Deliveroo narrows losses in 'resilient' year

In the year to the end of December 2023, losses narrowed to £31.8m from £294.1m the year before, with revenue up 3% at £2.03bn. Gross transaction value was also 3% higher, while GTV per order rose to £24.30 from £22.90.

Deliveroo said this was "a resilient performance in the context of the macroeconomic backdrop".

The company said that throughout the first half across many of its markets, food price inflation was consistently high, outpacing wage inflation. The associated cost-of-living crisis put "significant" pressure on consumer confidence and spending power.

However, during the second half, food price inflation began to ease and the gap between food price inflation and wage inflation started to narrow. GTV growth improved from 1% in the first half to 5% in the second, both at constant currency.

The UK and Ireland performed well, with GTV growing 7% at constant currency, in line with overall market growth, while the international segment lagged, with GTV down 3%.

However, trends improved steadily through the year and the international business returned to growth in the fourth quarter, with particularly strong performances in Italy and UAE, alongside improvements across most other markets.

For 2024, the company expects GTV growth at constant currency of between 5% and 9%, with growth in the first quarter similar to the final quarter of 2023 and an improvement through the year. Adjusted EBITDA is seen at between £110m and £130m and Deliveroo expects to be cash flow positive.

Founder and chief executive Will Shu said: "2023 was a good year for Deliveroo and I am proud of what we have delivered financially, operationally and for our consumers. Our focus on service and value for money continues to build consumer trust, which are fundamental to unlocking future growth in this industry.

"Alongside this, our restaurant and grocery businesses are performing well, we launched our retail offering, Deliveroo Shopping, and we are scaling our advertising business. Building on the strong progress we made in 2023, I'm excited about the further opportunities ahead. We have clear strategic priorities and initiatives in place to achieve our medium term targets, and I am confident in our ability to deliver continued profitable growth."