Deliveroo reports resilient year of growth: Deliveroo has said that 2023 was a “resilient year of growth” for the business, given macroeconomic conditions, with gross profit up 13% and revenue and Gross Transaction Value (GTV) up 3%. It said that the growth trend improved in the second half with H2 GTV up 5% year-on-year and orders recovering through the year to be flat year-on-year in Q4. The business said it made “significant progress” on profitability in the year to 31 December 2023, with adjusted Ebitda of £85m (2022: (£45m)); adjusted Ebitda margin (as a % of GTV) increased to 1.2% (2022: (0.7%)). Its loss for the period reduced by £262m to £32m. The company said that “profit improvement levers” included efficiencies in its delivery network, optimisation of marketing spend, overheads savings and a higher advertising contribution. It also said it had made further progress towards sustainable cash generation, with free cash outflow reduced to £38m (2022: (£243m)), which included £20m cash exceptionals and excluded £32 million interest income. During the year the company said it made continued investment and innovation in its consumer value proposition (CVP), with enhanced selection and in-app experience, premium delivery, top-up grocery orders and launch of retail proposition. It said these CVP initiatives were driving clear benefits with higher NPS, lower average mark-ups by restaurants on the platform, improvement in key service metrics and grocery reaching an annualised GTV run-rate of £1bn in Q4, with particularly strong growth in mid-sized basket orders. It also said there are multiple opportunities for growth including further enhancing CVP (selection, price/value, Deliveroo Plus and delivery experience) and new verticals and use cases (retail and mid-sized grocery baskets). Strong levers for profitability and cash flow include reducing rider wait time and smarter order stacking, increased marketing efficiency, and greater automation to drive operating leverage as we scale. In terms of GTV growth, it said it is targeting mid-teens percentage growth per annum in constant currency in the medium term. In terms of adjusted Ebitda margin, it set out a target of 4%+ by 2026. Looking ahead to this year, it said that GTV growth (in constant currency) is anticipated to be in the range of 5-9%, while Q1 growth is expected to be similar to Q4 2023, with an improvement in growth through the year as “we continue to deliver on our plans”. Adjusted Ebitda expected to be in the range of £110-130m, while free cash flow expected to be positive for the full year 2024. Will Shu, founder and chief executive of Deliveroo, said: “2023 was a good year for Deliveroo and I am proud of what we have delivered financially, operationally and for our consumers. Our focus on service and value for money continues to build consumer trust, which are fundamental to unlocking future growth in this industry. Alongside this, our restaurant and grocery businesses are performing well, we launched our retail offering, Deliveroo Shopping, and we are scaling our advertising business. Building on the strong progress we made in 2023, I’m excited about the further opportunities ahead. We have clear strategic priorities and initiatives in place to achieve our medium-term targets, and I am confident in our ability to deliver continued profitable growth.”

Next Who’s Who of UK Hospitality to feature 36 updated entries and 11 new companies, released tomorrow: The next Who’s Who of UK Hospitality will feature 36 updated entries and 11 new companies when it is released to Premium Club members tomorrow (Friday, 15 March), at midday. This month’s edition includes 866 companies and more than 232,000 words of content. The companies, listed in alphabetical order, will have their most recent results reported as well as broader information around Ebitda, plans and trading style available. The database merges Companies House information, interviews and other public information to provide an easy to reference and exhaustive guide to the sector. Premium Club members also receive access to five other databases: the Multi-Site Database, produced in association with Virgate; the New Openings Database; the Turnover & Profits Blue Book; the UK Food and Beverage Franchisor Database and the UK Food and Beverage Franchisee Database. All Premium Clubs members will be offered a 20% discount on tickets to five Propel paid-for events – The Excellence in Pub Retailing Conference (14 May), Social Media for Profit (18 July), the Talent and Training Conference (1 October) and Restaurant Marketer and Innovator (two days in January 2025). Operators that are Premium Club members will also be able to send up to four members of staff to each of our four Multi-Club Conferences for free. Premium Club members receive their daily Propel Info newsletter 11 hours earlier than standard subscribers, at 7pm the evening before. They also receive videos of presentations at eight Propel conference events two weeks after they are held. This represents around 100 videos of industry insight over the course of the year. Premium Club members will be sent a dedicated monthly newsletter that will highlight key updates in the sector and direct subscribers to all the vital content their membership offers. Premium Club members also receive exclusive opinion columns every Friday at 5pm, which include the thoughts of Propel group editor Mark Wingett and a host of industry leaders from across the sector. A Premium Club subscription costs an annual sum of £495 plus VAT for operators and £595 plus VAT for suppliers. Companies can now have an unlimited number of people receive access to Premium Club for a year for £995 plus VAT – whether they are an operator or supplier. Email kai.kirkman@propelinfo.com today to sign up.