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Deliveroo PLC on Thursday reported a narrowed annual loss as it progressed on its ‘path to profitability’; by an adjusted measure, it even swung to profit in the second half.
The online food delivery service reported total loss after tax of £294.1 million in 2022, narrowed from a loss of £330.5 million in 2021.
Of this, its loss from discounted operations widened to £51.6 million from £41.3 million, while its loss from continued operations narrowed to £242.5 million from £289.2 million.
Revenue from continuing operations rose 14% to £1.97 billion from £1.74 billion, as its gross transaction value grew by 8.6% year-on-year to £6.85 billion from £6.30 billion the year prior.
Deliveroo explained the revenue growth reflected an increase in the revenue take - revenue as a percentage of gross transaction value - to 28.8% from 27.5%.
Chief Executive Will Shu said: ‘Our team has delivered in difficult market conditions, with continued growth and share gains in our key markets. I’m particularly pleased that the company reached adjusted earnings before interest, tax, depreciation and amortisation profitability in the second half of last year. This is a significant step on our path to sustainable cash generation, and we achieved this milestone a year earlier than our guidance by executing our strategy successfully despite headwinds from the market environment.’
Deliveroo reported an adjusted Ebitda loss from continuing operations of £45.0 million in 2022, narrowed from £100.0 million the year prior. It the second half of 2022 it achieved adjusted Ebitda profitability of £6.6 million.
The company said it took steps to optimise consumer fees, optimise its logistics network and to optimise its marketing spend during the year. This, it said, drove the majority of its ‘path to profitability’ in 2022.
Looking forward, Shu said the macroeconomic outlook for the year ahead remains ‘uncertain’. Nonetheless, the company said it expects growth transaction value growth to be in the low- to mid-single digits at constant currency in 2023.
It also expects adjusted Ebitda to be in the range of £20 million to £50 million in 2023, weighted to the second half of the year.
Shares in Deliveroo were down 2.8% at 87.07 pence on Thursday morning in London. The stock is down 25% in the past 12 months.
Deliveroo declared no dividend, unchanged from a year prior. It added that it does not expect to declare any dividends for the ‘foreseeable future’.
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