By Tristan Veyet and Marleen Kaesebier
(Reuters) -Delivery Hero said on Monday it had delivered on all of its annual targets last year and remained "fully committed" to its 2024 strategy, but shares extended the previous session's sharp drop as its outlook failed to reassure investors.
The German takeaway company's shares fell more than 20% on Friday after a media report that talks for the potential sale of its Southeast Asian business had collapsed - an assertion it dismissed, saying discussions were ongoing.
In a preliminary full-year results release on Monday, the group reported a gross merchandise value - a common metric for delivery firms measuring the total value of all goods sold - of 47.6 billion euros ($51.3 billion) last year, up 6.7% year-on-year and in line with the company's 5-7% guidance range.
Delivery Hero said it expects to generate positive free cash flow (FCF) in 2024, but analyst Clement Genelot from Bryan, Garnier & Co, said that a "reassuring" outlook for the measure may not be enough to fully remove investors' concerns about 2026-27 liquidity.
"As of now, investors still don't believe in Delivery Hero's ability to boost its FCF fast enough to be able to repay and refinance its 2026-27 debt maturity wall without a capital increase," Genelot added.
The company's shares were down 3.9% as of 1135 GMT.
Delivery Hero also said earnings before interest, tax, depreciation and amortization (EBITDA) had "exceeded" 250 million euros last year, against a 623.6 million euro loss a year before.
The company has been trying to divest its loss-making Southeast Asian business in a wider effort to reach profitability while maintaining growth, as investor concerns regarding the company's cash position grow.
British peer Deliveroo said last month its 2023 earnings would be slightly above guidance.
($1 = 0.9277 euros)