14 March 2024
2023 preliminary
results
Deliveroo plc
Strong operational progress driving profitable
growth
Highlights1
● Good financial performance, with adjusted
EBITDA ahead of guidance
○ Resilient year of growth given macroeconomic
conditions with gross profit up 13% and revenue and GTV* up
3% (2% and 3%, respectively at constant currency*).
○ Growth trend improved in the second
half with H2 GTV up 5% year-on-year and orders recovering
through the year to be flat year-on-year in Q4.
○ Significant progress on profitability
with adjusted EBITDA* of £85 million (2022: £(45) million);
adjusted EBITDA margin (as a % of GTV)* increased to 1.2% (2022:
(0.7)%).
○ Profit improvement levers included:
efficiencies in the delivery network, optimisation of marketing
spend, overheads savings and a higher advertising
contribution.
○ Loss for the period reduced by £262
million to £(32) million.
● Further progress towards sustainable cash
generation
○ Free cash outflow reduced to £(38)
million (2022: £(243) million), which included £(20) million cash
exceptionals and excluded £32 million interest income.
○ Net cash* of £679 million (2022: £1,000
million); £309 million total return of capital completed in
2023, c.30% of net cash at the start of the year.
● Delivering for our consumers focusing on
service and value for money
○ Continued investment and innovation in
consumer value proposition (CVP), with enhanced selection
and in-app experience, premium delivery, top-up grocery orders and
launch of retail proposition.
○ CVP initiatives driving clear benefits
with higher NPS, lower average mark-ups by restaurants on the
platform, improvement in key service metrics and grocery reaching
an annualised GTV run-rate of £1.0 billion in Q4, with particularly
strong growth in mid-sized basket orders.
● Strategic priorities and targets outlined at
recent Capital Markets Event
○ Multiple opportunities for growth
including further enhancing CVP (selection, price/value, Deliveroo
Plus and delivery experience) and new verticals and use cases
(retail and mid-sized grocery baskets).
○ Strong levers for profitability and cash
flow including reducing rider wait time and smarter order
stacking, increased marketing efficiency, and greater automation to
drive operating leverage as we scale.
○ GTV growth: targeting mid-teens
percentage growth per annum in constant currency in the medium
term.
○ Profitability: adjusted EBITDA margin
(as % of GTV) target of 4%+ by 2026.
2024 outlook
● GTV growth (in constant currency)
anticipated to be in the range of 5-9%; Q1 growth expected to be
similar to Q4 2023, with an improvement in growth through the year
as we continue to deliver on our plans.
● Adjusted EBITDA expected to be in the
range of £110-130 million.
● Free cash flow expected to be positive
for the full year 2024.
Will Shu, Founder and CEO of Deliveroo,
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."
1 In this section, all growth rates are year-on-year and in
reported currency unless otherwise stated, and all figures exclude
results from Australia and the Netherlands, where operations ended
on 16 November 2022 and 30 November 2022 respectively, and Spain,
where operations ended on 29 November 2021 (all three markets are
treated as discontinued operations).
* Alternative performance measure
('APM'), refer to glossary on page 48 for further
details
Summary financial information
£
million unless stated
|
2023
|
2022
|
Change
|
|
|
|
|
Orders
|
290.2
|
299.2
|
(3)%
|
GTV per order (£)*
|
24.3
|
22.9
|
6%
|
GTV*
|
7,062.0
|
6,848.1
|
3%
|
Revenue
|
2,030.0
|
1,974.7
|
3%
|
Revenue take rate (as % of GTV)*
|
28.7%
|
28.8%
|
(10) bps
|
Gross profit
|
726.4
|
643.2
|
13%
|
Gross profit margin (as % of GTV)*
|
10.3%
|
9.4%
|
90 bps
|
Adjusted EBITDA*
|
85.4
|
(45.0)
|
n.m.
|
Adjusted EBITDA margin (as % of GTV)*
|
1.2%
|
(0.7)%
|
190 bps
|
|
|
|
|
Loss for the period^
|
(31.8)
|
(294.1)
|
(89)%
|
Free cash flow*^
|
(38.4)
|
(243.1)
|
(84)%
|
Net
cash*^
|
678.8
|
999.6
|
(32)%
|
|
|
|
|
* Alternative performance measure
('APM'), refer to glossary on page 48 for further details
^ Continuing and discontinued operations
Change in constant currency was 3% for GTV, 6% for GTV per order
and 2% for revenue
To view the full release please click here:
http://www.rns-pdf.londonstockexchange.com/rns/7840G_1-2024-3-13.pdf
The preliminary full year results
statement 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 -
investors@deliveroo.co.uk
Tim Warrington, Investor Relations Director
Rohan Chitale, Investor Relations Director
Media Relations
Joe Carberry, VP Policy & Communications -
joe.carberry@deliveroo.co.uk
Brunswick Group: Rosie Oddy and Jono Astle -
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 FY23' when prompted by the operator)
Webcast: https://brrmedia.news/ROO_FY23
The webcast will also be available to view at
https://corporate.deliveroo.co.uk/.
A replay will be made available later.
Upcoming events
Q1 2024 trading update: 18 April
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 183,000 best-loved restaurants, grocery and
retail partners, as well as around 135,000 riders to provide the
best food 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.