Deliveroo orders decreased but profits anticipations expanded

August 14, 2023: On Thursday, British meal delivery company Deliveroo orders decreased but profits anticipations expanded.

The company expected to adjust earnings before interest, tax, depreciation, and amortization (EBITDA) of 60-80 million pounds ($76-$102 million) for the year, up from its previous 20-50 million forecast.

Deliveroo reported a better-than-anticipated EBITDA of 39 million pounds in the first half, as its margin enhanced to 1.1% from 0.2% in the second half of 2022 and a negative margin of 1.5% a year ago.

The company, which had 948 million pounds in net cash at the end of the period, said it would produce 250 million pounds of capital for shareholders.

The total gross transaction value of its orders increased by 3%, as restaurant and grocery prices inflation offset the drop in order numbers.

Founder and chief executive Will Shu stated that the company delivered a solid financial performance despite difficult market conditions.

“Over the last 18 months, Deliveroo has reached adjusted EBITDA profitability ahead of plan, and we are moving towards our goal of generating consistent positive unrestricted cash flow,” he said.

Shares in Deliveroo are awake 44% so far this year.