14 March 2024
2023 preliminary results
Deliveroo plc
Strong operational progress driving profitable growth
Deliveroo plc has today published its preliminary full year results for the year ended 31 December 2023. Full release is available at: http://www.rns-pdf.londonstockexchange.com/rns/7840G_1-2024-3-13.pdf
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 |
| | | |
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| Loss for the period^ | (31.8) | (294.1) | (89)% |
| Free cash flow*^ | (38.4) | (243.1) | (84)% |
| Net cash*^ | 678.8 | 999.6 | (32)% |
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* 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.
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