The market treated Deliveroo PLC's (LSE:ROO) first full-year profit like the arrival of a late and cold doner kebab, sending the shares lower in early trade.
The takeaway delivery group reported a £2.9 million profit for 2024, a sharp turnaround from a £31.8 million loss the year before.
Revenue and orders both rose 2%, helped by Deliveroo’s push beyond takeaway food. Grocery orders now account for around 16% of the company’s total transaction value.
The firm also added retailers such as Ann Summers, B&Q, and The Perfume Shop to its platform.
CEO Will Shu said customer retention and order frequency had improved despite economic uncertainty. He remains focused on loyalty programmes and expanding Deliveroo’s grocery and retail offering.
Panmure Liberum pointed to guidance for the current year being a potential issue as it noted that consensus EBITDA is currently £191 million - ahead of Deliveroo's forecast range of £170-£190 million.
The broker says 'buy' up to 210p. In early trading, the shares fell 4% to 119.9p.