Deliveroo posts £300m loss despite revenues of £1.9bn
The food app business recorded a similar loss as previous year, with results being “ahead of expectations”
Food delivery business Deliveroo reported a loss for the year of almost £300m, according to its results for the FY22 period.
Despite the loss, Deliveroo said it delivered a “strong year” of operational and financial performance which was ahead of expectations.
The London-based company reported a 14% increase in revenues, which reached £1.9bn from £1.7bn in 2021. Gross profit was up 30% and the business also reported continued market share gains in UKI and other international markets such as France.
Deliveroo states that despite the difficult market conditions, three were the steps the company focused on to achieve profitability progression: optimisation of consumer fees, efficiency gains in the rider network and efficient targeting of marketing spend.
The company also revealed that loss for the year improved by 11% compared with 2021 – an increase of £36m.
It said that excluding a number of costs and one-offs, Deliveroo turned a £6.6m profit in the final six months of the year, compared with an underlying loss of £84.6m in the same period of 2021.
In 2023, Deliveroo anticipates that GTV growth will be low- to mid- single digits, with growth in Q1 expected to be broadly flat and then improving throughout the year. Adjusted Earnings Before Interest, Taxes, Depreciation, and Amortisation expected to continue to improve and to be in the range of £20-50m.
Will Shu, founder and CEO of Deliveroo, said: “I’m particularly pleased that the Company reached adjusted EBITDA 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.
“The macroeconomic outlook for the year ahead remains uncertain, but our record in the past 12 months makes me optimistic about our ability to adapt and continue to deliver on our plans to drive profitable growth. I want to thank the whole Deliveroo team and our consumers, riders and merchants for their ongoing commitment and I look forward to more progress together in 2023.”
