Deliveroo, the leading food delivery company in the UK, has announced a swing to profit for the first half of the year, resulting in an increase in its preferred adjusted EBITDA guidance. In addition, the company plans to return an extra £250 million of surplus capital to its shareholders.
For the half year ended June 30, Deliveroo reported adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of £39.4 million. This is a significant improvement compared to the loss of £51.6 million during the same period last year. The adjusted EBITDA metric excludes exceptional and other one-off items.
As a result of its strong performance, Deliveroo has raised its adjusted EBITDA guidance for the year to a range between £60 million and £80 million, up from the previous range of £20 million to £50 million. In 2022, the company reported a loss of £70.5 million.
The pretax loss for the period amounted to £57.6 million, compared to a loss of £127.1 million in the previous year. On the revenue front, Deliveroo saw an increase to £1.02 billion, surpassing both the previous year’s figure of £972.9 million and the consensus forecast of £1.03 billion based on three analysts’ estimates.
Deliveroo’s gross transaction value (GTV), which represents the total value of transactions processed on its platform, experienced a 3% growth, reaching £3.51 billion.
Looking ahead, Deliveroo has revised its GTV growth guidance for the year to a lower single-digit percentage, compared to previous expectations for low-to-mid single-digit growth.
Overall, these positive financial results reflect Deliveroo’s strong performance in the food delivery industry and its ability to adapt and thrive in a competitive market.
