REG - Deliveroo PLC - Deliveroo FY2024 Preliminary Results

DeliverooAnnouncement

13/03/2025 07:15

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RNS Number : 4829A  Deliveroo PLC  13 March 2025

13 March 2025

2024 preliminary results

Deliveroo plc
Good execution driving growth and profitability;
free cashflow positive for the year
Deliveroo plc has today published its preliminary full year results for the year ended 31 December 2024. Full release is available at:
http://www.rns-pdf.londonstockexchange.com/rns/4829A_1-2025-3-13.pdf (http://www.rns-pdf.londonstockexchange.com/rns/4829A_1-2025-3-13.pdf)

Highlights(1)

●    Robust top-line performance driven by continued execution despite
uncertain consumer environment

○   Good year of growth: GTV* up 6% and revenue up 3% in constant
currency* (5% and 2%, respectively, in reported currency), with orders up 2%
marking a return to growth; revenue growth lagged GTV growth as we made
targeted CVP investments while keeping gross profit margin stable.

○   Improving trend in the second half with GTV growth of 7% and revenue
growth of 5% in constant currency.

○   Encouraging performance in both segments; constant currency GTV growth
of 7% in UKI while International returned to growth, up 4% (International
excluding Hong Kong: up 9%).

○   Positive signs of consumer engagement: average order frequency (AOF)
increased across every annual cohort at a group level, and retention improved
through the year, supported by progress on our consumer value proposition
('CVP'), despite continued macroeconomic uncertainty in major markets.

●    Adjusted EBITDA at the top end of guidance and first year of profit
and free cash flow

○   Strong growth in adjusted EBITDA*, up 52% to £130 million (2023: £85
million); adjusted EBITDA margin (as a % of GTV)* increased to 1.7% (2023:
1.2%); with margin levers including a higher contribution from advertising,
delivery network efficiencies and continuing operating cost control.

○   Profit for the year of £3 million, compared to a loss of £(32)
million in 2023.

○   Free cash flow* of £86 million, which includes a £(48) million
outflow for cash exceptionals* and a £77 million inflow of working capital
primarily due to the timing of year end, while excluding £27 million of
interest income.

●    Strong capital position with new share buyback reflecting confidence
in ongoing cash generation

○   Net cash* of £668 million (2023: £679 million); £30 million EBT
share purchase completed and £90m of the £150 million share buyback
completed in FY24.

○   Further return of up to £100 million of structural surplus capital
announced through on-market programme to purchase shares for cancellation;
this brings announced share purchases for cancellation to a total of £550
million since 2023, alongside £105 million EBT purchases since 2022.

○   Disciplined capital allocation with exit from Hong Kong through a sale
of certain assets to foodpanda and a closure of the other assets.

●    Continued improvements in our proposition

○   Further CVP enhancement: improved attractiveness of Plus Gold and
Silver tiers and launched Plus Diamond, driving good frequency uplift and
progress towards our ambition to be a Plus-first business by 2026; continued
progress on value for money, consumer experience and improved selection,
including via radii expansion.

○   New verticals: grocery reached 16% of Group GTV in H2 (H2 2023: 13%)
with strong double-digit growth and further contribution from mid-sized
baskets (£30-£60); launched retail proposition in several markets - focus
remains on awareness and increasing selection.

○   Continued improvement in net promoter score ('NPS'); improved by 4
points year-on-year in 2024.

2025 outlook(2)

●    GTV growth anticipated to be high-single digits percentage growth
(in constant currency).

●    Adjusted EBITDA expected to be in the range of £170-190 million, as
we make targeted investments to capture future growth opportunities.

Medium-term outlook

●    GTV growth: targeting mid-teens percentage growth per annum in
constant currency - (maintained).

●    Profitability: adjusted EBITDA margin (as % of GTV) target of 4%+ in
the medium term, with margin improvement accelerating from 2026 - (revised).

(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 45 for
further details.

(2) Outlook for 2025 and the medium-term is provided on an excluding Hong Kong
basis.

 

Will Shu, Founder and CEO of Deliveroo, said:

"Over the past year, we have been relentlessly focused on making the Deliveroo
experience even better. The robust results we've announced today, with our
first full year profit and positive free cash flow as well as GTV growth
across our verticals, demonstrate that our strategy is working. We continued
to deliver value to consumers by incentivising partners to reduce mark-ups and
by significantly enhancing our loyalty programme. Our dedication to making
every order perfect is having a meaningful impact on consumer satisfaction, as
reflected in our net promoter score.

Whilst the consumer environment remains uncertain, I am confident that we can
continue to deliver growth by focusing on the levers in our control:
supporting our restaurant partners to meet untapped consumer demand around new
occasions, expanding our grocery and retail offering, and continuously
improving our CVP. I want to thank the team for all their hard work and
expertise in 2024 which will help us to capture the many opportunities ahead
of us."

Summary financial information(3,4)
 £ million unless stated                2024     2023     YoY change (reported)  YoY change (constant)

 Orders                                 296.0    290.2    2%                     2%
 GTV per order (£)*                     25.1     24.3     3%                     4%
 GTV*                                   7,433.5  7,062.0  5%                     6%
 Revenue                                2,071.9  2,030.0  2%                     3%
 Revenue take rate (as % of GTV)*       27.9%    28.7%    (90) bps               -
 Gross profit                           766.9    726.4    6%                     -
 Gross profit margin (as % of GTV)*     10.3%    10.3%    0 bps                  -
 Adjusted EBITDA*                       129.6    85.4     52%                    -
 Adjusted EBITDA margin (as % of GTV)*  1.7%     1.2%     50 bps                 -

 Profit/(loss) for the year^            2.9      (31.8)   n.m.                   -
 Free cash flow*^                       85.5     (38.4)   n.m.                   -
 Net cash*^                             667.9    678.8    (1)%                   -

* Alternative performance measure ('APM'), refer to glossary on page 45 for
further details.

^ Continuing and discontinued operations.

(3) The year-on-year changes in tables within this report are based on
unrounded figures.

(4) Including Hong Kong.

To view the full release please click here:
http://www.rns-pdf.londonstockexchange.com/rns/4829A_1-2025-3-13.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/4829A_1-2025-3-13.pdf)

The preliminary full year results release will also be available on the
Deliveroo website at https://corporate.deliveroo.co.uk/
(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
(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

Rohan Chitale and Tim Warrington - investors@deliveroo.co.uk
(mailto:investors@deliveroo.co.uk)

Media Relations

Joe Carberry, VP Policy & Communications - joe.carberry@deliveroo.co.uk
(mailto:joe.carberry@deliveroo.co.uk)

Michelle Lavipour, Head of Corporate Communications -
michelle.lavipour@deliveroo.co.uk (mailto:michelle.lavipour@deliveroo.co.uk)

Brunswick Group: Rosie Oddy and Jono Astle - deliveroo@brunswickgroup.com
(mailto:deliveroo@brunswickgroup.com)

Analyst and investor call

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

Registration details as follows:

Conference call: +44 (0) 33 0551 0200 (quote 'Deliveroo' when prompted by the
operator)

Webcast: https://brrmedia.news/ROO_FY24 (https://brrmedia.news/ROO_FY24)

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

Upcoming events

Q1 2025 trading update: 17 April 2025

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 186,000 best-loved
restaurants, grocers and retail partners, as well as around 135,000 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/ (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.

 

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