Takeaway delivery provider Deliveroo cut losses by almost 90% in 2023 after cutting operating costs, but annual profits remain elusive.
The London-listed firm posted a loss of £31.8m in its 2023 earnings, down significantly from the £294.1m loss the year prior.
Company revenue grew by 3% to £2bn. Administrative expenses and other operating expenses dropped by around 13%.
While Deliveroo remains unprofitable, it did report its first annual profit of £85.4m using adjusted EBITDA metrics, up from a £45m loss the year prior.
Deliveroo said that in the first half of 2023, inflation and the increasing cost of living put “significant pressure on consumer confidence and spending power”.
However, the second half of the year saw food inflation start to ease, offering “signs of stabilisation in customer behaviour”.
The firm warned that the consumer spending environment remained “fragile”. Despite this, Deliveroo said positive growth in its premium customer base and additional focus on its grocery delivery service supported the improved financial results.
“Our focus on service and value for money continues to build consumer trust, which is fundamental to unlocking future growth in this industry,” said CEO Will Shu.
“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.”
Deliveroo said it expects free cash flow to be positive for 2024.
In January, Delivery Hero, a Berlin-based company and Deliveroo shareholder sold its 4.5% stake in the company, worth around £83m.