Deliveroo PLC (LSE:ROO) has said it is on course for improved earnings in 2023 after reporting positive adjusted EBITDA for the second half of 2022.
The meal delivery firm forecast 2023 adjusted EBITDA in the range of £20mln-£50mln, weighted to the second half of the year.
The prediction came in annual results for the 12 months to December 31, 2022, which showed positive adjusted EBITDA in the second half of the year, boosted by improved gross profit margins to 9.4% from 7.9% in 2021.
Deliveroo said the results reflected a good year of growth in challenging market conditions with gross profit up 30%, revenue up 14%, and gross transaction value up 9% year-on-year driven by continued market share gains in the UK and Ireland and in key international markets such as France and Italy.
Gross transaction value in 2002 rose by 9% to £6,848.1mln, revenue jumped 14% to £1974.1mln, and gross profit leapt by 30% to £643.2mln.
Adjusted EBITDA loss for continuing operations narrowed to £45mln from £100mln with the adjusted EBITDA margin for the year at -0.7% a 90 basis point improvement from -1.6% in 2021.
Deliveroo said the results demonstrated strong execution on operational initiatives which underpinned the key 2022 profit levers: optimisation of consumer fees, efficiency gains in the rider network and efficient targeting of marketing spend.
It noted that further actions would be taken in early 2023 to drive overhead savings.
The group also launched a new £50mln share buyback programme.