Deliveroo reached two milestones in its first half as the rapid delivery firm delivered positive profit and free cash flow.
In the six months to June 2024, Deliveroo profit hit £1.3m, compared to a loss of £83m a year ago. Free cash flow rose to £3.2m, up from a negative £27.7m.
Sales remained fairly flat with a 1% increase to £1.02bn, while orders returned to growth of 2% as demand from customers stabilised.
In grocery specifically, the delivery platform reported “strong growth” with further penetration in mid-sized baskets.
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Deliveroo founder and CEO Will Shu said: “I am pleased with the performance we have achieved this half, which was driven by effective execution of our growth and profitability initiatives. As a result, we reached two major financial milestones: positive free cash flow and positive profit for the period.
“I strongly believe that consumer trust is the key to unlocking further growth in this industry and that is why we are relentlessly focussed on achieving a flawless delivery experience, along with ensuring fair pricing for our consumers.”
Looking ahead, Deliveroo expects adjusted EBITDA to be in the upper half of the previously-guided range of £110m to £130m, while free cash flow is expected to be positive for the fill year.
Shu added: “While there is continued uncertainty in the external environment, I am encouraged by the inflection we are currently seeing in consumer behaviour in many of our markets. The Deliveroo platform is more powerful than ever, and we remain responsive to the external environment while continuing to optimise our proposition for consumers, riders and merchants.
“We operate across attractive verticals, in large, underpenetrated markets, and it’s clear that there is a lot of room for growth in our industry. I want to thank the Deliveroo team whose talent and expertise is invaluable as we continue to capture the many opportunities ahead of us.”
