Delivery Hero CEO apologizes to investors after 30% stock plunge

The CEO of European food delivery firm Delivery Hero has apologized to investors after shares of the company dropped more than 30% on disappointing earnings guidance for 2022.

“Today our share price dropped 30%! I’m truly sorry for all shareholders! I’m in your boat,” Niklas Östberg, Delivery Hero’s CEO, said via Twitter on Thursday.

Despite reporting a jump in fourth-quarter sales, Delivery Hero’s shareholders were spooked Thursday after the firm announced cautious estimates for the coming year.

Delivery Hero said it expects overall sales volumes of 44 billion to 45 billion euros ($50 billion-$51 billion) in 2022, falling short of analysts’ expectations.

The company also forecast a negative margin on core profit of between 1% and 1.2%.

Nevertheless, Östberg vowed to continue with Delivery Hero’s current strategy, with the promise that it would eventually pay off.

Delivery Hero shares plunged over 30% on Thursday, their worst drop on record.

On Friday, the stock fell a further 12%. The company has lost nearly 6.5 billion euros ($7.4 billion) in market value since Wednesday’s close.

Analysts at JPMorgan and Barclays cut their price targets for the stock on Friday.

Delivery Hero was one of the darlings of the coronavirus pandemic, with shares surging in 2020 as investors flocked to beneficiaries of “stay at home” trends such as online food ordering and video conference tools.

Delivery Hero has lost roughly two thirds of its value in the last 12 months, while Deliveroo and Just Eat Takeaway.com have fallen 50% and 58% respectively.

In Delivery Hero’s case, investors are concerned the company is taking longer than rivals such as DoorDash and Uber to attain adjusted profitability.