Deliveroo PLC (LSE:ROO) has swung into an adjusted profit at the half-year stage, prompting a guidance hike and proposal for a share buyback.
Adjusted pre-tax earnings climbed to £39.4 million during the six months to June, up from a £51.6 million loss last year, the delivery company reported on Thursday.
As a result, Deliveroo now anticipates full-year pre-tax earnings will come in between £60 million and £80 million, up from between £20 million and £50 million previously.
“Deliveroo has reached adjusted EBITDA profitability ahead of plan, and we are progressing towards our goal of generating consistent positive free cash flow,” founder and CEO Will Shu said.
“The industry is large and still early in its maturity, and we are excited by the growth opportunities ahead of us.”
Shu added the board had decided to propose a “£250 million capital return to shareholders” on the back of the results, which came “despite challenging macroeconomic conditions”.
Overall losses for the period reduced by 46% to £82.9 million, the company added, as revenue jumped 5% to £1.02 billion.