Deliveroo reports strong performance in first half of year

UK-based online food delivery company, Deliveroo has reported its results for H1 2021, showing growth across the board.

Financial overview
• Gross Transaction Value (GTV) up 102% to £3,385.8m; GTV growth was 131% in Q1 and 81% in Q2 2021, showing continued strength despite reopening effects and an increasingly tough comparison base
• UK & Ireland GTV up 110% in H1 2021, with broad-based geographic momentum and no material impact from UK reopening milestones during Q2 2021
• International GTV up 95% in H1 2021, reflecting differing patterns of reopening in H1 2021 and varying impact of lockdown restrictions in the comparison base
• Revenues up 82% to £922.5m, primarily due to increase in GTV, driven by an increase in monthly active consumers compared to H1 2020
• Gross Profit up 75% to £263.9m; gross profit margin (as % of GTV) of 7.8%, down from 8.8% in H1 2020 due to accelerated investments to support future growth, including consumer acquisition and retention, and differentiated restaurant and grocery selection
• Adjusted EBITDA was a loss of £27m compared to £30.3m in H1 2020, as higher gross profit was largely offset by increased investments to support future growth
• Statutory loss before tax improved to £104.8m in H1 2021 compared to £128.4m in H1 2020
• Cash and cash equivalents of £1,626.7m at 30 June 2021 included £1,012.9m net proceeds from the IPO in March 2021.

Operational & strategic highlights
• Growth materially ahead of expectations in H1 2021; consumer engagement post-reopening has been encouraging, with orders and average order value (AOV) proving resilient despite restrictions easing
• Deliveroo now has the most food merchants in the UK of all delivery platforms after adding further selection; UK expansion is ahead of plan with 72% population coverage at end-June vs initial target of 67% by year-end
• Further traction in on-demand grocery (ODG) supported by roll-out of offering with leading partners; ODG has attractive standalone unit economics and significant synergies with restaurants business
• Strong rider satisfaction with 85% of riders globally saying they are satisfied or very satisfied working with Deliveroo; rider attraction and retention rates remain high despite rising job vacancies across economies
• Continued investment in long-term differentiation of the consumer value proposition and in growing the monthly active consumer base, given clear evidence of a positive structural shift in consumer behaviour, and strong capital position following the IPO in March 2021
• Proposal to end operations in Spain announced on 30 July 2021, as achieving a top-tier market position would require a disproportionate level of investment with highly uncertain long-term potential returns
• Launch of 'Full Life' campaign, which builds on Deliveroo's support for the NHS with a new commitment to work with restaurant and grocery partners to deliver one million meals to communities in need by early next year

Will Shu, Founder and CEO of Deliveroo, said, 'We have reported strong performance in the first half of the year and continued to make good progress in executing our strategy. As a result, we are well positioned to take advantage of the huge opportunity ahead.

'We are seeing strong growth and engagement across our marketplace as lockdowns continue to ease. Demand has been high amongst consumers. We have widened our consumer base, seen people continuing to order frequently and we now work with thousands more restaurants. At the same time, more riders are choosing to continue to work with the company because they value the work we offer.

'As reflected in our guidance, whilst we expect that consumer behaviour may moderate later in the year, we remain excited about the opportunity ahead and our ability to capitalise on it.'