Deliveroo Ireland credited increased demand and changes in ordering behavior caused by Covid-19 with a 75% increase in gross profit last year.
The take-out ordering app brought in €14.7m in 2021, up from €8.4m the previous year, while revenue from operations grew 64% year-on-year. other, from 26.3 million euros to 43.2 million euros.
Recently released accounts show that the company finally recorded a profit of €718,000 for the year, an improvement from €562,000 in 2020, and the company now has net assets of €3.9m, of which a cash balance of €21.4m, triple the €7.3m. in cash that he held a year earlier.
Deliveroo recorded an operating profit of €1.1m after selling costs of €28.4m, administrative costs of €5m and other operating costs such as personnel costs and selling and marketing of €8.6 million (all increases from one year to the next) into account.
The company also had financial charges of €304,000 and paid income tax of €101,000. Salaries, wages and social charges amounted to €627,000, down sharply compared to the more than €1 million in personnel costs, including €289,000 for dismissal, paid by Deliveroo in 2020.
Deliveroo employed 10 people in sales, marketing and operations – its delivery people are technically self-employed – up from 12 the previous year. commercial director of Deliveroo for the United Kingdom and Ireland, Carlo Moccireplaced Caleb Merki as company director in December.
The release of Deliveroo Ireland’s 2021 accounts comes after Deliveroo reported annual revenue growth of 12% for the first half of 2021, with orders up 10% and gross transaction value up 7%.
However, revenue growth slowed from 12% in the first quarter to 2% in the second quarter as consumers faced runaway inflation following Russia’s invasion of Ukraine in February.
Deliveroo said it was making good progress in its drive to become profitable, with losses falling from £106m in the first half of 2021 to £68m in the first half of 2022, and the company gained market share in UK, Ireland and international markets such as Italy.
Gross profit margin as a proportion of gross transaction value increased 70 basis points year-over-year due to higher consumer fees and advertising revenue, and marketing as a proportion of GTV was down reduced through “careful spending targeting”.
Deliveroo entered into partnerships with supermarket and convenience chains such as Waitrose, Sainsbury’s, Co-op, ASDA and Spar, and Auchan (France), Esselunga (Italy) and ParknShop (Hong Kong) during the period, while by adding McDonald’s in the UK.
Other milestones during the semester include the GMB union recognizing Deliveroo riders as self-employed, the start of a consultation on a proposal to cease operations in the Netherlands and a program to buy shares of up to £75 million.
“Deliveroo is committed to generating profitable growth. We are focused on driving the business to the milestone of Adjusted EBITDA profitability and then to generating positive free cash flow,” said Will Shufounder and CEO of Deliveroo, last month.
“In March, we laid out our path to profitability and the levers to get there. So far in 2022, we have made good progress in delivering on our profitability plan, despite increasing headwinds from consumption and slowing growth over the period. We are confident that in H2 2022 and beyond, we will see further gains from actions already undertaken, as well as benefits from new initiatives.”
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