Deliveroo reaches ‘key financial milestone’ with first half-year profit

08-Aug-2024 - Last updated on 08-Aug-2024 at 11:30 GMT

Deliveroo has reported positive profit in its half-year (H1) financial report for the first time since the business launched back in 2013, describing it as a ‘key financial milestone’.

The delivery aggregator reported strong growth in adjusted EBITDA in the six months to 30 June 2024, up 57% to £62m (H1 2023: £39m).

Profit for the period was £1m, compared to a loss of £83m in H1 2023.

Deliveroo founder and CEO Will Shu says the group’s performance was driven by ‘effective execution of growth and profitability initiatives’.

This includes innovation in its Plus loyalty programme, including the introduction of a new premium tier, Plus Diamond; strong growth in grocery; and new retail partnerships.

The group has also seen continued improvement in net promoter score (NPS), with June 2024 the highest level since mid-2021.

“I strongly believe that consumer trust is the key to unlocking further growth in this industry and that is why we are relentlessly focussed on achieving a flawless delivery experience, along with ensuring fair pricing for our consumers,” says Shu.

Growth was reported across key metrics with gross transaction value (GTV) across the business up 6% and revenue up 2%, while orders returned to growth of 2%.

In the UK & Ireland, constant currency GTV growth was 7% for the period and 5% in international, where orders returned to growth driven by improvement in France and continued strength in UAE and Italy.

The group adds that a new £150m share buyback reflects both financial progress in the last year and confidence in the outlook, with Shu encouraged by positive inflections in consumer behaviours across most markets.

GTV growth in constant currency is anticipated to be in the range of 5-9% for the year, while adjusted EBITDA is expected to be in the upper half of the previously-guided range of £110-130m.

“The Deliveroo platform is more powerful than ever, and we remain responsive to the external environment while continuing to optimise our proposition for consumers, riders and merchants,” continues Shu.

“We operate across attractive verticals, in large, underpenetrated markets, and it's clear that there is a lot of room for growth in our industry.

“I want to thank the Deliveroo team whose talent and expertise is invaluable as we continue to capture the many opportunities ahead of us.”