Deliveroo has enjoyed “strong growth” in grocery sales and expanded non-food retail partnerships with major brands in the UK and United Arab Emirates (UAE).
The on-demand delivery service said grocery reached 14% of group gross transaction value (GTV) in the first half, with broad-based growth across markets driven by “improved experience and awareness” and “further penetration in mid-sized baskets” between £30 and £60.
Deliveroo said it had focused on driving awareness and increased selection through new partnerships with brands in the UK and UAE, and had launched new propositions in Kuwait and Hong Kong.
The business also flagged that it had introduced a new premium tier in its Plus loyalty programme, noting “encouraging early signs in consumer behaviour” during the period.
In terms of financials, Deliveroo’s adjusted EBITDA surged by 57% to £62m, while it posted £1m in profit and free cash flow of £3m.
In terms of the outlook for the rest of 2024, GTV growth is anticipated to be in the range of 5-9%, with adjusted EBITDA expected to be in the upper half of the previously guided range of £110m and £130m.
Founder and chief executive Will Shu said: “I am pleased with the performance we have achieved this half, which was driven by effective execution of our growth and profitability initiatives. As a result, we reached two major financial milestones: positive free cash flow and positive profit for the period.
“We took important steps to make our cost-volume-profit even more compelling. We innovated our loyalty programme, Plus, with the biggest changes since we launched the programme in 2017 as we continue to make strides towards our ambition to be a Plus-first business by 2026.
“I’m also delighted that we have further improved our Net Promoter Score, a key indicator of consumer satisfaction. I strongly believe that consumer trust is the key to unlocking further growth in this industry and that is why we are relentlessly focused on achieving a flawless delivery experience, along with ensuring fair pricing for our consumers.
“Looking ahead, while there is continued uncertainty in the external environment, I am encouraged by the inflection we are currently seeing in consumer behaviour in many of our markets.
“The Deliveroo platform is more powerful than ever, and we remain responsive to the external environment while continuing to optimise our proposition for consumers, riders and merchants. We operate across attractive verticals, in large, underpenetrated markets, and it’s clear that there is a lot of room for growth in our industry.
“I want to thank the Deliveroo team, whose talent and expertise are invaluable as we continue to capture the many opportunities ahead of us.”
No comments yet