Deliveroo ends 2023 on a high, expects positive cash flow in 2024
Strong demand for takeaways and lower costs helped Deliveroo record positive earnings before interest, taxes, depreciation, and amortisation (EBITDA) last year.
The company reported adjusted EBITDA of £85m, up from a loss of £45m in 2022. Its overall adjusted EBITDA margin increased to 1.2 per cent from -0.7 per cent.
Sales increased three per cent, and the gross transaction value per order rose six per cent to £24.3.
Overall, the company’s loss for the period was £32m, compared to £262m last year. It reported a free cash outflow of £38m, compared to £243m last year.
Deliveroo ended the year with net cash of £679m following a £309m capital return in 2023.
The company said it will continue to look for opportunities to drive growth and efficiencies, including reducing order wait time and “smart order stacking” as well as automation to “drive operating leverage as we scale.”
In 2024, the group said it would like to see order value growth of five per cent to nine per cent with adjusted EBITDA in the range of £110m to £130m. It also guided for free cash flow “to be positive for the full year 2024.”
Will Shu, founder and chief of Deliveroo said: “2023 was a good year for Deliveroo and I am proud of what we have delivered financially, operationally and for our consumers. Our focus on service and value for money continues to build consumer trust, which are fundamental to unlocking future growth in this industry.
He added: “Alongside this, our restaurant and grocery businesses are performing well, we launched our retail offering, Deliveroo Shopping, and we are scaling our advertising business. Building on the strong progress we made in 2023, I’m excited about the further opportunities ahead. We have clear strategic priorities and initiatives in place to achieve our medium term targets, and I am confident in our ability to deliver continued profitable growth.”