Delivery Hero moves up into the Dax
The international food delivery service Delivery Hero joins the German Stock Index (Dax). The Berlin-based company takes over Wirecard's place in the leading index, as announced by Deutsche Börse in Frankfurt on August 18, 2020. The payment service provider is insolvent following a balance sheet scandal worth billions.
Within a few weeks, Delivery Hero will be the second Berlin company to rise to the top of the stock market league, after the real estate group Deutsche Wohnen. Previously, the German capital had not been represented by a company in this prestigious segment for 14 years.
Delivery Hero has 1300 employees in Berlin
The food delivery service is among the beneficiaries of the Corona pandemic. The former start-up operates ordering platforms for food from local suppliers in more than 40 countries and employs 25,000 people, around 1,300 of whom work in Berlin. They arrange delivery services between Restaurants and their customers. Most of the money comes from commissions paid by participating restaurants. However, Delivery Hero also operates its own delivery services and canteen kitchens.
Emerging markets are the Middle East and North Africa
Since last year, the company has no longer accepted orders from German customers: The German business with the brands Pizza.de, Lieferheld and Foodora was sold. The Dutch competitor Takeaway has integrated it into its own platform Lieferando. Delivery Hero 2019 has made more than half of its sales in the Middle East and North Africa.
Delivery Hero is not yet profitable
The company is still in the red. According to preliminary figures, the loss before interest, taxes, depreciation and amortization adjusted for special items amounted to 319.5 million euros in the first half of the year. The final half-year balance sheet will follow on August 27. Thanks to the strong growth in the Corona crisis, the Berliners have already raised the forecast for the entire year. Sales of between 2.6 and 2.8 billion euros are expected, almost double the previous year's figure.
Symrise must still wait for the Dax to rise
Founded in 2011, the company is the second youngest Dax member after the Bayer spin-off Covestro. The fragrance and flavorings manufacturer Symrise, based in Holzminden in Lower Saxony, was also given the opportunity to move up the Dax.
Deutsche Börse tightens its rules and regulations
Wirecard had lost considerable value on the financial markets as a result of the balance sheet scandal involving suspected air bookings. In view of the insolvency of the Dax member, Deutsche Börse also revised its rules and regulations following consultations with market participants. Under the new rules, insolvent companies are now removed from the Dax selection indices with two trading days' notice. Wirecard had only taken Commerzbank's vacant place in the Dax in September 2018.
Dax membership with special value for international investors
Index changes are particularly important for funds that exactly replicate indices. There, they must then be reallocated, which usually has an impact on prices. However, membership of the Dax is also a question of prestige: especially for international investors, the most important German stock market barometer is a figurehead for the economy.
Last edited: Thursday, 20. August 2020 12:34 Uhr