Superapp Grab has reported a loss of US$435 million ($601 million) in 1QFY2022 ended March, 35% lower than the loss recorded in the previous corresponding quarter at US$666 million ($902 million).

This was attributed to the elimination of non-cash interest expense of Grab’s convertible redeemable preference shares that converted to ordinary shares in December 2021. This will no longer be incurred going forward, the company said in its results statement.

Revenue in 1QFY2022 stood at US$228 million, a 6% growth y-o-y and 87% growth q-o-q as total incentives in the deliveries segment moderated.

This is also the first quarter that included Jaya Grocer financial results since Grab completed its acquisition of the Malaysian supermarket chain at the end of January this year.

Grab’s gross merchandise value (GMV) grew by 32% y-o-y, driven by mobility segment acceleration, strong core food and groceries growth as the company expanded its merchant selection and contributions from Jaya Grocer.

See also: <a class='gtm_see_also_1_inread' style='text-decoration: underline;' href='/capital/results/ntuc-income-reports-premium-growth-fy2021-lower-net-operating-surplus-fair-value?utm_source=website&utm_medium=article&utm_campaign=ONPAGESEO'>NTUC Income reports premium growth for FY2021 but lower net operating surplus on fair value loss</a>

Adjusted EBITDA improved by approximately US$17 million compared to the preceding quarter as total incentives in its deliveries segment came down. As a percentage of GMV, adjusted EBITDA margins declined to -6% in the quarter compared to -3.1% in the same period a year ago, but improved from -6.8% achieved in the previous quarter.

As at March 31, Grab has cash liquidity of US$8.2 billion, a decrease from US$9 billion as at December 31, 2021. This is primarily due to net cash outflow from operating activities and Jaya Grocer’s acquisition.

Grab’s CEO and co-founder Anthony Tan said its first quarter results are a testament to the resilience of Southeast Asia’s economy, moving past the worst of the pandemic restrictions. “We are optimistic that our business will continue to strengthen as more countries pivot to living with Covid-19,” he added.

Looking ahead, the company is focused on growing sustainably by being disciplined with its capital, optimising its fixed cost base and tapering its incentive spend as the market rationalises, said Grab chief financial office Peter Oey.

See also: <a class='gtm_see_also_2_inread' style='text-decoration: underline;' href='/capital/results/serial-system-reports-lower-1qfy2022-earnings-allowance-obsolete-stocks?utm_source=website&utm_medium=article&utm_campaign=ONPAGESEO'>Serial System reports lower 1QFY2022 earnings on allowance for obsolete stocks</a>

“We believe these actions will put us on a path to achieving segment adjusted EBITDA breakeven for deliveries by the end of 2023.”

Shares in Grab closed 20 US cents lower or 7.33% down on May 18 at US$2.53.

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