Deliveroo losses widen to £298m despite surging revenues
It has seen ‘good momentum’ in these differentiated offerings, growing UKI Plus subscribers four-fold in the year and adding more than 100 editions of delivery-only kitchens globally.
Deliveroo has announced a loss before income tax of £298m in comparison to £213m in 2020 during its FY21.
According to the company this was due to increased marketing and staff costs as well as a reduction in relief grants introduced in 2020 as a consequence of the impact of Covid-19.
However the food service firm reported revenues increased 57% to £1.8bn primarily due to the increase in GTV.
Gross profit also increased by 43% to £497m, however, the firm disclosed gross profit margin of 7.5%, down from 8.7% in 2020 due to “accelerated investments” in consumer acquisition and retention to support future growth, as well as the reversal of benefits from higher basket sizes during Covid-related lockdowns.
UKI grew GTV by 71% year-on-year, with UK population coverage expanded to 77% at end-2021 in comparison to 53% at end-2020, “planting the seeds” for future growth.
Additionally, Deliveroo said it has seen “good momentum” in these differentiated offerings, growing UKI Plus subscribers four-fold in the year and adding more than 100 editions of delivery-only kitchens globally.
Yet the firm warned 2022 may endure “current uncertainties”, particularly across European markets, due to inflationary pressures, post-Covid consumer behaviour, and the broader geopolitical and economic impacts of the conflict in Ukraine.
Will Shu, founder and CEO of Deliveroo, said: “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.
“We are excited about the opportunities ahead and have today laid out our plans on our longer-term path to profitability. This is a key focus for the company this year and beyond.”
He added: “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.
“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.”
