Delivery platform Talabat raises 2024 dividend after strong growth run

Dubai: The delivery platform Talabat rang in $346 million as 2024 net profit, from an impressive 64% increase year-on-year, with non-food orders now seeing a higher rate of growth. The DFM-listed entity’s revenues came to $2.95 billion, up 32%.

The net profit margin of 4.7% for 2024 has impressed market analysts, who say this would be ‘among the higher ones in a highly competitive industry’.

Talabat is ‘on track to pay dividends of $110 million’, which is an ‘upward adjustment from the previously disclosed minimum dividend payment of $100 million’.

This comes after a ‘strong’ fourth quarter performance.

The numbers were built on a 'record' $7.4 billion in GMV (gross merchandise value) and 'exceeding both our revenue and adjusted EBITDA guidance'. (The GMV tally represents the overall order value that the platform booked during 2024.)

"Looking ahead, we are confident in our reiterated guidance and our ability to continue driving sustainable growth and profitability," said Tomaso Rodriguez, CEO of Talabat.

Will Talabat stock price ride on results?

Where Talabat will be hoping for some boost is on the stock price, currently at Dh1.47. It gained 1.38% yesterday (February 12), but will need some more lifting to get to the IPO price of Dh1.6.

Balance-sheet strength

At the end of 2024, Talabat's cash position improved to $419 million and with a net cash position of $322 million. "The company continues to be well positioned to fund future growth, dividends and opportunistic acquisitions," said a statement.

Talabat's standout numbers from 2024:

• The GMV hit $7.4 billion, up 23% year-on-year with growth across both the GCC and non-GCC segments, and across both its food and grocery and retail verticals.

• Within the six GCC markets, the GMV was $6.3 billion, up 20% and representing 85% of total GMV.

• The non-GCC GMV 'grew faster' to $1.1 billion, up 42% year-on-year, which is 15% of total GMV.

• The food GMV was $5.5 billion, up 16% year-on-year, making up 75% of total GMV.

• The G&R GMV grew 'faster' to $1.9 billion, up 47% year-on-year, representing 25% of total GMV.