Deliveroo PLC (LSE:ROO) will give investors a catch-up on how things have been going in the third quarter on Thursday, 19 October, its first update since hiking profit guidance at its half-year results.
The shares are up by over 60% over the past 12 months as the food delivery group outperformed rivals in the UK & Ireland in the past couple of years and continues to ramp up profits.
In August's interim update, the group guided to full-year underlying profits (EBITDA) between £60 million and £80 million, up from a previously tipped range of £20 million to £50 million, having reached positive pre-tax earnings sooner than expected at the half-year stage.
Deliveroo ultimately has its sights on “generating consistent positive free cash flow”, chief executive Will Shu said.
Whether it has continued on this positive course into the third quarter of the year will be the key item on the agenda, even if orders have continued to take a hit from high food inflation.
Despite this, one key growth driver could be Deliveroo’s expansion into the grocery delivery market, according to Bank of America analysts.
The analysts said they think the growth shown in the first half “should be sustainable, as its expansion into grocery leads to greater ad opportunities and further supports profitability expansion”.