Deliveroo reported its FY22 preliminary results on Thursday, which saw the group ‘deliver’ on its path to profitability, achieving positive EBITDA in the second half of the year, leaving it on course for improved earnings in 2023.
Despite ‘challenging market conditions’ the online food delivery firm reported revenue of £1.97bn, up 14% on 2021, with a gross transaction value of £6.85bn, up 9%. Additionally Deliveroo posted a 30% jump in gross profit to £643.2m. Its adjusted EBITDA narrowed, although came in at a loss of £45m.
The group stated that its results underpinned strong execution on its operational initiatives such as the optimisation of consumer fees, efficiency gains in the rider network and efficient targeting of marketing spend.
For 2023, Deliveroo expects GTV growth to be in the low to mid signle digits, with growth in Q1 expected to be broadly flat. Meanwhile, adjusted EBITDA is expected to continue to improve and be in the range of £20m to £50m, weighted to the second half of the year.
“I’m proud of our performance in the past 12 months. Our team has delivered in difficult market conditions, with continued growth and share gains in our key markets. I’m particularly pleased that the Company reached adjusted EBITDA profitability in the second half of last year.Will Shu, Founder and CEO of Deliveroo
Currently, there is little to argue in either direction for Deliveroo’s Twitter mentions. Its mentions have been quite volatile, although through qualitative analysis, much of its recent tweets have been complaints about the extortionate prices being charged (especially the high price of eggs.)
Given the current cost-of-living crisis, Deliveroo faces several issues going into 2023, and its focus on prices will be essential if it wishes to hold onto its customer base.