Food delivery company Deliveroo rode deeper into the red in its first year as a publicly listed company on Thursday, posting a £298 million ($390m) pre-tax loss for 2021, compared with a £213m loss in 2020.
The London-based company attributed the losses to marketing and technology investment as it sought to maintain momentum after being boosted by coronavirus pandemic restrictions.
Deliveroo expects an increase of between 15 per cent and 25 per cent in the value of its transactions on its platform in 2022, a slowdown from the 70 per cent registered in 2021 when activity was boosted by lockdowns.
Retail gloom
Online grocer Ocado revealed retail sales fell 5.7 per cen in its first quarter as customers switched back to pre-pandemic shopping patterns.
It was a tough comparison from a year earlier, when the UK was in lockdown, but on a two-year basis its retail division, a joint venture with Marks&Spencer, rose 31.7 per cent over the quarter.
The group added that a 15 per cent drop in customer basket size offset an 11.6. per cent rise in the number of customer transactions.
Founder and chief executive Will Shu said he was “proud” of the company’s performance in 2021 after it continued to make good progress in executing its strategy.
“At the same time, this year it is clear that all three sides of our marketplace in Europe will face headwinds due to inflationary pressures, the removal of economic stimulus and the broader geopolitical and economic impacts of the conflict in Ukraine,” Mr Shu said in a statement posted on the London Stock Exchange, where its shares are traded.
“We will continue to monitor developments closely. Our 2022 guidance reflects our caution on these factors but we are confident in our ability to adapt financially to a rapidly changing macroeconomic environment.”
The results come about a year after the company’s disastrous debut on the London Stock Exchange on March 31 when the share price plunged 30 per cent on its first day of trading, wiping more than £2bn from Deliveroo’s £7.59bn valuation.
Its share price was up more than 6 per cent on Thursday at 9.01am London time, as investors responded positively to the rising transaction figures. However, the company’s shares have fallen 44 per cent this year.
Last year's revenue increased by 57 per cent to £1.8 billion, driven by the increase in sales transactions.
‘’Deliveroo is riding deeper into the red, as it shifts gears to try to carry off a bigger slice of the takeaway market,” said Susannah Streeter, senior investment and market analyst at Hargreaves Lansdown.
“All muscles are pumping in terms of sales, with gross transactional value jumping by 71 per cent. It is making a huge effort to pedal into new markets to try to widen its reach of riders across the UK, and that has encouraged investors … Its aggressive growth strategy is expensive and even though revenue have risen by 57 per cent, losses have deepened.”
The group said it benefitted from further strength in its key UK business, where orders increased by 72 per cent.
As a result, the company achieved profitability on an adjusted earnings before interest, taxes, depreciation and amortisation (ebitda) basis in the UK and Ireland, something Mr Shu found “particularly encouraging”.
Deliveroo said that it added about 19,000 more restaurant sites to its UK platform over the year, while it was also boosted by its growing grocery operation, which expanded by more than two thirds to about 6,000 sites.
“We are pleased to have strengthened our proposition for our marketplace in 2021, increasing choice for consumers, offering riders more security in the form of improved insurance and giving our restaurant and grocery partners opportunities to grow their businesses,” Mr Shu said.
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Killing of Qassem Suleimani
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Saturday Spezia v Lazio (6pm), Juventus v Torino (9pm), Inter Milan v Bologna (7.45pm)
Sunday Verona v Cagliari (3.30pm), Parma v Benevento, AS Roma v Sassuolo, Udinese v Atalanta (all 6pm), Crotone v Napoli (9pm), Sampdoria v AC Milan (11.45pm)
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The bio
Who inspires you?
I am in awe of the remarkable women in the Arab region, both big and small, pushing boundaries and becoming role models for generations. Emily Nasrallah was a writer, journalist, teacher and women’s rights activist
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Yoga relaxes me and helps me relieve tension, especially now when we’re practically chained to laptops and desks. I enjoy learning more about music and the history of famous music bands and genres.
What is favourite book?
The Perks of Being a Wallflower - I think I've read it more than 7 times
What is your favourite Arabic film?
Hala2 Lawen (Translation: Where Do We Go Now?) by Nadine Labaki
What is favourite English film?
Mamma Mia
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Business Insights
- As per the document, there are six filing options, including choosing to report on a realisation basis and transitional rules for pre-tax period gains or losses.
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Like a Fading Shadow
Antonio Muñoz Molina
Translated from the Spanish by Camilo A. Ramirez
Tuskar Rock Press (pp. 310)
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UAE currency: the story behind the money in your pockets
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MORE ON THE US DEMOCRATIC PRIMARIES
MATCH INFO
Uefa Champions League final:
Who: Real Madrid v Liverpool
Where: NSC Olimpiyskiy Stadium, Kiev, Ukraine
When: Saturday, May 26, 10.45pm (UAE)
TV: Match on BeIN Sports
The Bio
Favourite Emirati dish: I have so many because it has a lot of herbs and vegetables. Harees (oats with chicken) is one of them
Favourite place to go to: Dubai Mall because it has lots of sports shops.
Her motivation: My performance because I know that whatever I do, if I put the effort in, I’ll get results
During her free time: I like to drink coffee - a latte no sugar and no flavours. I do not like cold drinks
Pet peeve: That with every meal they give you a fries and Pepsi. That is so unhealthy
Advice to anyone who wants to be an ironman: Go for the goal. If you are consistent, you will get there. With the first one, it might not be what they want but they should start and just do it
THREE
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4,872 matches
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116 pitches
76 nations
26 UAE teams
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2 Kuwaiti teams
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Retail gloom
Online grocer Ocado revealed retail sales fell 5.7 per cen in its first quarter as customers switched back to pre-pandemic shopping patterns.
It was a tough comparison from a year earlier, when the UK was in lockdown, but on a two-year basis its retail division, a joint venture with Marks&Spencer, rose 31.7 per cent over the quarter.
The group added that a 15 per cent drop in customer basket size offset an 11.6. per cent rise in the number of customer transactions.
