(Reuters) – German food and shopping delivery group Delivery Hero adjusted its annual gross merchandise value (GMV) forecast slightly upwards on Tuesday after reporting a better-than-expected figure for the third quarter.

The title climbed 4.9% in electronic transactions in Frankfurt.

The Berlin-based company now forecasts GMV growth in 2023 at the high end of its previous forecast range of 5% to 7% at constant exchange rates.

The group generated quarterly GMV, a common metric for delivery companies, of 11.69 billion euros, beating analysts’ estimate of $11.57 billion in a company-provided consensus.

After the pandemic-led surge in orders, Delivery Hero struggled to achieve long-awaited profitability amid sustained growth as investor confidence in the sector began to wane.

“Following another strong quarter, we can confirm that we are on track to achieve our full-year EBITDA target, putting us in a good position to achieve our long-term profitability targets,” declared the group’s financial director, Emmanuel Thomassin, in a press release.

Delivery Hero expects to improve its adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) by more than €850 million in 2023, compared to a loss of €467.2 million last year.

(Reporting Ozan Ergenay and Michal Aleksandrowicz in Gdansk; Dagmarah Mackos, edited by Blandine Hénault)

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