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Deliveroo PLC shares jumped on Thursday after the firm hailed ‘key financial milestones’, achieving first-half profit.
Deliveroo shares rose 10% to 140.81 pence each in London on Thursday afternoon.
The good delivery company said revenue in the six months to June 30 rose 0.8% to £1.03 billion from £1.02 billion a year prior.
It swung to a pretax profit of £4.3 million, from a loss of £57.6 million.
It was a first half where ‘key financial milestones’ were reached, with Deliveroo hailing ‘positive free cash flow’ alongside the swing to profit.
Adjusted earnings before interest, tax, depreciation and amortisation jumped 57% to £61.7 million from £39.4 million. It achieved free cash flow of £3.2 million, compared to an outflow of £27.7 million a year earlier.
The firm also announced a new £150 million share buyback, which ‘reflects financial progress in the last year and confidence in the outlook’.
‘I am pleased with the performance we have achieved this half, which was driven by effective execution of our growth and profitability initiatives. As a result, we reached two major financial milestones: positive free cash flow and positive profit for the period,’ Chief Executive Officer Will Shu said.
‘Looking ahead, while there is continued uncertainty in the external environment, I am encouraged by the inflection we are currently seeing in consumer behaviour in many of our markets. 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. 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.’
Looking ahead, it expects its full-year adjusted Ebitda to be at the upper half of its £110-130 million range. It still expects to be free cash flow positive for the whole of 2024.
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