AUS
NZ
UK
CA
USA
FRA
GER
ESP
ITA
NLD
PRT
SWE
GRC
IND
POL
BRA
ZAF
RUS
CHN
UAE
Deliveroo (LON:ROO) has reported its first-ever half-year profit, marking a financial milestone for the UK-based food delivery service. The company recorded a profit of £1 million for the first six months of 2024, a turnaround from the £83 million loss reported in the same period last year. This achievement is attributed to the company's increased focus on grocery and retail deliveries and early indications of a rebound in consumer spending.
Revenue Growth and Consumer Behavior
The company noted a 6% global increase in sales and delivery fees, with a 7% rise in the UK and Ireland. There were positive signs in consumer behavior, with returning customers contributing to this growth. Deliveroo highlighted a notable uptick in the number of purchases and improved performance across its markets.
Expansion into Grocery and Retail
Deliveroo's push into grocery and retail sectors has been particularly successful. The company expanded its partnerships with major UK and UAE brands, including Holland & Barrett, B&Q, and Toys R Us. This strategic move included adding new categories such as toys, flowers, and homeware, driven by consumer demand.
Stock Market Reaction
The positive earnings report led to an 8.6% increase in Deliveroo’s share price, reaching 138.8p. The company's improved financial performance and strategic expansion into new delivery areas have garnered investor interest and confidence.
Company Strategy and Market Challenges
Despite ongoing external uncertainties, Deliveroo's CEO, Will Shu, expressed optimism about the company's current market position. The company is focused on leveraging its platform's capabilities to optimize operations for consumers, riders, and merchants. The shift towards grocery and retail delivery aims to counteract the challenges faced due to reduced spending and increased inflation. Deliveroo has adjusted its workforce and operations to adapt to changing market conditions and consumer preferences.
