Deliveroo narrowed its losses by £262m to £32m in 2023, beating expectations, as it revealed its grocery business had hit a £1bn a year run rate in the fourth quarter.
On an adjusted EBITDA level, the delivery app made a profit of £85m, compared to a £45m loss in 2023, as sales across the year edged up 3% to £2.03bn.
The app said it had seen “particularly strong growth in mid-sized basket orders” in grocery.
Deliveroo founder and CEO 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.”
Subscribe to Grocery Gazette for free
Sign up here to get the latest grocery and food news each morning
“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.”
In the year ahead, Deliveroo expects gross transaction values to grow by 5% to 9% and believes that adjusted EBITDA will hit £110m to 130m.
Deliveroo’s latest results follow a bout of industrial action by its riders, who last month went on strike during Valentine’s Day in a dispute over pay and working conditions.
