BENGALURU - Grab Holdings reported its first-ever quarterly profit on Feb 22 and announced a maiden share repurchase plan, but a weak annual sales forecast fanned growth worries and weighed on the ride-share and food-delivery firm’s shares.

The Singapore-based company forecast fiscal 2024 revenue between US$2.7 billion (S$3.6 billion) and US$2.75 billion, the midpoint of which was below analysts’ estimates of US$2.8 billion, according to London Stock Exchange Group data. Grab’s US-listed shares were down 5 per cent at US$3.28 in pre-market trading.

The forecast took the sheen away from Grab’s earnings, while the company also said it expects an annual adjusted core profit.

“There will be revenue acceleration in the years beyond 2024 as investments in our new products bear fruit,” Grab chief financial officer Peter Oey said.

Grab and rivals such as Indonesia’s GoTo benefited from a boom in food-delivery services during the pandemic, but the growth is slowing. Grab’s ride-share growth has only just hit pre-pandemic levels.

Grab has trimmed its workforce, as well as cut back on some incentives and technology costs over the past two years.

The company said on Feb 22 it will repurchase US$500 million worth of Class A ordinary shares, and announced an early payment of the remainder of a term loan. Uber unveiled its first-ever share buyback last week.

Grab forecast full-year adjusted core profit of US$180 million to US$200 million, compared with estimates of US$135.2 million.

The company reported fourth-quarter revenue of US$653 million, beating estimates of US$629 million. Mobility revenue rose 26 per cent, helped by holiday-quarter travel demand, while delivery revenue increased 20 per cent.

Grab posted a net income of US$11 million in the fourth quarter, helped in part by a “reversal of an accounting accrual”, according to the company. REUTERS