Deliveroo: Reduced losses in H1/2021 following strong growth

  •   27/08/2021 - 09h26
  •   DEHOUI Lionel

Deliveroo aims to become the best online food company. It wants to become the digital platform that anyone will think of whenever they need food. Therefore, the company has been working towards this main goal throughout the first half of 2021. Moreover, its performance over this period shows that it has been able to reduce its losses considerably.

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Deliveroo: Reduced losses in H1/2021 following strong growth

Deliveroo's turnover in the first half of 2021

Deliveroo had a turnover of £922.5 million at the end of H1/2021. Last year, its turnover reached £507.4 million in the same period. So there is an increase of £415.1 million (+82%) from 2020 to 2021. This is due to the significant increase in orders caused by the increase in monthly active consumers.

At the end of the six months, sales generated a total of £658.6 million compared to £356.8 a year ago. This represents an 85% increase between the two years. Other operating income generated £1.2 million compared to £2.7 million in H1/2020. This represents a 56% decrease in H1/2021 compared to H1/2020.

Deliveroo's administrative expenses in H1/2021 as a whole are £364.2 million.

Note: These administrative expenses have increased by 32% compared to their total in H1/2020 (£275.6 million). Deliveroo's other operating expenses were £8.1 million at the end of H1/2021 (+69%) compared to £4.8 million in H1/2020.

 

Other Deliveroo financial results in H1 2021

In H1 2021, Deliveroo's financial income was £3.0 million. This shows a 275% increase in H1/2021 compared to last year. The company has £0.6 million of total finance costs recorded in H1/2021 (-71% compared to H1/2020). As a result, Deliveroo's tax charge in H1 was £3.9 million.

Overall, Deliveroo recorded a £108.7 million decline in the first 6 months of 2021. The company has therefore been working to reduce its half-year losses compared to the first half of 2020 when the decadence reached £126.2 million.

On the other hand, the profit margin came out lower at 7.8% compared to 8.8%, a year earlier. Adjusted Ebitda was £27.0 million in H1/2021 (vs. £30.3 million).

 

Deliveroo's outlook for the 2021 financial year

At the end of H1 2021, Deliveroo Group has a strong financial position. Its cash and cash equivalents reached £1.63bn at 30 June 2021 compared to £215.6m at the end of H1/2020.

With this cash position, the Group reiterates its targets for the full year 2021. It should be noted that these are the annual targets updated on 8 July. In other words, the meal delivery company (after online orders) is still counting on significant annual growth in gross transaction value (GTV). It pegs this growth at 50-60% for 2021 and expects gross margin to be between 7.5-8% (due to accelerating investments responsible for growth).

Deliveroo expects to reach its pre-pandemic level in the second half of 2021 for gross margin.