Deliveroo swings to first full year profit as orders jump in UK and Ireland

A surge in takeaway and grocery orders across the UK and Ireland helped Deliveroo turn a profit last year.

The food delivery firm informed markets this morning that its gross merchandise value (GTV) rose by five per cent to £7.4bn for the year ending December 31, up from £7bn the previous year, as reported by City AM.

The company reported an annual profit of £2.9m, a significant improvement from a loss of £31.8m the year before. Revenue increased two per cent year on year, from £2.03bn to £2.07bn, while gross profit climbed six per cent to £767m.

Deliveroo also saw a two per cent growth in its customer base during the year, with average order frequency increasing across all groups and improved retention throughout the year.

"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," said Will Shu, Founder and CEO of Deliveroo.

"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 CVP [consumer value proposition]."

The company aims for high-single GTV growth in 2025 and expects adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) to be in the range of £170m-190m.

In the medium term, it will target mid-teens percentage growth per year in GTV, and an EBITDA margin of four per cent.

Deliveroo also announced its exit from the Hong Kong market on March 10, which led a London broker to label the brand "underappreciated".

"Both earnings before interest, tax, depreciation and amortisation (EBITDA) and group GTV growth [revenue] are set to benefit from this market exit," Panmure Liberum analysts said.