Deliveroo sees FY in upper half of forecasts as it swings to profit

UK takeaway delivery company Deliveroo on Thursday said it expected annual earnings to be in the upper half of forecasts after swinging to a profit for the first six months of the year.

It reported profit of £1.3m compared to a loss of £83m last year. The company also turned cash flow positive with £3.2m, up from negative cash flow of £27.7m.

Adjusted core earnings rose 57% to £61.7m.

Gross transaction value – a key metric for the company – rose 6%, while revenue rose 2% on a constant currency basis as Deliveroo saw “encouraging” early signs in consumer behaviour and positive inflection in most markets, with frequency returning to growth and retention improving.

Adjusted core earnings were now tipped to be in the upper half of the previously-guided range of £110m - £130m and free cash flow was expected to be positive for the full year – unchanged from forecasts.

Reporting by Frank Prenesti for Sharecast.com