Deliveroo expects lower 2022 growth, but sees mid-term path to profit
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1 min read . Updated: 17 Mar 2022, 08:57 PM IST - The company is targeting gross transaction value growth of between 20% and 25% in the medium term
Deliveroo PLC said Thursday that it expects to reach an adjusted Ebitda breakeven in the medium term despite forecasting a weaker 2022 due to market uncertainties.
The U.K. food-delivery company--which started trading on the London Stock Exchange on April 7--said that it is targeting to adjusted earnings before interest, taxes, depreciation and amortization--which strips out exceptional and other one-off items--breakeven in the second half of 2023 or first half of 2024, which would be “the next key milestone on the path to achieving its longer term profit ambitions."
The company is also targeting gross transaction value growth of between 20% and 25% in the medium term.
However, Deliveroo said it expects 2022 gross transaction value growth of between 15% and 25% due to current uncertainties across European markets, such as inflationary pressures, post-pandemic consumer behavior and the conflict in Ukraine. It also expects adjusted earnings before interest, taxes, depreciation and amortization to be a loss in the range of 1.5% and 1.8%.
The company reported a widened 2021 pretax loss for the period ended Dec. 31 of 298.2 million pounds ($392.1 million), compared with a loss of GBP212.6 million a year earlier.
Revenue rose to GBP1.82 billion from GBP1.16 billion driven by the increase in gross transaction value, which was GBP6.63 billion from GBP3.98 billion.
The company hasn’t declared a dividend as it focuses on investing in its growth and it doesn’t expect to pay any dividends in the foreseeable future.
Shares at 0839 GMT were up 8.95 pence, or 7.7%, at 125.5 pence.
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This story has been published from a wire agency feed without modifications to the text
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