Interim Financial Report 2024

Deliveroo PLC

08 August 2024

 

08 August 2024

Interim financial report 2024

Deliveroo plc

Strong execution with positive free cash flow in H1;
additional £150 million return of structural surplus capital

Deliveroo plc has today published its interim results for the period ended 30 June 2024. Full release is available at: http://www.rns-pdf.londonstockexchange.com/rns/6346Z_1-2024-8-7.pdf

Highlights¹                                                

●    Good top-line performance driven by execution on strategy in a stabilising consumer environment

○   Growth across key metrics with GTV* up 6% and revenue up 2% in constant currency* (5% and 1%, respectively, in reported currency), and orders returning to growth of 2%, all delivered alongside a stable gross profit margin.

○   Good GTV growth in both UKI and International; constant currency GTV growth of 7% in UKI and 5% in International, where orders returned to growth driven by improvement in France and continued strength in UAE and Italy.

○   Encouraging early signs in consumer behaviour: positive inflection in most markets, with frequency returning to growth and retention improving, supported by improvements in our consumer value proposition ('CVP').

●    Delivering for our consumers through investments to further enhance our CVP

○   Innovation in Plus loyalty programme: in line with our ambition to be a Plus-first business by 2026, we introduced a new premium tier, Plus Diamond, and launched it in the UK, and we made improvements to Plus Gold and Plus Silver in UKI and France.

○   Strong growth in grocery: reached 14% of Group GTV in H1; broad-based growth across markets driven by improved experience and awareness, and further penetration in mid-sized baskets (£30-£60).

○   Retail rollout: focused on driving awareness and increased selection through new partnerships and expanded site rollouts with major brands in the UK and UAE, showing positive early progress; launched proposition in Kuwait and Hong Kong.

○   Continued improvement in net promoter score ('NPS') with June 2024 the highest level since mid-2021.

●    Key financial milestones reached with positive profit for the period and positive free cash flow*

○   Strong growth in adjusted EBITDA*, up 57% to £62 million (H1 2023: £39 million); adjusted EBITDA margin (as a % of GTV)* increased to 1.7% (H1 2023: 1.1%); profit improvement drivers included higher advertising contribution, efficiencies in the delivery network and overhead efficiencies.

○   Profit for the period of £1 million, compared to a loss of £(83) million in H1 2023.

○   Free cash flow of £3 million, which includes a £(43) million outflow for cash exceptionals*.

●    New £150 million share buyback reflects financial progress in the last year and confidence in the outlook

○   Net cash* of £662 million (H2 2023: £679 million); £30 million EBT share purchase completed in H1 2024.

○   Additional £150 million return of structural surplus capital through on-market programme to purchase shares for cancellation. This brings announced share purchases for cancellation to a total of £450 million, alongside £105 million EBT purchases since 2022 to offset dilution from employee share awards.

2024 outlook

●    GTV growth (in constant currency) anticipated to be in the range of 5-9% (unchanged).

●    Adjusted EBITDA expected to be in the upper half of the previously-guided range of £110-130 million (updated).

●    Free cash flow expected to be positive for the full year 2024 (unchanged).

This announcement includes inside information as defined in Article 7 of the Market Abuse Regulation No. 596/2014 and is being released on behalf of Deliveroo PLC by Catherine Sukmonowski, Company Secretary.

¹ In this section, all growth rates are year-on-year and in reported currency unless otherwise stated.

* Alternative performance measure ('APM'), refer to glossary on page 42 for further details.

Will Shu, Founder and CEO of Deliveroo, 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 CVP 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 focussed 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 is invaluable as we continue to capture the many opportunities ahead of us."

