Deliveroo narrowed its losses by £262m to £32m in 2023, a significant improvement from the £294m loss seen in 2022 as the average amount spent on orders increased amid higher grocery price inflation.
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 business benefitted as gross transaction value (GTV) per order rose 6% from £22.90 to £24.30 caused by price inflation and optimising consumer fees last year.
The firm experienced a slightly better performance across the UK and Ireland where the number of orders increased by 1%, and GTV rose 8% year-on-year.
Deliveroo added that it had seen “particularly strong growth in mid-sized basket orders” in grocery.
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The group axed 9% of its total workforce last year in a bid to cut costs however staff costs rose 3% compared with 2022.
But salary inflation increased the wages of remaining employees, the business confirmed.
Chief executive Will Shu said Deliveroo had made progress towards profitability, while giving customers faster and more reliable delivery.
He said in the year ahead, the business expects GTVs to grow by 5% to 9% and core earnings to rise this year to between £110m to £130m.
Shu 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.”
Last week Deliveroo said it had expanded its partnership with Screwfix to a total of 15 locations since its launch last year.
The delivery firm unveiled its exclusive tie-up with the home improvement retailer back in November as part of its Deliveroo Shopping feature, which allows users to shop from a range of non-food categories.
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