Deliveroo – consumer environment now stabilising, posts first profit as orders grow: Deliveroo has said the consumer environment is now stabilising as it reported its first profit. The company said for the six months ending 30 June 2024 it saw growth across key metrics with gross transaction volume (GTV) up 6%, revenue up 2% in constant currency to £1.03bn (2023: £1.02bn) and orders returning to growth of 2%. Orders in the UK and Ireland were up 1% to 80.2 million (2023: 79.6 million). GTV was up 7% in the UK and Ireland and by 5% in its international division, where orders returned to growth driven by improvement in France and “continued strength” in UAE and Italy. Deliveroo said there was “encouraging early signs” in consumer behaviour with frequency returning to growth and retention improving, supported by improvements in its consumer value proposition. Adjusted Ebitda was up 57% to £62m (2023: £39m) while adjusted Ebitda margin (as a percentage of GTV) increased to 1.7% (2023: 1.1%), driven by higher advertising contribution, efficiencies in the delivery network and overhead efficiencies. Profit for the period was £1m compared with a loss of £83m in the first half of 2023. The company reported net cash of £662m (2023: £679m) and free cash flow of £3m. Deliveroo said innovation in its Plus loyalty programme, in line with its ambition to be a Plus-first business by 2026, saw it introduce a new premium tier, Plus Diamond, in the UK, while it made improvements to “Plus Gold” and “Plus Silver” in the UK and Ireland and France. The company saw “strong growth” in grocery, which reached 14% of group GTV in the period, while its retail rollout is focused on driving awareness and increased selection through new partnerships and expanded site rollouts with major brands in the UK and UAE, showing “positive early progress”. It has also launched the proposition in Kuwait and Hong Kong. Deliveroo also reported continued improvement in its net promoter score, with June 2024 the highest level since mid-2021. For the rest of 2024, Deliveroo said it now expects adjusted Ebitda to be in the upper half of the previously-guided range of £110m-£130m. GTV growth (in constant currency) is still anticipated to be in the range of 5%-9% and free cash flow is expected to be positive for the full year. Deliveroo also announced a £150m share buyback “reflecting financial progress in the last year and confidence in the outlook”. Will Shu, founder and chief executive of Deliveroo, said: “I am pleased with the performance we have achieved this half, which was driven by effective execution of our growth and profitability initiatives. As a result, we reached two major financial milestones: positive free cash flow and positive profit for the period. We took important steps to make our consumer value proposition even more compelling. We innovated our loyalty programme, Plus, with the biggest changes since we launched the programme in 2017 as we continue to make strides towards our ambition to be a Plus-first business by 2026. I’m also delighted that we have further improved our net promoter score, a key indicator of consumer satisfaction. I strongly believe that consumer trust is the key to unlocking further growth in this industry and that is why we are relentlessly focussed on achieving a flawless delivery experience, along with ensuring fair pricing for our consumers. Looking ahead, while there is continued uncertainty in the external environment, I am encouraged by the inflection we are currently seeing in consumer behaviour in many of our markets. The Deliveroo platform is more powerful than ever, and we remain responsive to the external environment while continuing to optimise our proposition for consumers, riders and merchants. We operate across attractive verticals, in large, underpenetrated markets, and it’s clear that there is a lot of room for growth in our industry. I want to thank the Deliveroo team whose talent and expertise is invaluable as we continue to capture the many opportunities ahead of us.”

C&C Group reaches agreement with activist investor: C&C Group, owner of the Tennent’s, Magners and Bulmers Ireland brands, and Matthew Clark, Bibendum Wine and Walker & Wodehouse, has said it has reached an agreement with activist investor Engine Capital. Earlier this month, Engine again urged the need for boardroom change at C&C after “years of underperformance” and put forward two of its “highly qualified” directors to join the board. That came after Engine, which owns just under 5% of C&C’s shares, previously demanded a strategic review process that could lead to the drinks business going private. C&C said it and Engine have agreed to put in place a “cooperation agreement” and “work constructively together in the best interests of the company, all its shareholders and wider stakeholders”. C&C stated: “Under the agreement, the company will commence a process to appoint one new non-executive director with capital markets expertise to the board from a short-list of nominees agreed with Engine. Under the agreement, Engine will withdraw its two proposed nominees for election at the upcoming annual general meeting (AGM) on 15 August 2024. The agreement includes customary governance, standstill and voting provisions. Engine has confirmed it will vote in support of all resolutions proposed at the AGM in line with the board’s recommendations.”