Deliveroo PLC (LSE:ROO)'s share price was up 4% in early trade following the announcement of better-than-expected core earnings of £85 million for 2023, with the meal delivery company projecting further progress and a move into positive cash flow in 2024.
Despite a 3% year-on-year decrease in total orders, a slight rebound was observed in the final quarter, stabilising the year's performance. The total value of orders experienced a 3% increase to £7.6 billion, attributed to restaurant and grocery price inflation.
Chief executive Will Shu highlighted Deliveroo's strides towards profitability and enhanced delivery speed and reliability for customers.
Anticipating an increase in core earnings to between £110 million and £130 million this year, Shu expressed optimism about the company's financial trajectory, stating: "On a free cash flow basis, we were on the brink of break-even in '23, and we'll improve on that in '24."
The shares were changing hands for 119.22p, up 4.72p.