Deliveroo rebounds from £32m loss

Deliveroo has posted a profit for the first time after making a £32m loss last year.

 

In its latest full-year results, the British food delivery company reported its average order frequency had increased across every annual cohort at group level, while adjusted EBITDA was up 52% to £130m.

 

It also delivered £3m in profit for the year and revenue growth of 5% in constant currency.

 

Deliveroo said it experienced “positive signs of consumer engagement” despite “continued macroeconomic uncertainty in major markets”.

 

Earlier this week, the business confirmed it will exit its Hong Kong operations through selling certain assets to Singaporean rival Foodpanda and closing other assets after it concluded Deliveroo “could not reach a sustainable and profitable scale without considerable financial investment”.

 

It also plans to increase its selection and launch its growing retail proposition in “several markets” after figures showed its grocery arm reached 16% of group GTV (gross transaction value) in H2 2024.

 

During the period, Deliveroo secured exclusive contracts and extensions with Dishoom, Nando’s, Joe & the Juice, Wingstop, Pho and Bleecker Burger in the UK.

 

The British food delivery platform was founded by William Shu and Greg Orlowski in 2013 but had been struggling to cash in following its highly anticipated flotation on the London Stock Exchange in 2021.

 

At the time, Deliveroo had announced an initial public offering valuing the company at £8.8b, making it the biggest London stock market debut since that of mining and commodity trading firm Glencore in 2011, but it ended up pricing its shares at the lowest end of the range it had previously suggested, at £7.6b.

 

Will Shu, founder and chief executive of Deliveroo, said: “Over the past year, we have been relentlessly focused on making the Deliveroo experience even better. The robust results we’ve announced today, with our first full year profit and positive free cash flow as well as GTV growth across our verticals, demonstrate that our strategy is working.

 

“Whilst the consumer environment remains uncertain, I am confident that we can continue to deliver growth by focusing on the levers in our control: supporting our restaurant partners to meet untapped consumer demand around new occasions, expanding our grocery and retail offering, and continuously improving our cost volume profit. I want to thank the team for all their hard work and expertise in 2024 which will help us to capture the many opportunities ahead of us.”