the case in many part of the regions, in Europe, in Greece, for example, but also in MENA and so on and so forth. So we're doing both. Our focus this year, when I say the 400 Dmart, is really our focus in terms of setting up this Dmart across the segments where we are, that will be our main focus.

[Operator]

[Operator Instructions] So as we do not receive any question, I hand back to the speakers for some closing remarks.

[Emmanuel Thomassin, CFO & Member of the Management Board]

Well, thank you, everyone, for your support and your interest today. On behalf of all our Delivery Hero employees, we are proud of what we reached in the first quarter, and we will continue to grow our company. So thank you very much for your support and interest, and have a good one. Stay safe.