13th Mar 2025 09:29
(Alliance News) - Deliveroo PLC on Thursday said it would be returning GBP100 million of further excess capital to shareholders as it noted "encouraging signs" in consumer activity.
The London-based food delivery company swung to a pretax profit of GBP12.2 million in 2024, from a loss of GBP10.9 million in 2023, as revenue rose 2.1% to GBP2.07 billion from GBP2.03 billion.
Orders were up 2.0%, rising to 296.0 million from 290.2 million, with gross transaction value advancing 5.3% to GBP7.42 billion from GBP7.06 billion.
Deliveroo said its increased orders reflected "encouraging signs of stabilisation in consumer behaviour".
Its shares fell 8.0% to 114.60 pence on Thursday morning in London.
Gross transaction value per order improved 3.3% to GBP25.1 from GBP24.3.
Deliveroo said it intends to return up to GBP100 million of structurally surplus capital to shareholders, which it said represents its confidence in ongoing cash generation.
It reported free cash flow for 2024 of GBP85.5 million, swinging from negative free cash flow of GBP38.4 million the year before.
It expects the buyback programme to begin "shortly", once its GBP150 million buyback scheme announced at its 2024 interim results completes.
Looking at 2025, it anticipates high single-digit percentage growth in gross transaction value in constant currency.
Adjusted earnings before interest, tax, depreciation and amortisation is expected to be between GBP170 million and GBP190 million. In 2024 adjusted Ebitda grew 52% to GBP129.6 million from GBP85.4 million.
However, Deliveroo delayed the delivery of its adjusted Ebitda margin target of more than 4%, pushing it back to the "medium-term" from "by 2026" as detailed at its capital markets event in November 2023. It said the "improvement in the consumer backdrop has taken longer than [it] expected."
Founder & Chief Executive Will Shu commented: "Whilst the consumer environment remains uncertain, I am confident that we can continue to deliver growth by focusing on the levers in our control: supporting our restaurant partners to meet untapped consumer demand around new occasions, expanding our grocery and retail offering, and continuously improving our [consumer value proposition]."
By Christopher Ward, Alliance News reporter
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