Deliveroo has reported its first-ever profit, following a £32 million loss last year.
In its most recent full-year results, the British food delivery company announced a 52% increase in adjusted EBITDA to £130 million, alongside a rise in average order frequency across all annual cohorts at the group level.
The company also reported a £3 million profit for the year, with a 5% revenue growth in constant currency.
Deliveroo noted 'positive signs of consumer engagement' despite facing 'continued macroeconomic uncertainty in major markets.'
Earlier this week, Deliveroo announced its decision to exit its Hong Kong operations by selling certain assets to its Singaporean competitor Foodpanda and closing others. The company concluded that achieving a sustainable and profitable scale in the region would require significant financial investment.
Deliveroo also intends to expand its selection and introduce its growing retail offering in 'several markets' following data showing its grocery division accounted for 16% of the group's gross transaction value (GTV) in the second half of 2024.
During the period, Deliveroo secured exclusive contracts and extensions with several UK brands, including Dishoom, Nando’s, Joe & the Juice, Wingstop, Pho, and Bleecker Burger.
Founded in 2013 by William Shu and Greg Orlowski, the British food delivery platform has faced challenges in capitalising on 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 £8.8 billion, marking the largest London stock market debut since Glencore’s in 2011. However, it ultimately priced its shares at the lower end of the previously suggested range, valuing the company at £7.6 billion.
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.”
