Deliveroo: Earnings shoot up ahead of Doordash acquisition
Deliveroo has announced a boost to its earnings driven by a ‘more resilient than expected’ consumer, although profit has taken a hit ahead of its acquisition by American delivery giant Doordash.
Revenue rose nine per cent in the six months ended June 30, with orders up eight per cent, Deliveroo told markets this morning.
Order frequency amongst customers increased year on year, Deliveroo said, with retention also improving year on year,
Earnings before interest, tax, depreciation and amortisation (EBITDA) rose 46 per cent to £96m, from £66m last year.
But the company posted a loss for the six months of £19.2m after recording profit of £1.3m last year, putting the figure down to “higher exceptional items relating to costs associated with the Doordash [deal]”.
Deliveroo prepares for Doordash buyout
In May, the board of Deliveroo announced a £2.9bn takeover by the American giant.
It marks yet another exit from London’s Stock Exchange, which has seen an exodus of companies this year.
CEO Will Shu said he was “excited for what the partnership with DoorDash can bring… they will be an excellent partner for everyone at the company, as well as for our consumers, merchant partners and riders.”
He added that the first half of this year has been “very positive”.
“Our long term focus on improving the [customer value proposition] is paying off. Consumer engagement is encouraging, with order frequency and retention continuing to improve across all cohorts.
“Today, both growth and profitability are accelerating. We are delivering on our mission to change the way people shop and eat and to bring the neighbourhood to people’s doors. I’m proud of where we are and all that we have achieved. We helped to build an entire sector and have redefined it multiple times over,” Shu said.
Deliveroo expects to report mid-teens annual percentage growth in sales in the medium term.