Deliveroo has taken a step towards profitability, having broken even on EBITDA, despite dwindling order numbers across its UK and international businesses.
In a trading update, Deliveroo said that full-year profitability for 2022 as a percentage of gross transaction value (GTV) would be ahead of expectations at -1% for all operations, ahead of the previous -1.2% to -1.5%.
The food delivery business said it expected adjusted EBITDA for the second half of 2022 to be breakeven, a “significant” improvement on the -3.2% reported in the first half of the year.
In the fourth quarter, Deliveroo reported a 9% increase in GTV to £1.7bn and a 2% slide in orders to 75.1 million. However, the value per order jumped 11% to £23.9.
In the UK, GTV jumped 9% to more than £1bn, order numbers were flat at 40.6 million and order value rose 8%.
International GTV rose 9% to £765m, while order numbers dropped 5% to 34.5 million.
Will Shu, founder and chief executive, said: “I am proud of the team delivering significant improvements in profitability whilst also still delivering growth in a difficult macro-economic environment.
“I am particularly pleased that we have done so while improving our consumer value proposition, meaningfully increasing the selection of restaurants and grocers available on the platform. As always, we continue to be focused on strengthening our offer for each side of our marketplace through a hyperlocal lens.
“Amidst an uncertain outlook for 2023, we remain confident in our ability to adapt financially and to make continued progress on our path to profitability.”
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