Summary financial information²

£ million unless stated	H1 2024	H1 2023	YoY change (reported)	YoY change (constant)
Orders	147.4	145.2	2%	2%
GTV per order (£)*	25.0	24.2	4%	5%
GTV*	3,689.7	3,506.8	5%	6%
Revenue	1,028.2	1,020.3	1%	2%
Revenue take rate (as % of GTV)*	27.9%	29.1%	(120) bps	-
Gross profit	382.5	365.1	5%	-
Gross profit margin (as % of GTV)*	10.4%	10.4%	0 bps	-
Adjusted EBITDA*	61.7	39.4	57%	-
Adjusted EBITDA margin (as % of GTV)*	1.7%	1.1%	60 bps	-
Profit/(loss) for the period^	1.3	(82.9)	n/a	-
Free cash flow*^	3.2	(27.7)	n/a	-
Net cash*^	662.1	947.8	(30)%	-

* Alternative performance measure ('APM'), refer to glossary on page 42 for further details.
^ Continuing and discontinued operations.
² The year-on-year changes in tables within this report are based on unrounded figures.

To view the full release please click here: http://www.rns-pdf.londonstockexchange.com/rns/6346Z_1-2024-8-7.pdf

The interim financial report will also be available on the Deliveroo website at https://corporate.deliveroo.co.uk/ and the results have been submitted in full unedited text to the Financial Conduct Authority's National Storage Mechanism and will shortly be available for inspection at https://data.fca.org.uk/#/nsm/nationalstoragemechanism.

This information contains regulated information as per 6.3.7R of the Disclosure and Transparency Rules of the Financial Conduct Authority

Contact information

Investor Relations

David Hancock, VP Finance, Strategy & IR - [e-mail]

Tim Warrington, Investor Relations Director
Rohan Chitale, Investor Relations Director

Media Relations

Michelle Lavipour, Head of Corporate Communications - [e-mail]  

Brunswick Group: Rosie Oddy and Jono Astle - [e-mail] 

Analyst and investor call

A conference call and webcast with Q&A for analysts and investors will be held today at 09:00 BST / 10:00 CEST.

Registration details as follows:

Conference call: [phone] (quote 'Deliveroo HY24' when prompted by the operator)

Webcast: https://brrmedia.news/ROO_HY24

The webcast will also be available to view at https://corporate.deliveroo.co.uk/. A replay will be made available later.

Upcoming events

Q3 2024 trading update: 17 October 2024

About Deliveroo plc ('Deliveroo' or 'the Company' or 'we')

Deliveroo is an award-winning delivery service founded in 2013 by William Shu and Greg Orlowski. Deliveroo works with approximately 182,000 best-loved restaurants, grocers and retail partners, as well as around 140,000 riders to provide the best on-demand delivery experience in the world. Deliveroo is headquartered in London, with offices around the globe. Deliveroo operates across 10 markets, including Belgium, France, Hong Kong, Italy, Ireland, Kuwait, Qatar, Singapore, United Arab Emirates and the United Kingdom.

Further information regarding Deliveroo is available on the Company's website at https://corporate.deliveroo.co.uk/.

Disclaimer

This announcement may include forward-looking statements, which are based on current expectations and projections about future events. These statements may include, without limitation, any statements preceded by, followed by or including words such as "target", "believe", "expect", "aim", "intend", "may", "anticipate", "estimate", "plan", "project", "will", "can have", "likely", "should", "would", "could" and any other words and terms of similar meaning or the negative thereof. These forward-looking statements are subject to risks, uncertainties and assumptions about the Company and its subsidiaries and its investments, including, among other things, the development of its business, trends in its operating environment, and future capital expenditures and acquisitions. The forward-looking statements in this announcement speak only as at the date of this announcement. These statements reflect the beliefs of the Directors, (including based on their expectations arising from pursuit of the Group's strategy) as well as assumptions made by the Directors and information currently available to the Company. Further, certain forward-looking statements are based upon assumptions of future events which may not prove to be accurate and none of the Company nor any member of the Group, nor any of such person's affiliates or their respective directors, officers, employees, agents and/or advisors, nor any other person(s) accepts any responsibility for the accuracy or fairness of the opinions expressed in this announcement or the underlying assumptions. Actual events or conditions are unlikely to be consistent with, and may differ significantly from, those assumed. In light of these risks, uncertainties and assumptions, the events in the forward-looking statements may not occur. No representation or warranty is made that any forward-looking statement will come to pass. No one undertakes to update, supplement, amend or revise any forward-looking statements. You are therefore cautioned not to place any undue reliance on forward-looking statements.

 

END