(Alliance News) - Deliveroo PLC on Thursday reported higher revenue and a narrowed loss, "despite challenging macroeconomic conditions" in the first half of the year that prompted the company to lower its guidance for full-year gross transaction value.
Revenue in the six months that ended June 30 was GBP1.02 billion, up 4.9% from GBP972.9 million a year prior. Pretax loss halved to GBP57.6 million from GBP127.1 million a year prior.
Founder & Chief Executive Officer Will Shu said: "We have delivered a strong financial performance despite challenging macroeconomic conditions. This has been achieved alongside continued improvements to our proposition for consumers, riders and merchants."
Deliveroo swung to adjusted earnings before interest, tax, depreciation, and amortisation of GBP39.4 million from an adjusted Ebitda loss of GBP51.6 million a year prior.
Net cash on June 30 was GBP947.8 million, down 16% to GBP1.13 billion the year before.
Deliveroo pays no dividend.
Gross transaction value in the first half was GBP3.51 billion, up 2.7% from GBP3.41 billion a year before. Deliveroo lowered its GTV guidance for the rest of the year to lower single-digit percentage growth from low-to-mid single digits percentage growth. GTV was GBP6.85 billion in 2022.
Adjusted Ebitda guidance was raised to a range of between positive GBP60 million and GBP80 million, up from the previous guidance of positive GBP20 million to GBP50 million, which Deliveroo said reflected the "strong first half performance". Adjusted Ebitda was a loss of GBP45.0 million in 2022.
"Looking ahead, we will continue to adapt to the evolving market conditions and execute against our strategy. We remain excited about the number of opportunities we have to drive further growth in the medium and longer-term, and we have the team and resources to capture these opportunities," Shu added.
Shares in Deliveroo were up 2.9% to 127.10 pence in London on Thursday morning.
By Will Neill, Alliance News reporter
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