Deliveroo sees FY core profit in upper half of guided range after strong H1

(Sharecast News) - Deliveroo said on Thursday that full-year core profit was set to be in the upper half of its guided range following a strong first-half performance. In the six months to 30 June, orders rose 8% to £147m, with revenue also 8% higher, at £1.05bn. Gross transaction value picked up 9% to £3.8bn.

Adjusted earnings before interest, tax, depreciation and amortisation grew 46% to £96.3m. However, the company reported a loss of £19.2m, versus a profit of £1.3m in the same period a year earlier.

Deliveroo - which agreed earlier this year to be bought by US rival DoorDash for £2.9bn - said this was mainly due to higher exceptional items relating to costs associated with the acquisition.

As far as the outlook is concerned, the company narrowed its guidance range for GTV growth to around the top end of the previously-guided range of high single-digits percentage growth in constant currency.

It also said it now expects adjusted EBITDA to be in the upper half of the previously-guided range of £170m to £190m.

Founder and chief executive Will Shu said: "The first half of this year was very positive. Our long term focus on improving the CVP is paying off. Consumer engagement is encouraging, with order frequency and retention continuing to improve across all cohorts.

"Today, both growth and profitability are accelerating. We are delivering on our mission to change the way people shop and eat and to bring the neighbourhood to people's doors. I'm proud of where we are and all that we have achieved. We helped to build an entire sector and have redefined it multiple times over.

"I'm excited for what the partnership with DoorDash can bring in the future. They will be an excellent partner for everyone at the company, as well as for our consumers, merchant partners and riders."