Foodpanda Pakistan’s €11.2 Million Profit: Milestone or Mirage?

Foodpanda Pakistan has reported its first-ever annual profit, according to Delivery Hero GmbH’s 2024 financial results. The company posted a net income of €11.2 million, marking a major shift after years of continuous losses.

Despite the positive result, Foodpanda Pakistan continues to face financial challenges. The company still carries a negative equity position of €137.1 million, reflecting accumulated losses from previous years. Management acknowledged that while the profit marks an important milestone, full financial recovery will require consistent profitability over several years.

In 2023, Foodpanda Pakistan implemented critical strategic adjustments that resulted in the reduction of unsustainable discounts, which in turn increased the average order value. Delivery expenses were reduced by 15% as a result of the integration of enhanced delivery technology and local fleet partnerships.  The company reduced operational expenses by terminating underperforming dark kitchens and renegotiating contracts with its suppliers.

The Pakistani competition authorities continue to monitor the market closely due to their regulatory concerns.  The delivery market has not implemented direct prohibitions in conjunction with penalties.  Currency volatility risks will impact the company’s group-level financial consolidation, as the weakened Pakistani rupee will impact results denominated in euros.

Delivery Hero described the 2024 performance as a “proof point” for its operations in Pakistan and reaffirmed its focus on achieving sustainable growth. The company indicated that maintaining profitability while navigating regulatory pressures and market dynamics would be crucial in the coming year.

While Foodpanda Pakistan’s 2024 profit is a significant achievement, the company’s long-term stability will depend on its ability to sustain operational improvements and manage external risks effectively. Market watchers will be closely monitoring its performance throughout 2025 to see if the turnaround can be maintained.